Boston – The Executive Office of Labor and Workforce Development reported this week that the preliminary July job estimates show an increase of 12,700 jobs, for a total of 3,246,800 jobs in Massachusetts. The private sector gained 11,600 jobs. The July total unemployment rate remained at 7.6 percent, well below the national rate of 9.1 percent.
Six of the ten private sectors added jobs in July with the largest over the month gains in Education and Health Services; Other Services; Trade, Transportation and Utilities; Manufacturing; Professional and Business Services; and Financial Activities. The July job gain follows a revised 9,400 job gain in June, previously reported as a 10,400 job gain.
Over-the-year (July 2010 to July 2011), jobs are up 56,800, for a growth rate of 1.8 percent. Private sector jobs are up 61,900, a growth rate of 2.2 percent, with gains in nine of the ten sectors. Year-to-date, (December 2010 to July 2011), 53,000 jobs have been added in the Bay State with 58,200 jobs in the private sector.
Education and Health Services gained 3,000 jobs (+0.4%) as Health Care and Social Assistance added 2,600 jobs (+0.5%) and Educational Services gained 400 (+0.2%) jobs. Over-the-year, this sector has added 17,300 (+2.6%) jobs with Health Care and Social Assistance gaining 15,000 (+3.0%) jobs and Educational Services 2,300 (+1.4%) jobs.
Other Services added 3,800 (+3.2%) jobs over-the-month. The increases in the sector are the result of seasonal hiring, some of which occurred later than in prior years and at higher levels than the last few years. Since July 2010, jobs in this sector are up 3,100 (+2.6%).
Trade, Transportation, and Utilities gained 2,900 jobs (+0.5%). Of the component industries, Wholesale Trade gained the greatest number of jobs, 1,400 (+1.1%); Transportation and Warehousing gained 1,100 jobs (+1.3%) and Retail Trade gained 400 jobs (+0.1%). Over-the-year, jobs are up 5,300 (+1.0%) with Wholesale Trade gaining back 2,000 (+1.6%) jobs and Retail Trade adding 3,300 (+1.0%) jobs.
Manufacturing gained 2,400 jobs (+0.9%) as Durable Goods gained 1,600 jobs (+0.9%) and Non-Durable Goods were up 800 jobs (+0.9%). From July 2010 to July 2011, Manufacturing has gained 5,900 (+2.3%) jobs with seven out of every ten job gains in Durable Goods. Durable Goods growth industries include Fabricated Metal Products; Machinery; Computer and Electronic Products; and Electrical Equipment, Appliances and Components.
Professional, Scientific and Business Services gained 700 jobs (+0.1%), the sector’s eighth consecutive monthly increase. Professional, Scientific and Technical Services gained 1,000 jobs (+0.4%). Administrative and Waste Services gained 400 jobs (+0.3%) while Management of Companies and Enterprises lost 700 jobs (-1.2%). Over-the-year, the sector has added 12,400 (+2.7%) jobs with 9,900 jobs gained in Professional, Scientific and Technical Services and 2,500 jobs in Administrative and Support Services.
Financial Activities gained 600 jobs (+0.3%) with all of the gain in Finance and Insurance. Over-the-year, jobs are up 2,700 with a 1,300 job gain in Finance and Insurance and a 1,400 job gain in Real Estate, Rental and Leasing.
Construction lost 1,500 jobs (-1.4%) following a 1,900 job gain in June. This sector had posted job gains in each of the previous four months. Over-the-year, this sector has added 2,100 (+2.0%) jobs with gains in all component industries.
Information lost 200 jobs (-0.2%). Since July 2010, this sector has added 4,300 jobs or +5.0%, the largest sector rate of growth.
Leisure and Hospitality lost 100 jobs (0.0%) following a revised loss of 1,800 jobs in June, previously published as a 1,400 gain. Accommodation and Food Services gained 800 jobs (+0.3%) in July following a revised loss of 200 jobs in June. Arts, Entertainment, and Recreation lost 900 jobs (-1.8%) in July following a 1,600 job loss in June. Over-the-year, the sector has added 8,800 (+2.9%) jobs as Accommodation and Food Services added 9,200 (+3.6%) jobs.
Government gained 1,100 jobs (+0.3%) with the gains shared by all levels. Over-the-year, Government lost 5,100 (-1.2%) jobs with losses in Federal Government and State Government more than offsetting a small gain in Local Government jobs.
Methodological changes implemented by the Bureau of Labor Statistics (BLS) earlier this year are causing more volatile changes to the monthly jobs estimates.
Labor Force Overview
The July estimates show 3,208,700 Massachusetts residents were employed and 263,400 were unemployed, for a total labor force of 3,472,100. Since October 2009, there are 40,300 more residents employed and 41,000 fewer residents unemployed as the labor force decreased by 700. Totals for July 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 for July exhibit different trends.