Massachusetts Employment Situation: Unemployment rate rises ever so slightly to 3.6 percent with 6,400 jobs added in August 2022

BOSTON, MA – September 16, 2022 – The state’s August total unemployment rate at 3.6 percent increased by one-tenth of a percentage point over-the-month, the Executive Office of Labor and Workforce Development announced Friday.

The Bureau of Labor Statistics’ preliminary job estimates indicate Massachusetts gained 6,400 jobs in August. This follows last month’s revised gain of 10,500 jobs. The largest over the month private sector job gains were in Leisure and Hospitality, Trade, Transportation, and Utilities, and Education and Health Services. Employment now stands at 3,680,100. Since the employment trough in April 2020, Massachusetts gained 632,500 jobs.

From August 2021 to August 2022, BLS estimates Massachusetts gained 126,400 jobs. The largest over the year gains occurred in Leisure and Hospitality, Professional, Scientific, and Business Services, and Education and Health Services.

The August unemployment rate of 3.6 percent was one-tenth of a percentage point below the national rate of 3.7 percent reported by the Bureau of Labor Statistics.

The labor force decreased by an estimated 2,200 from 3,765,500 in July, as 6,300 fewer residents were employed, and 4,100 more residents were unemployed over-the-month.

Over-the-year, the state’s seasonally adjusted unemployment rate was down by 1.9 percentage points.

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 unchanged at 65.8 percent. Compared to August 2021, the labor force participation rate was up 0.1 percentage point.

Construction equipment on Orleans Street, August 2022. Photo credit: Frank Conte, EastBoston.com

August 2022 Employment Overview

Leisure and Hospitality gained 5,300 over the month. Over the year, 34,300 were added.

Trade, Transportation, and Utilities gained 2,300 over the month. Over the year, 17,800 were added.

Education and Health Services gained 1,900 over the month. Over the year, 29,200 were added.

Financial Activities gained 1,000 over the month. Over the year, 800 were lost.

Construction gained 600 over the month. Over the year, 10,000 were added.

Information gained 5,00 over the month. Over the year, 6,100 were added.

Professional, Scientific, and Business Services lost 500 over the month. Over the year, 31,200 were added.

Other Services lost 5,00 over the month. Over the year, 5,300 were added.

Manufacturing lost 800 over the month. Over the year, 7,000 were added.

Government lost 3,400 over the month. Over the year, 13,700 were lost.

Labor Force Overview

The August estimates show 3,628,300 Massachusetts residents were employed and 135,000 were unemployed, for a total labor force of 3,763,300. The unemployment rate was up 0.1 percentage point at 3.6 percent from the July rate of 3.5 percent.
Over-the-month, the August labor force was down by 2,200 from 3,765,500 in July, with 6,300 fewer residents employed and 4,100 more residents unemployed.

The labor force participation rate, the share of working age population employed and unemployed, remained at 65.8 percent. The labor force was up 4,300 from the August 2021 estimate of 3,758,900, as 75,000 more residents were employed, and 70,700 fewer residents were unemployed.

The unemployment rate is based on a monthly sample of households. The job estimates are derived from a monthly sample survey of employers. As a result, the two statistics may exhibit different monthly trends.

NOTES:

The labor force is the sum of the numbers of employed residents and those unemployed, that is residents not working but actively seeking work in the last four weeks. Estimates may not add up to the total labor force due to rounding.

For further information on seasonal adjustment methodology, please refer to the Bureau of Labor Statistics website https://www.bls.gov.

Detailed labor market information is available at www.mass.gov/economicresearch.

East Boston