BOSTON - JANUARY 22, 2009 --- The Executive Office of Labor and Workforce Development reported today that the Massachusetts unemployment rate increased from 5.9 percent in November to 6.9 percent in December. Job losses for the month of December totaled 16,800. The recent job losses and increase in the total unemployment rate reflect the national economic recession's deep impact on Massachusetts during the fourth quarter.

The national unemployment rate increased from 6.8 percent in November to 7.2 percent in December. One year ago in December 2007 Massachusetts recorded a 4.3 percent rate while the U.S. rate stood at 4.9 percent.

A downward revision of 14,300 to the November estimates resulted in a job loss of 22,300 for the month. The unusually large monthly revision is a result of procedural changes made by the U.S. Department of Labor's Bureau of Labor Statistics. These changes are applied to all states and are designed to bring the sum of the states jobs estimates into closer alignment with national employment estimates.

The state's preliminary annual average unemployment rate for 2008 was 5.1 percent, up from the 4.5 percent rate for 2007. The U.S annual average rose from 4.6 percent in 2007 to 5.8 percent in 2008. Nearly half of the state's December losses occurred in Professional, Scientific, and Business Services.

Employment Overview
Education and Health Services, Massachusetts' largest sector, lost 700 jobs in December. Educational Services posted a small gain for the second straight month while Health Care and Social Assistance recorded small losses. At 637,400, Education and Health Services added 9,300 jobs over the year, the largest sectoral job gain and the strongest sectoral growth rate , +1.5 percent. Heath Care and Social Assistance accounted for a 7,300 job gain; Educational Services added 2,000 jobs over the year.

Jobs in the Professional, Scientific and Business Services declined by 7,500 in December. Over half of the monthly job loss was recorded in the Administrative and Support Services component, which includes Temporary Help. At 478,000, employment is down 6,200 from one year ago, with gains of 3,400 in Professional, Scientific, and Technical Services more than offset by declines in Administrative and Support Services.

Financial Activities employment was off 900 over the month, with losses in Finance and Insurance and Real Estate, Rental and Leasing. At 217,500, Financial Activities jobs are down 7,000 or 3.1 percent from one year ago, with losses split between Real Estate, Rental and Leasing and Finance and Insurance.

Trade, Transportation and Utilities jobs shed 3,400 jobs in December, with Retail Trade again accounting for most of the losses. A small gain of 300 was recorded in Transportation, Warehousing, and Utilities. At 557,300, employment is down 14,100 from one year ago, with nearly all the job loss attributed to declining retail sales.

Leisure and Hospitality jobs were down 900 in December with losses divided between Arts, Entertainment and Recreation and Accommodation and Food Services. At 296,900, jobs are off 6,100 over the year, with losses of 3,200 in Arts, Entertainment, and Recreation and 2,900 in the much larger Accommodation and Food Services.

Information jobs were up 200 in December, the fourth consecutive monthly increase. At 89,900, employment in Information is off 100 over the past year with over the year gains in Software Publishing and Telecommunications offset by declines in Newspaper, Periodical, Book and Directory Publishing. Government added 500 jobs in the month of December.

Manufacturing jobs declined by 1,000 in December after losing 3,300 the previous month. Most of the losses over the last two months have been in durable goods. At 285,000, Manufacturing employment is down 8,600 or 2.9 percent from one year ago with the largest losses in Computer and Electronic Products, Fabricated Metals, and Machinery.

Construction jobs which were down 2,500 in December have declined by 9,400 over the last four months. At 125,400, jobs are down 11,700 or 8.5 percent from one year ago, 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 8,000 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 was down 3,100 over the month with 35,700 fewer Massachusetts residents employed and 32,600 more unemployed. At 3,418,100, the labor force is up 15,300 from this time last year as 74,000 fewer residents were employed and 89,300 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 December 2008 will be released on Tuesday, January 27, 2009. The January 2009 unemployment rate, labor force and jobs data for Massachusetts will be released on Thursday, March 5, 2009. (See the January, 2009 Media Advisory annual schedule for complete listing of release dates.) Detailed labor market information is available at www.mass.gov/lmi. Revised historical jobs and labor force estimates for Massachusetts will be released on 3/5/09.