Delaware Jobless Rate Rises to Match U.S. Average

Dover, Del. – Delaware’s unemployment rate is now on par with the national figure, signaling both the challenges and resilience of the state’s job market.

The Delaware Department of Labor reported that the state’s seasonally adjusted unemployment rate rose to 4.3% in August 2025, up slightly from 4.1% in July. That matches the national unemployment rate, which also stood at 4.3% in August, up from 4.2% the previous month.

For much of the past year, Delaware had maintained a rate below the U.S. average, though the gap had been steadily narrowing. The latest data shows 21,900 Delawareans unemployed in August, compared to 18,700 in August 2024.

Nationally, the unemployment rate a year earlier was 4.2%, while Delaware’s stood at a healthier 3.7% at that time.

Employment Growth and Declines

Despite the uptick in unemployment, total employment in Delaware continued to expand modestly. The state recorded 493,800 nonfarm jobs in August 2025, up from 493,000 in July. Over the past year, job growth totaled 3,500 positions, an increase of 0.7%, nearly keeping pace with the national job growth rate of 0.8%.

The strongest job gains came in private education and healthcare, where healthcare alone accounted for about 1,500 new positions. Other sectors showing notable growth included:

• Transportation and retail trade: +1,000 jobs
• Leisure and hospitality: +800 jobs
• Construction: +400 jobs

However, the state’s economy also saw losses in key white-collar industries. Professional and business services and financial services shed a combined 1,000 jobs, highlighting a mixed picture of Delaware’s labor market recovery.

County and City Rates

Regional disparities remain a significant factor.

• Sussex County reported the lowest unemployment rate at 4.4%,
• Kent County posted 5.9%, the highest county-level figure,
• New Castle County stood at 5.3%.

Within cities, unemployment ranged widely:

• Wilmington and Dover recorded jobless rates above 7%,
• Middletown came in at a far lower 5%, reflecting local economic strength and growth.

Broader Context

Economists note that Delaware’s rising unemployment rate, while in line with the national average, comes amid broader concerns about slowing hiring across the U.S. Sectors tied to healthcare and transportation remain steady drivers of employment, but weakness in professional and financial services suggests businesses may be exercising caution heading into late 2025.

The state’s labor department emphasized that the slight rise in unemployment should be viewed in context with steady overall job creation. In particular, growth in healthcare, transportation, and leisure industries points to ongoing demand that could help balance out job losses in office-based sectors.

As Delaware heads into the fall, policymakers and businesses alike will be watching to see if the state can maintain its modest job gains while managing the pressures of a slowing national economy.

Originally reported by Doug Rainy in Delaware Business Now.