Bay State Unemployment Rate Drops to 7.3 Percent

The unemployment rate in Massachusetts dropped to 7.3 percent in September, according to the Executive Office of Labor and Workforce Development. This marks the state's lowest unemployment rate since January 2009.

Nationally, the unemployment rate is at 9.1 percent and job growth is at 1.1 percent.

This decrease in unemployment follows a trend in the Bay State. So far this year, despite a stagnant beginning, almost 48,000 have been added. And compared with September 2010, there has been a 1.5 percent job growth rate. Private sector growth rate is at 2 percent.

"I think the trend is generally good," said Rena Kottcamp, director of research for the Massachusetts Division of Unemployment Assistance. "When you measure over the year, you’re seeing more substantial difference. [The unemployment rate] is down from 8.3 percent last September to now at 7.3 percent."

Nationally, the unemployment rate is 9.1 percent.

The Gains

Big gains were seen in several Massachusetts industries:

• Information industry saw an increase of 5,200 jobs. This is due largely because the Verizon strike ended, so striking workers are now being counted again.
• Business services saw an increase of 1,700 jobs in management.
• Scientific and technical jobs jumped by 1,200.
• Education services gained 3,500 jobs.
• Manufacturing gained 200 jobs, and manufacturing jobs were up 5,400 compared to September 2010.
• State government gained 1,300 jobs.

The Losses

Not all industries had good news.

• Trade, transportation and utilities saw a decrease of 3,500 jobs.
• Leisure and hospitality saw a decrease of 2,300 jobs, mostly in accomodation and food services.
• Construction lost 1,700 jobs.
• Local government lost 700 jobs.

Rise in Demand

The increase in jobs in certain fields has created a favorable environment for job seekers seldom seen since the recession began.

"We actually have a harder time finding people to fill the jobs we have, and we have a lot of jobs," said Jori Blumsack, chief operating officer at The Vesume Group, a staffing agency in North Andover. The Vesume Group that specializes in information technology, engineering, accounting and finance jobs. "We've only been in business for a little over two years, and we've always seen availability of jobs in those industries."

With the increase in demand for employees, the next step in job growth is when companies starting to pay more, Blumsack added.

"It's typical supply and demand," she said. "Employers are willing to pay more now to get the talent theyre looking for."

Another promising trend and indicator of employment growth is the transition from temporary to permanet staffing, something Blumsack has seen more of in recent months.

"We've seen a lot more permanent placement, which shows companies having more confidence in their business and willing to make commitment to their labor," Blumsack said.