DOVER — Delaware’s unemployment rate is holding steady at 4.2%, but the state is now seeing labor force participation as low as it was at the start of the COVID-19 pandemic.
The state reported that it gained 800 jobs in September, while losing 300 jobseekers, according to the monthly labor report released Friday morning. Delaware now has a total labor force of 504,800 — slightly down from the month before.
The labor force captures not only workers and those receiving unemployment benefits, but also those in search of work who aren’t receiving assistance. As workers stop seeking employment roles for a variety of reasons, ranging from retirement to child care needs, they are no longer counted as being unemployed in the state.
But analysts also found that Delaware’s seasonally adjusted labor force participation rate has continued to decline since October 2023. That rate is the number of people who are 16 and older who are not incarcerated or in nursing homes, mental health facilities or the military that are either working or looking for jobs.
In Delaware, the labor participation rate is now at 59.5%, the same level where the state was in April 2020, the first full month after COVID-19 rocked the world and forced many companies to lay off or furlough workers.
In comparison, the United States reported a labor participation rate of 62.7%. The 320 basis point gap between the state and the national rate is the second largest it has been since 2010.
Delaware saw its population of possible workers aged 16 and older grow by 13,300 between September 2023 and September 2024. At the same time, the state’s labor force dropped by 4,700 workers.
There are many factors at play when it comes to lower labor force participation, including the state’s age demographics. Delaware is one of the oldest states in the country, with many retirees moving to Sussex County from neighboring states for lower housing costs.
The Delaware Department of Labor’s report is taken monthly during the calendar week that contains the 12th day. The state recorded 21,000 unemployed people last month, an decrease of 300 people over August.
The state’s three counties saw differing rates of unemployment in September, with New Castle, Kent and Sussex counties reporting rates of 3.4%, 3.9% and 3.1% respectively – although those statistics aren’t seasonally adjusted.
Wilmington and Dover, the state’s two most populous cities, still have relatively high unemployment rates with a 5.5% rate cited in the northern city, while 5.1% of workers were unemployed in the state’s capital.
Leading job gains last month was the financial services, which added 500 jobs. It was followed by the construction sector, which added 400 jobs. The government sector added 300 jobs and manufacturing, professional services and the hospitality sector each added 100 jobs.
The trades, transportation and utilities led in job losses with 300 jobs last month. It was followed by private education and health care which lost 200; and other services which lost 200.