Unemployment in the Capital Region Dips to the Lowest Rate Since April 2023
Monthly labor force data for the Capital Region counties show consistent long-term cyclical patterns shaped by major economic events, including the Great Recession and the sharp but brief spike in unemployment during the COVID-19 pandemic. Following the elevated unemployment levels of 2020, the region experienced a steady recovery through 2021 and 2022, returning to historically low unemployment rates by 2023. Updated through 2025, the data track the number of individuals employed and unemployed, as well as the overall unemployment rate for the Capital Region counties.
In 2025, the Capital Region’s unemployment rate peaked in February at 4.0%. Unemployment declined steadily into the spring, reaching a low of 2.7% in May, the lowest level recorded since April 2023. This decrease proved temporary, as the rate rose again through August before stabilizing at approximately 3.5% for the remainder of the year. Throughout 2025, the Capital Region maintained unemployment rates below the statewide average, a positive sign for the labor force in the Capital Region.
At the county level, unemployment trends varied modestly. Schenectady County consistently recorded the highest unemployment rates in the region, while Saratoga County maintained the lowest, though differences between counties remained smaller than in previous decades.
Examining employment levels alongside the unemployment rate provides additional context. The number of unemployed individuals declined during the spring months of April and May, aligning with the drop in the unemployment rate during the same period. Meanwhile, total employment in the region remained relatively stable throughout the year, averaging 431,180 employed persons. Albany County accounted for the largest share of employment, reflecting its concentration of major job centers. Overall, employment levels were steady throughout the year, reflecting a resilient labor force and sustained demand for workers across key sectors in the region.
