Jobless rate down
State gains 12,800 jobs; average just above national rate
Since December 2020, Massachusetts has gained 70,400 jobs. But from March 2020, when businesses began to close due to the coronavirus pandemic, to last month, the state lost 272,700 jobs. Bureau of Labor Statistics
Massachusetts’ unemployment rate dipped two-tenths of a percent in March to 6.8%, 0.8 percentage points higher than the national rate, according to the Bureau of Labor Statistics.
The state gained 12,800 jobs in March, according to BLS preliminary job estimates. Over the month, the private sector added 11,100 jobs as gains occurred across six sectors, led by leisure and hospitality, education and health services, and construction.
Since December 2020, Massachusetts has gained 70,400 jobs. But from March 2020, when businesses began to close due to the coronavirus pandemic, to last month, the state lost 272,700 jobs, according to BLS estimates.
Losses occurred in every private sector except mining and logging, with the largest percentage losses in leisure and hospitality, with 24.2% of jobs lost; “other services,” with 17.1% of jobs lost; and education and health services, with 7.5% of jobs lost.
The labor force increased by 4,500 from 3,740,800 in February, as 14,400 more residents were employed and 9,900 fewer residents were unemployed over the month.
But over the year, the state’s seasonally adjusted unemployment rate was up by 4.1 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 — was up one-tenth of a percentage point at 66.4%. Compared to March 2020, the labor force participation rate is up four-tenths of a percentage point.
In other news, Massachusetts employers are getting a one-month reprieve on higher unemployment insurance premiums. The Department of Unemployment Assistance notified employers Thursday night that first quarter payments, which were due on April 30, will instead be due on June 1.
The delay gives businesses more time to prepare to make larger payments, and gives the Legislature time to address a spike in jobless system solvency assessments.
“This delay will give the Beacon Hill leadership time to determine a pathway for actual relief on the assessment beyond just a delay,” Retailers Association of Massachusetts President Jon Hurst wrote in an email to members. “The Solvency Fund Assessment normally covers socialized costs such as dependency allowances and charges for benefits for employers that went out of business, but with COVID19, that assessment has grown 1,600 percent since a year ago with no real notice until the last couple of weeks.”
Employers are urging the state to use newly allocated federal relief funds to soften the impact of rising contributions on businesses, especially those that are struggling the most due to pandemic impacts. While payments are being delayed, quarterly employment and wage detail filings are still due by April 30.