Mass. Loses 6,400 Jobs in May; Unemployment Rate Unchanged

MASSACHUSETTS—While more than 30,000 jobs have been added since the beginning of the year, the state's unemployment rate remained unchanged in May, with a loss of 6,400 jobs, according to the Executive Office of Labor and Workforce Development.

The state’s total unemployment rate remained at 4.2 percent in May. The preliminary May job estimates from the Bureau of Labor Statistics indicate that the May job losses were impacted by a temporary labor dispute in the Information sector.

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BLS also revised upward the state’s over the month job gains in April, reporting 15,200 jobs were added compared to the 13,900 job gain originally reported. Year-to-date, December 2015 to May 2016, Massachusetts has added 30,500 jobs, said the release.

The Leisure and Hospitality sector was the only to experience jobs gains in the month.

At 4.2 percent, the unemployment rate is down 0.7 percent over the year, with the state’s seasonally adjusted unemployment rate dropping from 4.9 percent in May 2015. There were 26,600 fewer unemployed persons and 49,000 more employed persons over the year compared to May 2015, said the Office of Labor and Workforce Development in a release.

The Commonwealth’s May unemployment rate remains lower than the national rate of 4.7 percent reported by the Bureau of Labor Statistics.

“The labor force continues to grow, with 7,000 more employed residents and 2,000 fewer unemployed residents in May,” Labor and Workforce Development Secretary Ronald L. Walker, II said in a statement. “Education and Health Care, and Professional, Scientific and Business Services sectors continue to generate the most jobs in the Commonwealth.”

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 – remained 65.0 percent. The labor force participation rate over the year has decreased 0.2 of a percentage point compared to May 2015.

Over the year, the largest private sector percentage job gains were in Construction; Professional, Scientific and Business Services; Other Services; and Leisure and Hospitality.

May 2016 Employment Overview via the Office of Labor and Workforce Development:

• Leisure and Hospitality gained 4,800 jobs (+1.4 percent) over the month. Over the year, Leisure and Hospitality added 6,600 (+1.9 percent) jobs.
• Information lost 4,300 (-4.8 percent) jobs over the month. Telecommunications was impacted by a temporary labor dispute. Over the year, Information lost 2,300 (-2.6 percent) jobs.
• Construction lost 1,700 (-1.1 percent) jobs over the month. Over the year, Construction has gained 9,900 (+7.2 percent) jobs.
• Trade, Transportation and Utilities lost 1,200 (-0.2 percent) jobs over the month. Over the year, Trade, Transportation and Utilities added 4,000 (+0.7 percent) jobs.
• Education and Health Services lost 1,100 (-0.1 percent) jobs over the month. Over the year, Education and Health Services gained 13,600 (+1.8%) jobs.
• Professional, Scientific and Business Services lost 1,000 (-0.2 percent) jobs over the month. Over the year, Professional, Scientific and Business Services added 11,700 (+2.2 percent) jobs.
• Financial Activities lost 600 (-0.3%) jobs over the month. Over the year, Financial Activities gained 3,000 (+1.4 percent) jobs.
• Other Services lost 600 (-0.4 percent) jobs over the month. Over the year, Other Services are up 2,900 (+2.2 percent) jobs.
• Manufacturing lost 600 (-0.2 percent) jobs over the month. Over the year, Manufacturing lost 1,100 (-0.4 percent) jobs.
• Government jobs level remained unchanged (0.0 percent) over the month. Over the year, Government gained 5,200 (+1.2 percent) jobs.