BOSTON, MA – August 18, 2023 – The latest employment figures from the Executive Office of Labor and Workforce Development reveal positive trends for Massachusetts as the state’s unemployment rate dropped to 2.5 percent in July, down by 0.1 percentage point from the revised June estimate of 2.6 percent.
According to the Bureau of Labor Statistics (BLS) preliminary job estimates, Massachusetts experienced a notable gain of 12,500 jobs in July. This growth follows June’s revised gain of 1,400 jobs. The private sector, in particular, saw significant job gains in sectors including Trade, Transportation, and Utilities, Education and Health Services, and Information. The state’s total employment now stands at 3,781,200, reflecting an impressive recovery of 719,600 jobs since the employment low in April 2020.
The year-over-year data from July 2022 to July 2023 also paints an encouraging picture, with Massachusetts adding a substantial 90,300 jobs during this period. The most substantial gains occurred in the Education and Health Services, Professional, Scientific, and Business Services, and Leisure and Hospitality sectors.
It’s worth noting that Massachusetts’ July unemployment rate of 2.5 percent stands significantly below the national average of 3.5 percent, as reported by the BLS. The state’s labor force experienced a slight decrease, with an estimated 5,200 individuals exiting the workforce in July. This reduction was driven by 1,200 fewer employed residents and 4,000 fewer unemployed residents compared to the previous month.
The state’s labor force participation rate, which measures the share of residents actively seeking work or employed, experienced a minor drop of 0.1 percentage point to 64.5 percent over the month. When compared to July 2022, the labor force participation rate showed a decline of 0.6 percentage points.
In terms of specific sectors, the Government, Trade, Transportation, and Utilities, Education and Health Services, Information, Leisure and Hospitality, Professional, Scientific, and Business Services, Other Services, Construction, and Financial Activities industries all exhibited positive growth in terms of jobs added both over the month and year-over-year.
However, the Manufacturing sector faced a loss of 900 jobs over the month and 1,200 jobs over the year.
The July employment overview underscores a resilient job market in Massachusetts, and the decline in unemployment rates and steady job growth signal a positive trajectory for the state’s economy.
The statistics are based on a combination of household and employer surveys, with different methodologies accounting for the differences in monthly trends between unemployment rate and job estimates.