By FRANK CONTE
What to make of the latest Massachusetts jobs numbers? Last month the state’s Executive Office of Labor and Workforce Development highlighted the growth of jobs and the increase in the number of employees in Massachusetts. It also touted the state’s above-the-national- average labor force participation rate, an important metric that shows how engaged workers are with the job market. At 66.9 percent, the state’s labor force participation rate is 4.5 percentage points higher than the national average and is one reason why the state’s unemployment rate increased to 4.8 percent in May.
The administration also boasted about the increase in payroll jobs for the third consecutive month with the state adding 14,000 jobs since February, a respectable number.
The latest figures based on data collection from the federal Bureau of Labor Statistics are preliminary and subject to revision.
But a closer look at the state employment situation reveals some troubling trends. The state’s unemployment rate ticked up to 4.8 percent, marking the fifth consecutive month of increases in the rate. True, the labor force expanded and is better than neighboring states. The increase in the labor force is driven by youth and young adults who, by some accounts, will have a tougher time finding good paying jobs. Moreover, there are more unemployed workers in May (190,000) than there were in January (165,000).
Most of the growth in jobs in May came from low-paying leisure and hospitality sector (a gain of 1,400 jobs) and better paid financial activities which gained 1,100 jobs and showed year-over-year gains. The construction and education and health services sectors also gained jobs during the month of May. However, since the past year, construction has lost 4,000 jobs. And while education and health services (heavily dependent on government spending) gained 7,100 jobs, manufacturing continued to lose ground in service-oriented Massachusetts. And for all the fury about job cuts, the government sector only lost 500 jobs in May it gained 2,300 jobs over the year.
The most critical and troubling trends are the losses in high-paying professional, scientific and business services which tallied a loss of 4,300 jobs. This sector has been the “bread and butter” of high wages and salaries for which the Bay State has been competitive for decades. There is evidence — collected by the Pioneer Institute — that shows the state is losing highly-skilled private sector jobs and economic growth to other states.
There is little light at the end of the tunnel. According to the Boston Business Journal, 18 of the state’s vaunted biotech companies laid off “at least 1,300 Bay State workers.” The same journal also reported this week that a Pittsfield concrete company Unistress is laying off more than 200 union jobs and don’t expect to recall them any time before next January. Microsoft which has a smaller presence is Massachusetts than elsewhere is also shedding jobs.
Much is being made of the many “investments” in the state budget heading to the Governor’s desk. But that’s not where the primary focus should be. Real economic growth is driven by the private sector and Beacon Hill needs to improve the business climate here before growing government spending at the expense of private enterprise.
This article appeared as an unsigned editorial in the Wakefield Daily Item, July 7, 2025.
