Press Release  Massachusetts’ Unemployment Rate Drops to 4.5%

BOSTON — Today, the Executive Office of Labor and Workforce Development (EOLWD) released Massachusetts unemployment and job estimates for May 2026, with preliminary data indicating that payroll jobs decreased by 2,900 for the month, following a revised increase of 7,400 jobs in April. Massachusetts has added more than 17,600 payroll jobs, including 14,100 private sector jobs, since September. Preliminary data also shows the May unemployment rate dropped to 4.5% and labor force participation rate decreased slightly to 65.4%.

BLS categories with the strongest growth month-over-month for Massachusetts employment in May includes 1) Government (+1,200), 2) Education & Health Services, and Utilities (+1,200), 3) Trade, Transportation, & Utilities (+1,200), and 4) Information (+1,100) gained jobs.

“The unemployment rate fell this month to its lowest level since last August,” said EOLWD’s Department of Economic Research Chief Economist Mark Rembert.  “At the same time, we continue to see shifts in the labor force as more older workers retire. Combined with elevated job posting activity, these trends suggest the labor market could continue to tighten through the summer.”

In recent weeks, the Healey-Driscoll has announced or highlighted several investments tied to job creation, training, and workforce opportunities. Highlights include:

• Awarded $17.9 million in Workforce Training Fund Grants to 1,255 Massachusetts businesses to train, upskill, and retain over 15,900 workers. Since Governor Healey took office in January 2023, the Workforce Training Fund Program (WTFP) has awarded $100 million to train more than 82,700 workers for approximately 3,850 Massachusetts employers. 
• Launched Start Your Career in MA, a new online career resource designed to support early-career jobseekers and career changers with state-supported career tools, labor market information, job search resources, and professional development opportunities.
• Signed a major transportation funding bill to improve local roads and bridges, support housing production and strengthen transportation infrastructure across Massachusetts. The legislation includes $300 million in Chapter 90 funding for cities and towns and authorizes an additional $200 million for transportation improvements that help unlock new housing development.   

Key takeaways from the monthly jobs and employment report 

• The Massachusetts unemployment rate in May dropped to 4.5 percent. The national unemployment rate is 4.3 percent.
• The state’s Labor Force Participation Rate decreased slightly to 65.4 percent. Retirement continues to be a primary driver for the decline in the Labor Force Participation Rate, while the Labor Force Participation Rate for workers 25-54 has increased by 9.1 percent over the year (May 2025 – May 2026).
• The labor force decreased in May by 9,000 with 4,200 fewer people employed and 4,800 fewer unemployed. This includes individuals who have retired or left the workforce for other reasons and individuals who are self-employed and entrepreneurs. 
• Construction and Leisure and Hospitality were the primary driver of job losses for May, with losses of 4,200 and 3,200 jobs respectively. 

For a detailed overview of the BLS data, please visit mass.gov/economicresearch and May BLS Unemployment and Jobs Estimates. June unemployment and job estimates are scheduled to be released on Friday, July 17, 2026.

Labor Market Quick Links 

• Mass.gov/UnemploymentRates
• Unemployment and Labor Force Data
• Employment Information by Industry
• Employment Information by Occupation
• Labor Market Information 101 

MassHire Services

MassHire provides free workforce services for both jobseekers and employers across Massachusetts.Jobseekers can explore job openings through MassHire JobQuest, attend hiring events, access training opportunities, and receive personalized support at a local MassHire Career Center. Employers can connect with Business Services Representatives to recruit their workforce and participate in job fairs to support hiring and business growth.

Note: The unemployment rate is based on a household survey, while job estimates come from an employer survey. Because these surveys are separate, the two statistics may show different trends from month to month.

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