OVERVIEW
- The state’s total unemployment rate increased to 4.2 percent in May from the April rate of 3.9 percent.
- The April estimate was revised to a loss of 800 jobs per the Bureau of Labor Statistics estimate provided to the Executive Office of Labor and Workforce Development (EOLWD).
- The labor force increased by 17,100 residents in April, as 4,900 more residents were employed and 12,200 more residents were unemployed over the month.
- Education and Health Services added 2,500 jobs over the month. Over the year, Education and Health Services gained 19,100 jobs.
- Information added 500 jobs over the month; over the year, Information gained 4,300 jobs.
- Over the year, federal, state and local government combined gained 5,400 jobs.
- Professional, Scientific, Technical Service subsector lost 2,100 jobs between April and May; while retail trade lost 1,200 jobs.
- Construction added 300 jobs in May; since last year the sector has added 4,800 jobs.
- Trade, transportation and utilities lost 800 jobs in May but gained 3,900 over the past year.
ANALYSIS
From May 2016 to May 2017, the Bureau of Labor Statistics estimates Massachusetts has added 58,300 jobs. The state’s labor force participation rate – the total number of residents 16 or older who worked or were unemployed and actively sought work in the last four weeks – increased thus explaining the higher jobless rate. “During 2017 Massachusetts continues to experience large increases in the labor force. May’s labor force participation rate of 66.7%, the highest rate since October 2008, allows for ongoing economic growth. As the pool of people actively searching for work increases, our workforce development agencies remain focused on ensuring that the next generation of job seekers have access to next generation job training,” outgoing Labor and Workforce Development Secretary Ronald L. Walker, II said. The LFP over the year has increased 1.7 percent. However, the state’s unemployment rate of 4.2 moved toward the national rate of 4.3 percent. The state’s retail sector lost 1,200 but has gained 3,200 jobs since last year. Manufacturing continues to decline with 200 lost jobs in May and 1,900 since last year. At the end of December 2016, the state’s unemployment rate stood at a low of 3.1 percent. That rate was much lower than the rates for medium-sized cities in the Commonwealth (see table below).
