Monday, July 22, 2019

Notes on the Massachusetts Employment Situation for June 2019: U-Rate: 3.0 %; Jobs: +9,800

OVERVIEW

  • The state’s total unemployment rate for May remained at 3.0 percent according to the Executive Office of Labor and Workforce Development.  The Commonwealth reports that 9,800 jobs were added in June.  
  • From June 2018 to June 2019, the Bureau of Labor Statistics estimates that Massachusetts added 35,500 jobs.  However, the Labor Force Participation rate declined one-tenth of a percentage point to 67.7.
  • Over the month, the private sector added 8,400 jobs as gains occurred in Education and Health Services; Leisure and Hospitality; Financial Activities; Manufacturing; Information and Trade, Transportation and Utilities.  
  • Professional, Scientific and Business Services added 1,000 jobs with 7,100 jobs added over the past 12 months. 
  • After losing 300 jobs in May, the Education and Health Services sector added 5,100 jobs Over the year, this sector gained 21,500 jobs.
  • Manufacturing gained 300 jobs in June but has lost 1,600 jobs over the year. 
  • The Construction sector lost 900 jobs and has lost 3,400 over the year. 
  • Trade, Transportation and Utilities added 100 jobs Over the year, the sector lost 800 jobs.
  • Financial Activities gained 1,300 jobs while Information added 200 jobs in June; year over year, the sectors gained 1,300 and 1,700 jobs, respectively. 
  • Government added 1,400 jobs in June. Over the past 12 months this sector has gained 4,200 jobs.
  • The 3.0 percent rate in Massachusetts is seven-tenths of a point lower than the national rate of 3.7 percent.
  • According to the BLS, Vermont enjoyed the lowest unemployment rate in the nation. (See Table A.)


ANALYSIS

Following a loss of jobs in May, Massachusetts bounced back with the addition of 9,800 jobs in June. 

"BLS estimates there are now 3,682,400 jobs in the Commonwealth, Labor and Workforce Development Secretary Rosalin Acosta said. "Job gains both over the month and over the year continue to be led by the Education and Health services sector which added 21,500 jobs and has grown by 2.7 percent over the last year."  

The figures for other sectors, however, are not so rosy. 

Over the past year the Retail, Mining and Construction, Manufacturing, Trade Transportation and Utilities and Whole Trade combined lost 10,700 jobs. 

But Education and Health Services doubled that amount for the year. Other sectors such as Leisure and Hospitality and Professional, Scientific and Business Services also contributed to strong private sector job growth.  

The combined federal, state and local government gained 4,200 jobs over the year (although state government lost 900 jobs during that period). Government employment in Massachusetts has been remarkably stable even through the Great Recession (See Chart A). 

Meanwhile,wages in the sector are rising with state government weekly wages nearly matching overall average for all workers (See Chart B). 

Pay for federal work is also growing. In January 2006 a federal worker in the Bay State earned $1,224; in December 2018 he an earned $1,712 average wage. During the same period, the average weekly wage for Massachusetts worker rang in at $1,046 and rose to $1,457 by the end of 2018. 


Chart A:  Government Employment in Massachusetts: Federal, State & Local 2006-2019




Chart B:  Government Wages in Massachusetts: Federal, State & Local 2006-2019





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