Press Release  Massachusetts’ Unemployment Rate Improves to 4.3%; Labor Force Grows in August

Boston — Today, the Executive Office of Labor and Workforce Development (EOLWD) released Massachusetts unemployment and job estimates for August 2026, with preliminary data indicating that payroll jobs decreased by 7,100 for the month, following a revised decrease of 4,000 jobs in July. Massachusetts has added 11,300 payroll jobs, including 9,700 private sector jobs, since September 2025. Preliminary data also shows the August unemployment rate dropped to 4.3% and labor force participation rate remained at 65.3%. 

BLS categories with the strongest growth month-over-month for Massachusetts employment in July includes 1) Manufacturing (+1,400), 2) Information (+800), and 3) Leisure and Hospitality (+400).

“The unemployment rate fell to 4.3% in August, the lowest level since March 2025,” said EOLWD’s Department of Economic Research Chief Economist Mark Rembert. “While retirements among older workers continue to limit labor force growth, Massachusetts is experiencing relatively low unemployment among workers aged 25 to 54. Over the past twelve months, the unemployment rate among workers aged 25-54 in Massachusetts was lower than peer states like Texas, New Jersey, New York, and California.”

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

• Yesterday, Governor Maura Healey attended the grand opening of the Roche Genentech Innovation Center in Boston, part of their $50 billion investment in U.S. manufacturing and R&D.
• Yesterday, Governor Healey announced $5.2 million in awards through the Massachusetts Life Sciences Center’s Pathmaker Program to expand workforce training and create 439 opportunities for residents to prepare for careers in the life sciences.
• This week, Governor Healey awarded $7 million to support live theater production across Massachusetts, supporting local jobs and businesses.
• Governor Healey announced that Massachusetts has opened the application process for colleges, universities and eligible training providers seeking state approval to offer short-term programs through the new federal Workforce Pell Grant program.
• Governor Healey and the Mass Clean Energy Center (MassCEC) announced $4.2 million in funding to 20 projects that will prepare workers for offshore wind and maritime careers, and support research on fisheries, wildlife, and the marine environment.
• In August, the Healey-Driscoll Administration announced it will deploy more than $24 million to strengthen Massachusetts' workforce and talent development through the Workforce Investment Trust Fund (WITF) in Fiscal Year 2027. The investments are designed to help Massachusetts employers recruit and train the skilled workers they need to grow while expanding pathways for residents to build skills and access careers in high-demand industries and create economic opportunity.
• Earlier this month, the MBTA broke ground on the North Station Draw One Bridge replacement, a major infrastructure project that will create more than 15,000 jobs.

Key takeaways from the monthly jobs and employment report

• The Massachusetts unemployment rate in August dropped to 4.3 percent. The national unemployment rate is 4.1 percent.
• The state’s Labor Force Participation Rate remained at 65.3 percent. Massachusetts Labor Force Participation Rate is 3.7 percentage points higher than the national rate.
• The state’s labor force increased in August by 900 with 3,100 more residents employed and 2,200 fewer unemployed. This includes individuals who have retired or left the workforce for other reasons and individuals who are self-employed and entrepreneurs. 

For a detailed overview of the BLS data, please visit the Department of Economic Research website. September unemployment and job estimates are scheduled to be released on Friday, October 16, 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

MassHireprovides free workforce services for both jobseekers and employers across Massachusetts. Jobseekers can explore job openings, attend hiring events, access training opportunities, and receive personalized support online or by visiting a 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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