The Massachusetts unemployment rate has decreased significantly when compared to previous years. Preliminary estimates from the Bureau of Labor Statistics showed that the unemployment rate in Massachusetts fell 0.1 percent to reach 2.8 percent in December 2016. Massachusetts has had a lower unemployment rate than the national rate since April 2008. As of December 2016, the national rate was 4.7 percent. This was the sixth consecutive month that the rate declined. The last time the state had an unemployment rate this low was back in December 2000.

The state has an unemployment rate that is 1.9 percent lower than the national rate. It was reported that the state added some 75,000 jobs in 2016. Of this, 6,600 jobs were added in December. It was also reported that November saw a sharp increase in jobs; the state added 7,000 jobs, an increase of 1,200 from that of the previous year. Even though more jobs were added in festive months, the seasonal unemployment rate has also seen a decline and was down to 2.1 percent in comparison to that of the previous year which was 4.9 percent in December of 2015.

While the unemployment rate continues to decrease, the labor force participation rate has remained steady over the year. The labor force participation rate is the number of people aged 16 or older who worked or were unemployed and who were actively seeking employment in the last four weeks. Massachusetts labor force participation rate was 64.7 percent. The labor force participation rate increased 0.2 percent when compared to December 2015.

Some of the fields that experienced a boom in employment include Education and Health Services; Construction; Professional, Scientific and Business Services; Information; Leisure and Hospitality; Financial Activities; and Other Services and Manufacturing Sectors. The fields that experienced losses included Trade, Transportation and Utilities, and Government.

During the year, Construction; Professional, Scientific and Business Services; Education; and Leisure and Hospitality were the private sector industries that saw the most job growth.

It was also noted that if statisticians were to take into account those who had stopped seeking employment and those who were working part-time but who preferred to work full-time, the Massachusetts unemployment rate would have been at 8.8 percent, the Bureau of Labor Statistics reported. The last time Massachusetts had an unemployment rate that high was in September 2009. Today, there are 335,600 more Massachusetts residents who are employed and 202,700 fewer unemployed. The labor force increased by 133,000.

The estimates for December show that 3,500,000 Massachusetts residents were employed and 101,300 were unemployed with the total labor force being 3,601,400. In December, the labor force decreased by 1,100 from 3,602,500 in November, and 2,800 residents were employed; 4,100 fewer residents were unemployed during the month.

Unemployment rates are based on a monthly sample of households and the job estimates are derived from a monthly sample survey of employers. As a result, the two statistics may give different monthly trends.