Jobless rate drop tells true tale of state’s economy

When it comes to the state of Massachusetts’ economy, percentage rates only tell part of the story.

The state’s unemployment rate dropped to 6.7% in November, a dramatic improvement from the double-digit figures reported over the summer, but still well above pre-pandemic levels.

Labor officials reported a 0.7 percentage point decline in the state’s jobless rate, down from 7.4% in October, bringing it to its lowest level since COVID-19 created dual health and economic crises.

After months of exceeding the national average, Massachusetts equaled the 6.7% national unemployment rate for November.

That’s a considerable improvement over July’s nation-leading 16.2% jobless rate, and August’s 11.3% unemployment numbers, when the nation’s unemployment average stood at 8.4%.

Those statistics reflect the drastic business-closure steps taken to stem the rate of coronavirus infections, which hit this state especially hard at the outset of this pandemic.

Other states, like New Hampshire, which experienced far less exposure to the virus, consequently sustained far fewer job losses, and quickly recovered from whatever deficit they sustained.

As further proof, the Granite State’s unemployment rate dropped from 4.2% in October to 3.8% in November.

Based on a survey of employers, the federal Bureau of Labor Statistics estimated that Massachusetts added 12,200 jobs in November. That’s slightly more than the revised increase of 9,500 added in October and less than the rapid stretches of growth over the summer when larger numbers of jobs returned following forced business closures in the spring.

Most private industries in Massachusetts reported job gains in November, led by trade, transportation and utilities with 6,800 and professional, scientific and business services with

3,500.

Government shed 3,400 jobs last month across the state, likely reflecting the strain that many municipalities face in the absence of additional federal aid.

And we can’t forget or ignore the irreparable damage done to the state’s restaurant industry, which has contracted by at least 25% thanks to the coronavirus, with further losses destined to occur over the winter.

Even with the latest hires, Massachusetts still has only recovered slightly less than half of the roughly 690,000 jobs cut in March and April, according to the employer survey.

That suggests the improving jobs numbers and unemployment rate likely mask deeper, more lasting damage at both the state and federal level. Many people have dropped out of the workforce altogether, having given up attempts to find jobs, due in part to employers’ reluctance to add workers during the COVID-19 pandemic.

For example, the number of Massachusetts workers counted as unemployed dropped by more than 250,000 in August and September, a decline of more than a third.

However, only about 114,000 more workers were hired during that span.

Data indicating how many individuals have stopped seeking employment would give a more accurate picture of the state’s economy, currently obscured by that November jobless rate.

That’s why, despite the rollout of two FDA-approved COVID-19 vaccines, another financial relief package scheduled for Congress’ approval Monday can’t arrive soon enough.

The $900 billion COVID19 economic relief package agreed to by Senate negotiators delivers overdue help to businesses and individuals, as well as providing money for nationwide delivery of those vaccines.

This new round of economic stimulus provides a temporary $300-per-week supplemental jobless benefit and a $600 direct stimulus payment to most Americans, along with a new round of subsidies for hard-hit businesses and money for schools, health care providers and renters facing eviction.

The incoming Biden administration will likely push for even more financial assistance, the scope of which will depend on which party controls the Senate.