BOSTON, MA – March 7, 2025 — The state’s January total unemployment rate was 4.2 percent, a 0.1 percentage point increase from the revised December estimate of 4.1 percent , the Executive Office of Labor and Workforce Development announced Friday. The Massachusetts unemployment rate was 0.2 percentage points above the national rate of 4.0 percent reported by the Bureau of Labor Statistics (BLS). Over-the-year, the state’s seasonally adjusted unemployment rate was up by 0.5 percentage points. The February unemployment and job estimates will be released on March 28, 2025.
The labor force increased by an estimated 9,600 from the revised estimate of 3,916,400 in December, with 6,800 more residents employed and 2,900 more residents unemployed over-the-month. 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 – increased by 0.2 percentage points to 66.5 percent from the revised estimate of 66.3% for December. Compared to January 2024, the labor force participation rate increased by 0.6 percentage points over-the-year.
The BLS preliminary job estimates for Massachusetts increased by 3,200 jobs in January. This follows December’s revised gain of 7,000 jobs. The largest over-the-month private sector job gains were in Leisure and Hospitality, Financial Activities, and Other Services. Employment now stands at 3,725,400. Massachusetts gained 668,600 jobs since the employment low in April 2020.
From January 2024 to January 2025, BLS estimates Massachusetts gained 400 jobs. The largest over-the-year gains occurred in Education and Health Services, Leisure and Hospitality, and Government.
January 2025 Employment Overview
Leisure and Hospitality gained 4,000 jobs over-the-month. Over-the-year, 7,500 were added.
Government gained 1,100 jobs over-the-month. Over-the-year, 5,400 were added.
Financial Activities gained 1,000 jobs over-the-month. Over-the-year, 800 were added.
Manufacturing gained 400 jobs over-the-month. Over-the-year, 3,800 were lost.
Other Services gained 400 jobs over-the-month. Over-the-year, 700 were lost.
Construction gained 200 jobs over-the-month. Over-the-year, 6,700 were lost.
Professional, Scientific, and Business Services lost 200 jobs over-the-month. Over-the-year, 6,500 were lost.
Trade, Transportation, and Utilities lost 500 jobs over-the-month. Over-the-year, 3,700 were lost.
Information lost 1,000 jobs over-the-month. Over-the-year, 3,100 were lost.
Education and Health Services lost 2,200 jobs over-the-month. Over-the-year, 11,100 were added.
Labor Force Overview
The January estimates show 3,761,200 Massachusetts residents were employed and 164,900 were unemployed, for a total labor force of 3,926,000. The unemployment rate at 4.2 percent was 0.1 percentage point higher than the revised December rate of 4.1 percent. Over-the-month, the January labor force increased by 9,600 from 3,916,400 in December, with 6,800 more residents employed and 2,900 more residents unemployed. The labor force participation rate, the share of the working age population employed and unemployed, increased by 0.2 percentage points to 66.5 percent from the revised estimate of 66.3% for December. The labor force was up 64,900 from the January 2024 estimate of 3,861,100 following the annual revision, with 44,100 more employed residents, and 20,900 more unemployed residents.
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.
The preliminary February 2025 and revised January 2025 unemployment rate, labor force, and job estimates for Massachusetts will be released on Friday, March 28, 2025. See the 2025 Media Advisory for complete list of release dates.
Source: Massachusetts Executive Office of Labor and Workforce Development
