Mississippi’s July unemployment rate held steady for a fourth straight month.

And while Mississippi saw the largest increase in unemployment in the country year over year at 0.9%, that’s not necessarily bad news.

The Bureau of Labor Statistics on Tuesday published updated state employment numbers that showed Mississippi’s unemployment rate at 4% from May through July. The national unemployment rate was 4.2% in July. 

“What we’re seeing is kind of a continuation of what we’ve seen for the past few months. In Mississippi as well as across the country, it seems to be kind of a no-hire, no-fire labor market,” said Corey Miller, Mississippi’s state economist. 

The increase in unemployment is likely due to a 1% increase in the labor force. Miller believes that the rise in real wages and decrease in inflation at the end of 2023 may have motivated people who were not working or looking for work to rejoin the labor force.

Mary Willoughby, Mississippi Department of Employment Security chief economist, said Mississippi’s unemployment rate has historically been above the national number but for the past few years it has been below. For Willoughby, this is an encouraging sign.

“Mississippi’s labor market is in good shape. It’s very stable and doing a good job,” said Willoughby.  

Labor force participation, those 16 and older either employed or actively seeking employment, has been a major concern for the state. Mississippi goes back and forth with West Virginia for lowest participation rate in the nation. Over the past year it has gone from 54.5% to around 56% for the past few months, a positive sign that more people are in the labor market. 

 ”It’s increasing, which means that more people think that they have the opportunity and there are opportunities within the state to get,” said Willoughby.

However, there is some concern that the market is slowing.

Nationwide, payroll employment, the number of positions companies have on their payroll, has not changed significantly since April 2025. This is a trend that is also seen in Mississippi where payroll employment has remained around 1.2 million since January.

“I think employers are reluctant to let any employees go right now, because they had to work really hard to get people back into the labor force,” said Miller. “At the same time, they’re a little apprehensive about trying to hire people because of just a lot of uncertainty in the economy with different policy changes.”