diff --git a/nodepool/stats.py b/nodepool/stats.py
index 1c17cd727..7bdeee555 100755
--- a/nodepool/stats.py
+++ b/nodepool/stats.py
@@ -104,6 +104,12 @@ class StatsReporter(object):
             key = 'nodepool.provider.%s.nodes.%s' % (provider.name, state)
             states[key] = 0
 
+        # Initialize label stats to 0
+        for label in provider.getSupportedLabels():
+            for state in zk.Node.VALID_STATES:
+                key = 'nodepool.label.%s.nodes.%s' % (label, state)
+                states[key] = 0
+
         for node in zk_conn.nodeIterator():
             # nodepool.nodes.STATE
             key = 'nodepool.nodes.%s' % node.state
diff --git a/nodepool/tests/fixtures/node_no_min_ready.yaml b/nodepool/tests/fixtures/node_no_min_ready.yaml
index 8568ad8f2..0a848e6e5 100644
--- a/nodepool/tests/fixtures/node_no_min_ready.yaml
+++ b/nodepool/tests/fixtures/node_no_min_ready.yaml
@@ -10,6 +10,8 @@ zookeeper-servers:
 labels:
   - name: fake-label
     min-ready: 0
+  - name: fake-label2
+    min-ready: 0
 
 providers:
   - name: fake-provider
@@ -34,6 +36,10 @@ providers:
             diskimage: fake-image
             min-ram: 8192
             flavor-name: 'Fake'
+          - name: fake-label2
+            diskimage: fake-image
+            min-ram: 8192
+            flavor-name: 'Fake'
 
 diskimages:
   - name: fake-image
diff --git a/nodepool/tests/test_launcher.py b/nodepool/tests/test_launcher.py
index 492f84ed6..27c3ec34f 100644
--- a/nodepool/tests/test_launcher.py
+++ b/nodepool/tests/test_launcher.py
@@ -84,6 +84,28 @@ class TestLauncher(tests.DBTestCase):
         self.assertReportedStat('nodepool.label.fake-label.nodes.ready',
                                 value='1', kind='g')
 
+        # Verify that we correctly initialized unused label stats to 0
+        self.assertReportedStat('nodepool.label.fake-label2.nodes.building',
+                                value='0', kind='g')
+        self.assertReportedStat('nodepool.label.fake-label2.nodes.testing',
+                                value='0', kind='g')
+        self.assertReportedStat('nodepool.label.fake-label2.nodes.ready',
+                                value='0', kind='g')
+        self.assertReportedStat('nodepool.label.fake-label2.nodes.in-use',
+                                value='0', kind='g')
+        self.assertReportedStat('nodepool.label.fake-label2.nodes.used',
+                                value='0', kind='g')
+        self.assertReportedStat('nodepool.label.fake-label2.nodes.hold',
+                                value='0', kind='g')
+        self.assertReportedStat('nodepool.label.fake-label2.nodes.deleting',
+                                value='0', kind='g')
+        self.assertReportedStat('nodepool.label.fake-label2.nodes.failed',
+                                value='0', kind='g')
+        self.assertReportedStat('nodepool.label.fake-label2.nodes.init',
+                                value='0', kind='g')
+        self.assertReportedStat('nodepool.label.fake-label2.nodes.aborted',
+                                value='0', kind='g')
+
     def test_node_assignment_order(self):
         """Test that nodes are assigned in the order requested"""
         configfile = self.setup_config('node_many_labels.yaml')
diff --git a/releasenotes/notes/label-stats-1059f87162e461e1.yaml b/releasenotes/notes/label-stats-1059f87162e461e1.yaml
new file mode 100644
index 000000000..aa3193e66
--- /dev/null
+++ b/releasenotes/notes/label-stats-1059f87162e461e1.yaml
@@ -0,0 +1,5 @@
+---
+fixes:
+  - |
+    The nodes by label and state statistic gauges are now correctly reset to
+    zero if no node of a label and state exists.