MA Employment Situation: 4.2 Percent 2,900 jobs added in May

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).

 

Massachusetts adds 3,900 jobs in April 2017 as unemployment rate ticks up to 3.9 percent

OVERVIEW

• In its preliminary estimates, the Bureau of Labor Statistics suggests that Massachusetts added 3,900 jobs in April. The job gains over the previous month (March 2017) occurred in Professional, Scientific, and Business Services; Education and Health Services; Trade, Transportation, and Utilities; Other Services; Information; and Manufacturing.
• The state’s labor force participation rate increased to 66.5 percent from 65.9 percent with an increase of 33,000 entrants into the job market.
• Government lost 1,000 jobs in April but since last year the sector has added 7,700 jobs or 1.7 percent.

ANALYSIS 

• More workers are coming off the sidelines to enter the job market. The state’s unemployment rate for April 2017 increased only because the labor force saw an increase of 33,000 workers or 1.5 percent since last year. This represents a healthier view of full employment. The unemployment rate of 3.9 percent is still lower than the national rate of 4.4 percent. Since April 2016, the Administrative & Support, Waste Management, and Remediation sector added 7,000 jobs, the percentage leader at 3.9 percent. The Health Care and Social Assistance subsector continues to grow adding 18,300 jobs — at a 3.0 percent clip. Education Services has remained flat adding zero jobs while the Arts, Entertainment and Recreation subsector lost 1,300 jobs. Local government remains a strong jobs generator with 5,800 jobs. Despite well-known struggles, the Retail sector added 4,100 since last April.

A brief analysis of last week's Massachusetts jobs report

My analysis of last week's MA Jobs Number and URate.

March 2017 Jobs Report: Rate drops to 4.5 but economy only adds 98,000 jobs

OVERVIEW

• The unemployment rate declined to 4.5 percent in March while payrolls expanded by 98,000, according to the Bureau of Labor Statistics.
• The Labor Force Participation (LFP) rate remained at 63.0 percent. 
• The number of persons working part-time for economic reasons was little changed at 5.6 million. 
• The number of those individuals “marginally attached to the labor force,” also remained unchanged.
• Retail jobs lost 30,000 positions in March.  General merchandise stores declined by 35,000. 
• Following gains of 219,000 in February and 216,000 in January, March employment only edged up by 98,000. 
• Mining added 11,000 bouncing back from an October 2016 low. 
• Professional and Business Services led the gains by adding 56,000 jobs. BLS reports the growth in this sector has kept pace with the average monthly gain over the past 12 months.
• The previous two months’ figures were revised downward. January’s report was revised downward from 238,000 to 216,000 and February’s report was revised downward from 235,000 to 219,000 jobs. 

ANALYSIS

The unexpectedly weak jobs report— along with the downward revisions to January and February numbers —suggest there may be something more at work than last month’s weather. Wall Street expected a gain of 175,000 jobs.

Moreover, today’s report stands in stark contrast with the ADP report released this week estimated the addition of 263,000 jobs in March.

Professional and Business Services continued to notch gains on the strength of “services to buildings and dwellings (+17,000) and architectural and engineering services (+7,000). The Health Care sector continues to post jobs gains with 20,000 per month for 2017. Construction employment changed little, however today’s report noted that jobs have “been trending up since late last summer, largely among specialty trade contractors and in residential building.”

The average workweek was unchanged at 34.3 hours. Average hourly earnings for all private sector employees increased by 5 cents to $26.14, following a 7-cent increase in February.

Over the past year, these earnings have increased by 2.7 percent.  The retail sector continues to struggle, with major firms announcing job cuts and store closings. Approximately 15.8 million workers have jobs in the retail sector, overall.  

Of that number, 3.1 million are in general merchandise stores representing 19.6 percent of the retail workforce. The slowly growing but influential and tech-driven “non-store” retail sector comprises 3.5 percent of the retail workforce.  In March 2016 nonstore retailers employed 521,800 workers compared to 555,700 workers today, a gain of 33,900 workers.

PDF version of Research Note

February Report: Massachusetts adds 10,100 jobs; U-Rate at 3.4 percent

My latest research note, on the most recent Massachusetts jobs release, can be found here.