The unemployment rate in Massachusetts in February rose two-tenths of a percent to 3.7%.
From the Executive Office of Labor and Workforce Development
BOSTON, MA – March 24, 2023 — The state’s February total unemployment rate was 3.7 percent, up two-tenths of a percentage point from the revised January estimate of 3.5 percent , the Executive Office of Labor and Workforce Development announced Friday.
The Bureau of Labor Statistics (BLS) preliminary job estimates indicate Massachusetts gained 3,000 jobs in February. This follows January’s revised gain of 8,900 jobs. The largest over-the-month private sector job gains were in Professional, Scientific, and Business Services, Education and Health Services, and Trade, Transportation, and Utilities. Employment now stands at 3,735,800. Since the employment trough in April 2020, Massachusetts gained 674,200 jobs.
From February 2022 to February 2023, BLS estimates Massachusetts gained 91,700 jobs. The largest over-the-year gains occurred in Professional, Scientific, and Business Services, Education and Health Services, and Leisure and Hospitality.
The February unemployment rate of 3.7 percent was 0.1 percentage points above the national rate of 3.6 percent reported by BLS.
The labor force increased by an estimated 11,700 from 3,729,800 in January, as 6,800 more residents were employed, and 4,800 more residents were unemployed over-the-month.
Over-the-year, the state’s seasonally adjusted unemployment rate was down by 0.2 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 0.2 percentage points to 65.0 percent over-the-month. Compared to February 2022, the labor force participation rate was down 0.4 percentage points.
February 2023 Employment Overview
Professional, Scientific, and Business Services gained 2,600 jobs over-the-month. Over-the-year, 25,200 were added.
Education and Health Services gained 2,500 jobs over-the-month. Over-the-year, 21,500 were added.
Trade, Transportation, and Utilities gained 300 jobs over-the-month. Over-the-year, 6,900 were added.
Construction gained 200 jobs over-the-month. Over-the-year, 2,800 were added.
Manufacturing gained 200 jobs over-the-month. Over-the-year, 500 were added.
Information gained 200 jobs over-the-month. Over-the-year, 1,100 were added.
Financial Activities gained 100 jobs over-the-month. Over-the-year, 7,500 were added.
Government lost 300 jobs over-the-month. Over-the-year, 9,700 were added.
Other Services lost 600 jobs over-the-month. Over-the-year, 4,200 were added.
Leisure and Hospitality lost 2,100 jobs over-the-month. Over-the-year, 12,200 were added.
Labor Force Overview
The February estimates show 3,604,200 Massachusetts residents were employed and 137,200 were unemployed, for a total labor force of 3,741,500. The unemployment rate at 3.7 percent was up 0.2 percentage points from the revised January rate of 3.5 percent. Over-the-month, the February labor force grew by 11,700 from 3,729,800 in January, with 6,800 more residents employed, and 4,800 more residents were unemployed. The labor force participation rate, the share of working age population employed and unemployed, increased by 0.2 percentage points to 65.0 percent over-the-month. The labor force was down 14,700 from the February 2022 estimate of 3,756,200, with 6,200 fewer employed residents, and 8,500 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.
Annual Year-End Revision (Benchmark)
In addition to monthly data revisions, BLS recalculates prior years’ labor market data through an annual process known as benchmarking. Benchmarking incorporates additional data sets from states’ unemployment insurance agencies and the U.S. Census Bureau to improve data quality.
This year’s annual year-end revisions and updated population controls from the U.S. Census Bureau resulted in changes to the labor force estimates from 2018 to 2022, with the most notable year-end revisions in 2021 and 2022; revisions are reflected in the previously aforementioned data in this press release. The year-end revisions showed the unemployment rates were lower, ranging from 0.1 to 0.8 percentage points, than previously published estimates for the months of May to December in 2021 and January to May in 2022. The largest downward year-end revision of 0.8 of a percentage point occurred in January and February 2022. In 2022, the unemployment rates for July to December were 0.2 to 0.4 percentage points higher than previously estimated. The year-end revised labor force participation rates from April 2021 to December 2022 were lower than previously published.
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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