- Executive Office of Labor and Workforce Development
Media Contact for Massachusetts Unemployment and Job Estimates for July 2020
Charles Pearce, Director of Communications - Exec. Office of Labor and Workforce Development
Boston, MA — The state’s July total unemployment rate is down 1.6 percentage points at 16.1 percent following a revision to the June rate of 17.7 percent, the Executive Office of Labor and Workforce Development announced Friday.
The Bureau of Labor Statistics’ preliminary job estimates indicate Massachusetts added 72,100 jobs in July. This follows last month’s revised gain of 94,600 jobs. Over the month, the private sector added 67,300 jobs as gains occurred in Leisure and Hospitality; Trade, Transportation, and Utilities; Education and Health Services; Other Services; Manufacturing; Construction; and Information. Losses occurred in Financial Activities and Professional, Scientific, and Business Services. Government added jobs over the month.
From July 2019 to July 2020, BLS estimates Massachusetts lost 452,600 jobs.
Losses occurred in each of the private sectors, with the largest percentage losses in Leisure and Hospitality; Other Services; Trade, Transportation, and Utilities; and Construction.
The July unemployment rate was 5.9 percentage points above the national rate of 10.2 percent reported by the Bureau of Labor Statistics.
The labor force decreased by 12,600 from 3,684,300 in June, as 50,300 more residents were employed and 62,900 fewer residents were unemployed over the month.
Over the year, the state’s seasonally adjusted unemployment rate increased by 13.2 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 – dropped to 64.9 percent. Compared to July 2019, the labor force participation rate is down by 2.8 percentage points.
July 2020 Employment Overview
Leisure and Hospitality gained 35,300 (+18.9%) jobs over the month. Over the year, Leisure and Hospitality lost 156,100 (-41.3%) jobs.
Trade, Transportation and Utilities added 15,000 (+3.1%) jobs over the month. Over the year, Trade, Transportation and Utilities lost 73,900 (-12.8%) jobs.
Education and Health Services gained 7,300 (+1.0%) jobs over the month. Over the year, Education and Health Services lost 77,700 (-9.6%) jobs.
Other Services gained 6,300 (+6.5%) jobs over the month. Over the year, Other Services are down 36,300 (-26.0%) jobs.
Manufacturing added 2,300 (+1.0%) jobs over the month. Over the year, Manufacturing lost 12,900 (-5.3%) jobs.
Construction gained 1,900 (+1.4%) jobs over the month. Over the year, Construction has lost 19,500 (-12.0%) jobs.
Information added 600 (+0.7%) jobs over the month. Over the year, Information lost 4,800 (-5.1%) jobs.
Financial Activities lost 600 (-0.3%) jobs over the month. Over the year, Financial Activities lost 5,900 (-2.6%) jobs.
Professional, Scientific and Business Services lost 800 (-0.1%) jobs over the month. Over the year, Professional, Scientific and Business Services lost 37,000 (-6.1%) jobs.
Government added 4,800 (+1.1%) jobs over the month. Over the year, Government lost 28,300 (-6.2%) jobs.
Labor Force Overview
The July estimates show 3,080,700 Massachusetts residents were employed and 591,000 were unemployed, for a total labor force of 3,671,600. The unemployment rate at 16.1 percent was down by 1.6 percentage points from the revised June estimate of 17.7 percent. The July labor force decreased by 12,600 from 3,684,300 in June, as 50,300 more residents were employed and 62,900 fewer residents were unemployed over the month. The labor force participation rate, the share of working-age population employed and unemployed, was down two-tenths of a percentage point over the month at 64.9 percent. The labor force was down at 142,300 from the 3,814,000 July 2019 estimate, with 623,700 fewer residents employed and 481,400 more residents unemployed.
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. The Bureau of Labor Statistics implemented the Current Population Survey level-shift outliers into the estimation models to incorporate the state claims and CES inputs starting with the revised March estimates. These level shifts preserved movements in published estimates that the models otherwise would have discounted as sampling error. Seasonal factors, which were suspended beginning with the March estimates, have been resumed and were applied starting with the June estimates.
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.
Local area unemployment statistics for July 2020 will be released on Tuesday, August 25, 2020. The preliminary August 2020 and revised July 2020 unemployment rate, labor force and job estimates for Massachusetts will be released on Friday, September 18, 2020. See the 2020 Media Advisory annual schedule for a complete list of release dates.
Detailed labor market information is available at www.mass.gov/lmi.