Idaho’s labor market has long stood out for its relatively high level of workforce participation and low unemployment.

While the national labor market has cooled from the exceptionally tight conditions seen after the COVID-19 pandemic, Idaho’s current and projected demographic makeup indicates workforce advantages to its labor market that the nation lacks.

Idaho has a larger share of its population in the labor force

The labor force consists of people who are either employed or actively looking for work. The labor force participation rate measures this group as a share of the civilian non-institutional population age 16 and older.

Figure 1 below illustrates the labor force participation rate for Idaho and the U.S. from 1990 through 2025. Idaho’s share has consistently been above the national level for decades.

The labor force participation rate began to decline for both Idaho and the nation in 2008 during the Great Recession and continued to decline as the population aged out of the labor force into the 2020s. As of 2025, Idaho’s labor force participation rate was 63.3% compared with 62.4% nationally.

Figure 1. Labor force participation rate, Idaho and U.S., 1990-2025Source: Bureau of Labor Statistics

Idaho’s employment levels are higher

Over the past few decades, Idaho had not only a larger share of its population participating in the labor market, but a larger share of its population actually working when compared with the nation.

Idaho’s employment-population ratio — the percentage of the civilian non-institutional population that is employed — was approximately 61% in 2025. Nationally, this figure was 59.8%, as shown in Figure 2 below.

Figure 2. Employment-population ratio, Idaho and U.S., 1990-2025Source: Bureau of Labor Statistics

It is possible for a state to have a relatively low unemployment rate due to people ceasing to look for work and therefore no longer being counted as unemployed. Idaho’s labor market is different as its participation is relatively high while unemployment remains relatively low.

In 2025, Idaho had a 3.6% unemployment rate, compared with 4.3% nationally. At the same time, Idaho’s labor force participation rate was almost a full percentage point above the U.S.’s rate.¹ The combination of more people participating in the labor market in addition to fewer unemployed people is the clearest indicator of Idaho’s comparatively strong labor market.

Idaho’s hidden economic strength: balanced demographic growth

Demographics and demographic growth in Idaho are a key indicator as to why its labor force has more relative participation and a greater share of employed people compared with the nation.

Figure 3 below compares 10 years of population growth in Idaho and the U.S. in a few key demographic age brackets.

From 2014-2024, growth in Idaho’s 65 and older age bracket outpaced the nation, impacting the makeup of its labor force as the population continued to age. However, Idaho’s prime age workforce, those age 16-64, also saw substantial growth of 23.2% compared with just 1.6% nationally.

Figure 3. Population growth by age bracket, Idaho and U.S., 2014-2024Source: U.S. Census Bureau

Looking ahead: Idaho and U.S. projections

Demographic strength will continue to be an asset to Idaho’s labor market in the coming decade. Figure 4 below showcases this by comparing the state’s projected population growth change by certain age brackets with the U.S. from 2024-2034.

Despite Idaho’s aging population projected to continue growing at a faster clip than the nation, its working age and youth populations are also projected to continue growing. This will offset the increase in those who have left the labor force and allow the state to handle the growing demographic crunch better than the nation.

Figure 4. Population growth by age bracket, Idaho and U.S., 2024-2034Source: U.S. Census Bureau and Idaho Department of Labor

Figure 5 below further demonstrates the impact of Idaho’s working age and youth populations over the next decade, showing the state’s projected labor force percentage growth to be substantially higher than the nation’s. Idaho is forecasted to grow over 13%, compared with the U.S. at a little over 3%.

Figure 5. Projected labor force percentage growth, Idaho and U.S., 2024-2034Source: Idaho Department of Labor

Conclusion: Idaho’s labor market story differs from the national economy

The labor market comparison between Idaho and the U.S. highlights an important structural difference.

Nationally, labor force participation has remained below its pre-pandemic levels, and demographic factors, including population aging, continue to place pressure on labor force growth.

In contrast, Idaho’s strong population growth and high propensity to participate in the workforce have helped expand the state’s available labor pool. Additionally, the state’s current and projected growth in the working age and youth populations forecasts greater workforce growth than the nation for the coming decade.

Idaho’s labor market indicators tell a consistent story: Idaho has a highly engaged workforce and a labor market that continues to perform relatively well compared with the nation.

Seth.Harrington@labor.idaho.gov, regional economist
Idaho Department of Labor
208-696-2364

Sources

1. “Current Employment Statistics – CES (National)”, Bureau of Labor Statistics, accessed 9/25/26, Current Employment Statistics – CES (National) : U.S. Bureau of Labor Statistics.

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This project is 100% funded by the U.S. Department of Labor for SFY2027 as part of the Workforce Information Grant (55%) and state/nonfederal funds (45%) totaling $360,000.

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