There’s good and bad news to report from Montana’s labor market last year, according to economists with the University of Montana’s Bureau of Business and Economic Research.
The bad news: director Jeffrey Michael says the state lost jobs year-over-year last June for the first time since the pandemic.
The good news: the average wage grew by more than 5% over that same period.
“This is much, much more positive," Michael says. "And, in fact, the same 2025 data shows Montana was number out of 50 states for the increase in the average wage. This is a big deal.”
Michael and other researchers presented an economic outlook to around 200 business professionals at a conference in Missoula in January. New jobs in education, health and business services drove growth in Montana last fiscal year, while jobs in the federal government, hospitality and natural resources declined.
Flathead, Gallatin and Yellowstone counties saw the greatest job growth, and Cascade County lost the most jobs.
Meanwhile, the state’s red-hot housing market continues to show signs of cooling as prices flatten. Rents, however, are rising in most counties. Economists say that’s partially driven by would-be homebuyers renting for longer.
One economic bright spot in a crucial industry: fewer tourists visited the Treasure State in 2025, but those that did spent more money – upwards of $5.5 billion.
