BOSTON - AUGUST 14, 2008 --- The Commonwealth's unemployment rate dropped slightly this month, as estimates show Massachusetts has gained jobs overall in 2008 in sectors including education and health services and professional, scientific, and business services, while the national economy continues to shed jobs, the Executive Office of Labor and Workforce Development reported today.

Massachusetts has added jobs in eight of the last ten months, and while jobs are up this year-to-date, the rate of job growth in the Bay State is slowing, given the softening national economy. Jobs in the education and health services sector grew by 3,600 jobs this month, due to significant gains in educational services. This sector continues to be the largest growing sector of the Massachusetts economy.

According to the monthly estimates released today, jobs in June were higher than previously reported (3,000, up from 2,900), and the preliminary estimates for the month of July show jobs were down by 2,900 for the month, due to declines in the leisure and hospitality sector and seasonal manufacturing jobs.

Leisure and hospitality accounted for the most job declines in July. Jobs were down 2,500 over the month following a 2,500 gain in June, due in part to a noticeable shift in the seasonal hiring patterns, as employers were not able to hire as much summer help in July as in previous years. Still, this sector added the fourth largest job gain of the state's economy this year.

The Massachusetts unemployment rate, also released today, dropped from 5.2 percent in June to 5.1 percent in July. At the same time, the national rate was up from 5.5 percent in June to 5.7 percent in July - the highest rate in more than four years. The Massachusetts rate has been below the national rate each month since June 2007. One year ago, the rate in Massachusetts was 4.4 percent while the national rate was 4.7 percent. Through July, the state unemployment rate has averaged 4.7 percent, similar to the 4.6 percent rate recorded for the comparable seven-month period in 2007.

Employment Overview
Education and health services added 3,600 jobs in July - its fourth consecutive monthly increase, and the second time over the last four months this substantial a gain was recorded. Educational services added 2,400 jobs over the month with health care and social assistance accounting for another 1,200 jobs. At 640,100, jobs are up 13,800 or 2.2 percent from one year ago. This sector continues to post the strongest job gains and the highest annual growth rate of any super sector in Massachusetts.

Jobs in the professional, scientific and business services were off 700 in July to 488,700. The modest loss is due to losses in administrative and support services which include temporary help offsetting smaller gains in management of companies and professional, scientific and technical services industries. Employment is up 6,600 or 1.4 percent from one year ago, with all of the growth in professional, scientific and technical services.

• Financial activities employment was up 100 over the month. At 223,300, the financial activities sector is down 1,200 jobs from one year ago, with real estate, rental and leasing showing the largest declines.
  
  
• Trade, transportation and utilities jobs were unchanged over the month at 568,400. Employment in this super sector is down 3,300 from one year ago. A 5,500 over the year job loss in retail trade was only partially offset by a 1,300 job increase in wholesale trade and a 900 job increase in transportation, warehousing, and utilities. Since April this sector has added 1,000 jobs.
  
  
• Leisure and hospitality jobs were down 2,500 in July, offsetting an identical size gain from the previous month due to shifts in the seasonal pattern of hiring. At 302,100, jobs are up 1,400 over the year, the result of job gains in both the accommodation and food services industries.
  
  
• Information jobs were unchanged in July at 89,400. The information super sector has added 1,100 jobs over the past year and posted the third highest annual growth rate at 1.2 percent.
  
  
• Manufacturing jobs were off 2,400 in July. At 289,700, manufacturing employment is down 6,000 or 2.0 percent from one year ago.
  
  
• Construction jobs were down by 500 in July. At 134,300, jobs are down 2,900 or 2.1 percent from one year ago.
  
  

The job numbers are the result of a monthly survey that uses U.S. Department of Labor Bureau of Labor Statistics methodology. More than 9,000 Massachusetts employers are surveyed to determine the number of jobs by industry. These estimates are the economic indicator used to gauge the Commonwealth's employment growth patterns.

Labor Force Overview
The Bay State's labor force increased by 9,800 over the month as 13,500 more Massachusetts residents were employed and 3,700 fewer were unemployed. At 3,419,400, the labor force is up 11,000 from this time last year as 11,300 fewer residents were employed and 22,200 more were unemployed.

Labor force estimates for Massachusetts, developed using the U.S. Department of Labor Bureau of Labor Statistics model, are based on information on Massachusetts' residents' employment and unemployment status collected through a small monthly sample survey of households.

NOTES: : Local area unemployment statistics for July 2008 will be released on Tuesday, August 19, 2008. The August 2008 unemployment rate and labor force data for Massachusetts will be released on Thursday, September 18, 2008, as will the August 2008 survey of jobs. (See the January, 2008 Media Advisory annual schedule for complete listing of release dates.) Detailed labor market information is available at www.mass.gov/lmi. Historical jobs and labor force estimates for Massachusetts have been revised as of 2/28/08.