Massachusetts Unemployment Rate Drops Slightly in January

Keith Thibault March 10, 2023 Comments Off on Massachusetts Unemployment Rate Drops Slightly in January

The unemployment rate in Massachusetts in January dropped one-tenth of a percent to 3.6%.

From the Executive Office of Labor and Workforce Development

BOSTON, MA – March 10, 2023 — The state’s January total unemployment rate was 3.6 percent, down one-tenth of a percentage point from the revised December estimate of 3.7 percent , the Executive Office of Labor and Workforce Development announced Friday.

The Bureau of Labor Statistics (BLS) preliminary job estimates indicate Massachusetts gained 19,600 jobs in January. This follows December’s revised gain of 3,800 jobs. The largest over-the-month private sector job gains were in Education and Health Services, Trade, Transportation, and Utilities, and Leisure and Hospitality. Employment now stands at 3,743,500. Since the employment trough in April 2020, Massachusetts has gained 681,900 jobs.

From January 2022 to January 2023, BLS estimates Massachusetts gained 117,200 jobs. The largest over-the-year gains occurred in Professional, Scientific, and Business Services, Leisure and Hospitality, and Education and Health Services.

The January unemployment rate of 3.6 percent was two-tenths of a percentage point above the national rate of 3.4 percent reported by BLS.

The labor force increased by an estimated 3,900 from 3,726,400 in December, with 8,100 more residents employed, and 4,200 fewer residents unemployed over-the-month.

Over-the-year, the state’s seasonally adjusted unemployment rate was down by 0.4 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 – increased by 0.1 percentage point to 64.8 percent over-the-month. Compared to January 2022, the labor force participation rate was down five-tenths of a percentage point.

January 2023 Employment Overview
Education and Health Services gained 5,000 jobs over-the-month. Over-the-year, 16,400 were added.

Trade, Transportation, and Utilities gained 3,200 jobs over-the-month. Over-the-year, 16,300 were added.

Leisure and Hospitality gained 3,000 jobs over-the-month. Over-the-year, 23,300 were added.

Professional, Scientific, and Business Services gained 2,300 jobs over-the-month. Over-the-year, 27,400 were added.

Government gained 1,900 jobs over-the-month. Over-the-year, 12,200 were added.

Manufacturing gained 1,500 jobs over-the-month. Over-the-year, 1,200 were added.

Construction gained 1,400 jobs over-the-month. Over-the-year, 4,000 were added.

Other Services gained 700 jobs over-the-month. Over-the-year, 5,400 were added.

Information gained 500 jobs over-the-month. Over-the-year, 3,000 were added.

Financial Activities lost 0 jobs over-the-month. Over-the-year, 7,900 were added.

Labor Force Overview
The January estimates show 3,597,700 Massachusetts residents were employed and 132,600 were unemployed, for a total labor force of 3,730,300. The unemployment rate at 3.6 percent was down 0.1 percentage point from the revised December rate of 3.7 percent. Over-the-month, the January labor force grew by 3,900 from 3,726,400 in December, as 8,100 more residents were employed, and 4,200 fewer residents were unemployed. The labor force participation rate, the share of working age population employed and unemployed, increased by 0.1 of a percentage point to 64.8 percent over-the-month. The labor force was down 22,300 from the January 2022 estimate of 3,752,600, with 2,900 fewer employed residents, and 19,300 fewer 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.

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