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Unemployment rate ticks up to 4.2% in January

March 10, 2025 by State House News Service


Mass. Number Remain a “Share Higher” Than National Rate

The unemployment rate in Massachusetts inched upward in January, remaining a shade higher than the rate for the country as a whole, officials announced Friday.

State labor officials said the jobless rate in Massachusetts increased one-tenth of a percentage point to 4.2%. The national unemployment rate in January was an even 4%.

Over the course of the year, the unemployment rate in Massachusetts grew about half a percentage point, from 3.7% in January 2024 to 4.2% in January 2025.

Bay State employers added 3,200 jobs in January, officials said, building on December’s revised gain of 7,000 positions. The growth was more limited year-over-year, with only about 400 net jobs added from January 2024 to January 2025.

Many Massachusetts businesses continue to press for reforms to the state’s unemployment insurance system as they prepare for projected increases in the taxes they pay to fund benefits. The state must also repay the federal government $2.1 billion over the next 10 years due to an error by the Baker administration.

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