BOSTON - March 19, 2009 --- The Executive Office of Labor and Workforce Development reported today that the Massachusetts unemployment rate increased from 7.4 percent in January to 7.8 percent in February.

The national unemployment rate climbed to 8.1 percent in February from 7.6 percent in January, the highest rate in over 25 years. One year ago in February 2008 Massachusetts recorded a 4.6 percent rate while the U.S. rate was slightly higher at 4.8 percent.

The Education and Health Services and Leisure and Hospitality sectors each added jobs for the second consecutive month. The largest job declines were recorded in Professional, Scientific, and Business Services, Trade, Transportation, and Utilities, and Manufacturing. Employment in Financial Activities was unchanged while all other sectors lost jobs over the month. At 3,213,800, jobs are down 86,300 or 2.6 percent from one year ago, with 77,800 jobs lost during the last six months. February job losses totaled 11,300 as the continuing national recession is putting additional strains on the Massachusetts economy.

Employment Overview
The Education and Health Services sector has continued to add jobs during this recessionary period. Employment increased 1,300 in February following a 1,700 gain in January. Health Care and Social Assistance alone accounted for 900 new jobs in February and 2,700 over the first two months of 2009. At 646,300, Education and Health Services jobs are up 11,600 or 1.8 percent from one year ago, the only private sector to add jobs over the year. Health Care and Social Assistance added 10,200 jobs while Educational Services jobs were up 1,400 from one year ago.

Government jobs declined 1,100 in February. Jobs in the Professional, Scientific, and Business Services dropped by 4,500 in February following on a revised January loss of 3,800 jobs. In February Administrative and Waste Management Services component, which includes Employment Services, accounted for most of the losses; the Professional, Scientific, and Technical Services component also recorded losses. At 463,400, employment in the overall sector is down 27,000 or 5.5 percent from one year ago, with 19,200 jobs lost in Administrative and Waste Management Services.

Financial Activities employment was unchanged in February, the first month since March 2008 that jobs did not decline. At 210,200, the Financial Activities sector is down 12,200 jobs or 5.5 percent from one year ago, with losses split almost evenly between Real Estate, Rental and Leasing and the much larger Finance and Insurance industries. Employment remains at the lowest level since 1997.

Trade, Transportation and Utilities lost 3,700 jobs in February. As indicated in last month's release, the 1,900 job increase in January appears to be attributed to less than normal seasonal hiring followed by less than normal seasonal layoffs, as employment has declined during every other month over the past year. Employment in the sector is down 19,000 from one year ago to 553,200, the lowest level since 1996, with nearly all the annual job loss attributed to declines in Retail and Wholesale trade.

Leisure and Hospitality gained 1,300 jobs in February, posting its second consecutive monthly increase. The February gains all occurred in the large Accommodation and Food Services component. At 302,900, sector jobs are off 3,900 over the year, although Arts, Entertainment, and Recreation did manage to generate small employment gains.

Information jobs were off 500 in February. At 85,200, employment in Information is off 4,200 or 4.7 percent over the past year. Newspaper, Periodical, and Book Publishing recorded the largest over the year declines while employment in Software Publishing is unchanged.

Manufacturing declined by 2,500 jobs in February and has not posted a monthly job increase since December 2006. At 276,600 Manufacturing employment is down 13,200 or 4.6 percent from one year ago. Over the year losses were most prominent in Fabricated Metals and Computer and Electronic Products. Transportation Equipment was the only Manufacturing industry up over the year.

Construction jobs were off 300 over the month, a major improvement from the 9,900 decline over the prior three months. At 120,300, jobs are down 16,100 or 11.8 percent from one year ago, still more than twice the rate of decline of any other 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 up 2,400 over the month with 11,900 fewer Massachusetts residents employed and 14,300 more unemployed. At 3,428,900, the labor force is up 11,300 from February 2008 as 97,200 fewer residents were employed and 108,500 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 February 2009 will be released on Tuesday, March 24, 2009. The March 2009 unemployment rate and labor force data for Massachusetts will be released on Thursday, April 16, 2009, as will the March 2009 survey of jobs. (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. Historical jobs and labor force estimates for Massachusetts have been revised as of 3/05/09.

News of Note for Unemployed Workers
Massachusetts residents currently receiving unemployment benefits will collect an additional $25 in weekly compensation thanks to the American Recovery and Reinvestment Act. The additional compensation will begin next Monday, March 23rd, and is retroactive from February 22, 2009. http://www.mass.gov/eolwd/weeklysupplement.

The federal recovery law provides additional relief for unemployed Massachusetts residents using COBRA. Eligible individuals may receive a subsidy for 65% of the costs of their health care premium. More information can be found at www.Mass.gov/EOLWD/COBRA.

Additionally, the Executive Office of Labor and Workforce Development has added extra staff and extended hours at the unemployment call centers. For more information, visit www.Mass.gov/dua