State unemployment rate rose to 4.8% in May
JUNE 20, 2025…..The unemployment rate in Massachusetts climbed once again in May, widening the gap between the state and the nation as a whole following a year of nearly flat job growth in the Bay State.
New labor data published Friday show the statewide joblessness rate increased two-tenths of a percentage point to 4.8% last month, while the national rate remained flat at 4.2%.
The unemployment rate in Massachusetts has been rising gradually for more than two years after hitting a low of 3.3% in April 2023, and it now stands at the highest level since September 2021.
The state’s labor force and the rate of working-age Bay Staters participating in the labor force both grew last month, which can contribute to a rising unemployment rate.
Massachusetts employers face some of the highest unemployment insurance costs in the nation, and the Healey administration forecasts the business-funded account used to pay jobless benefits will become insolvent by 2028 without changes to current trends or policies.
A separate survey of employers counted a month-over-month increase in nonfarm payroll employment of 3,200 positions. Since February, employers have added about 14,100 jobs, a figure the Healey administration sought to highlight Friday.
However, total employment has increased only about one-tenth of a percentage point over the past year, and the number of nonfarm private employees still remains about 1,400 below the recent high observed in March 2024.
Mark Rembert, the chief economist in the Healey administration’s Department of Economic Research, said the latest monthly report indicates that “national and state economies continue to face significant headwinds.”
“May data paints a positive picture with three strong months of payroll job growth, adding more than 14,000 jobs since February and continued growth in the labor force. With the growth in the labor force, we saw a slight increase in the unemployment rate,” Rembert said in a statement. “At the same time, we are paying close attention to economic and labor market trends, especially as employers examine their future hiring in the face of economic uncertainty and quickly changing economic policies on the national level.”
State officials this year have resisted policy and spending shifts from Washington that they say could weaken traditionally strong job sectors such as health care, higher education, and science and research.
