BOSTON - NOVEMBER 20, 2008 --- The Executive Office of Labor and Workforce Development reported today that the Massachusetts unemployment rate increased from 5.3 percent in September to 5.5 percent in October.

The Massachusetts unemployment rate was a full percentage point lower than the national rate, which rose from 6.1 percent in September to 6.5 percent in October. The Massachusetts rate has been below the national rate each month since June 2007.

The state's unemployment rate averaged 4.9 percent for the first 10 months of 2008, up from the 4.5 percent rate for the comparable period in 2007. The U.S average for this same 10 month period rose from 4.6 percent in 2007 to 5.5 percent in 2008.

Preliminary estimates show that Massachusetts lost 7,000 jobs in October following a revised estimate of a 3,100 decline in September. Three sectors added jobs over the month with the largest gains in professional, scientific and business services. Seven sectors recorded over the month job losses as the impact of the national downturn reaches more sectors in the Bay State. At 3,284,200, jobs are up 2,200 from one year ago.

Employment Overview
Education and health services lost 900 jobs in October due to jobs in educational services not returning to anticipated seasonal levels. Health care and social assistance employment was unchanged over the month. At 638,900, education and health services continues to generate the most jobs adding 12,700 jobs and the highest annual growth rate, up 2.0 percent from one year ago with health care and social assistance creating most of the jobs.

Jobs in the professional, scientific and business services sector increased 1,100 in October to 489,200, due to slightly higher than expected gains in temp help. Over the year, employment is up 6,000 or 1.2 percent with all of the gains in professional, scientific and technical services.

Financial activities employment was off 200 over the month, with a 900 job loss in real estate, rental and leasing mostly offset by a 700 job increase in finance and insurance. At 221,500, the financial activities sector is down 2,800 jobs from one year ago, mostly due to a decline of 2,000 jobs in real estate, rental and leasing.

Trade, transportation and utilities shed 2,700 jobs in October due to losses in transportation, warehousing, retail trade and whole sale trade. At 565,300, this sector posted the largest over the month decline and is down 4,500 from one year ago, due to job declines of 6,200 in retail trade which were only partially offset by gains in wholesale trade (+1,100) and transportation, warehousing, and utilities (+600).

Leisure and hospitality jobs were down 1,600 in October with losses divided between arts, entertainment and recreation and accommodation and food services. At 300,500, jobs are off 500 over the year, with a 1,500 job loss in arts, entertainment, and recreation partially offset by a 1,000 job increase in accommodation and food services.

Information jobs were up 200 in October to 89,200. Employment in the information super sector is off 300 over the year due to weakness in newspaper, periodical, book and directory publishing now being larger than the increases in software publishing.

Manufacturing jobs were off 900 in October due to losses on both durable and nondurable goods. Manufacturing employment has reached a new low level of 289,600. Over the year jobs are down 4,400 or 1.5 percent.

Construction jobs were down 2,300 in October. At 131,600, jobs are down 6,000 or 4.4 percent from one year ago. The job loss and the percentage loss represent the largest percentage decline of any sector.

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 9,900 over the month with 4,700 more Massachusetts residents employed and 5,200 more unemployed. At 3,423,500, the labor force is up 18,900 from this time last year as 20,900 fewer residents were employed and 39,800 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: area unemployment statistics for October 2008 will be released on Tuesday, November 25, 2008. The November 2008 unemployment rate and labor force data for Massachusetts will be released on Thursday, December 18, 2008, as will the November 2008 survey of jobs. www.mass.gov/lmi. Historical jobs and labor force estimates for Massachusetts have been revised as of 2/28/08.