Jobs Decrease by 4,000 in May
Boston – The Executive Office of Labor and Workforce Development reported today that the total unemployment rate in May was 7.6 percent, down from 7.8 percent in April. The preliminary May job estimates show 3,224,800 jobs in Massachusetts, a decrease of 4,000 jobs. Government lost 2,600 jobs and the private sector lost 1,400.
Job gains occurred in Professional, Scientific, and Business Services; Construction; Manufacturing; Education and Health Services; Other Services; and Information. Leisure and Hospitality; Government; Trade, Transportation, and Utilities; Financial Activities; and Mining and Logging lost jobs. The May job loss follows a revised 20,300 jobs gain in April, previously reported as a 19,500 job gain.
Over-the-year, jobs are up 27,500 (+0.9 percent) with private sector jobs up 44,800 (+1.6 percent). Year-to-date 31,000 jobs have been added in the Commonwealth with 39,200 in private sector jobs.
At 7.6 percent, the Massachusetts unemployment rate is the lowest it has been since February 2009, and remains well below the 9.1 percent national rate. In May, the decrease in those unemployed generated a decline in the unemployment rate, continuing the downward trend in the unemployment rate for the last four months.
Professional, Scientific and Business Services gained 2,300 jobs (+0.5 percent), the sixth consecutive monthly gain for the sector. Within this sector, Professional, Scientific and Technical Services gained 2,000 jobs (+0.8 percent); Management of Companies and Enterprises added 1,000 jobs (+1.7 percent); and Administrative, Support and Waste Management Services, lost 700 jobs (-0.4 percent). Over-the-year, Professional, Scientific and Business Services added 9,900 jobs (+2.1 percent) with the largest gain in Professional, Scientific and Technical Services which added 6,900 jobs (+2.8 percent).
The Construction sector gained 1,000 jobs (+0.9 percent). Over-the-year, this sector added 1,200 jobs (1.1 percent).
Manufacturing sector jobs were up 900 (+0.4 percent) as Durable Goods added 500 jobs (+0.3 percent) and Non-Durable Goods jobs were up 400 (+0.5 percent). Over-the-year, Manufacturing has gained 1,300 jobs (+0.5 percent) due to the gain in Durable Goods, 2,600 jobs (+1.6 percent), more than offsetting the loss of 1,300 jobs (-1.5 percent) in Non-Durable Goods.
The Education and Health Services sector added 800 jobs (+0.1 percent) as Health Care and Social Assistance added 900 jobs (+0.2 percent) while Educational Services lost 100 jobs (-0.1 percent). Over-the-year, Education and Health Services jobs are up 15,200 (+2.3 percent) as Health Care and Social Assistance added 10,800 jobs (+2.2 percent) and Educational Services added 4,400 jobs (+2.7 percent).
Other Services added 600 jobs (+0.5 percent). Over-the-year jobs in Other Services are up 200 (+0.2 percent).
Information gained 100 jobs (+0.1 percent). Over-the-year, jobs are up 3,000 (+3.5 percent).
The Leisure and Hospitality sector lost 3,300 jobs (-1.0 percent), the first monthly loss since January 2011. Arts, Entertainment, and Recreation gained 300 jobs (+0.6 percent) while Accommodation and Food Services lost 3,600 jobs (-1.3 percent). Over-the-year, jobs in Leisure and Hospitality are up 10,600 (+3.5 percent) as Accommodation and Food Services gained 7,500 jobs (+2.9 percent) and Arts, Entertainment and Recreation added 3,100 jobs (+6.4 percent).
Trade, Transportation and Utilities lost 2,400 jobs (-0.4 percent) following a gain of 3,200 jobs in April. Wholesale Trade gained 600 jobs (+0.5 percent) as Retail Trade lost 2,100 jobs (-0.6 percent) and Transportation, Warehousing and Utilities lost 900 jobs (-1.1 percent). Over-the-year Trade, Transportation and Utilities jobs are up 3,200 (+0.6 percent) with Retail Trade accounting for most of the growth.
Financial Activities lost 1,300 jobs (-0.6 percent) following a 1,700 gain in April. The loss was nearly equal between the components as Real Estate and Rental and Leasing was down 700 jobs (-1.7 percent) while Finance and Insurance lost 600 jobs (-0.4 percent). Over-the-year, Financial Activities has gained 300 jobs (+0.1 percent).
Mining and Logging employment was down 100 jobs (-8.3 percent). Over-the-year, jobs in this sector were down 100 (-8.3 percent).
Government lost 2,600 jobs (-0.6 percent) in May. Federal Government added 1,000 jobs (+2.2 percent) while jobs were unchanged in Local Government, and State Government lost 3,600 jobs (-2.9 percent) due to larger than expected seasonal losses in educational services. Over-the-year, Government has lost 17,300 jobs (-3.9 percent) with 12,500 jobs lost (-21.3 percent) in Federal Government, 3,700 jobs (-3.0 percent) lost in State Government and 1,100 jobs (-0.4 percent) lost in Local Government.
Labor Force Overview
The May estimates show 3,231,900 Massachusetts residents were employed and 265,600 were unemployed, for a total labor force of 3,497,500. Since October 2009, there are 63,500 more residents employed and 38,800 fewer residents unemployed as the labor force expanded by 24,700. Totals may not add exactly due to rounding.
The unemployment rate is based on a monthly sample of households, while the job estimates are derived from a monthly sample survey of employers. As a result, the two statistics may exhibit different trends.
Beginning with the March 2011 estimates, the Bureau of Labor Statistics (BLS) has assumed responsibility for the production of the CES State and sub-state jobs estimates. BLS has also implemented methodological changes which may increase the month to month variability of the estimates. (See Procedures Changes for producing (CES) estimates.)