Boston, September 20, 2025
News Summary
The unemployment rate in Massachusetts has held steady at 4.8% for four consecutive months, with recent data revealing a loss of 3,800 jobs in August. Despite gains in some industries, overall job growth has fallen short of the national average. The labor market shows signs of stability, although hiring practices are evolving with the rise of artificial intelligence in applicant screening. Job seekers are advised to focus on networking and targeted skills, especially in trades, as they navigate this complex job market environment.
Boston — The unemployment rate in Massachusetts remained at 4.8% in August, unchanged for the fourth consecutive month. Data released by the Bureau of Labor Statistics on Friday show employers in the state cut payrolls, restarting a decline that left total jobs slightly below the peak recorded earlier in May.
Key points
Employers in Massachusetts shed 3,800 jobs in August, with losses concentrated in several sectors even as some industries added positions. The state’s jobless rate is half a percentage point higher than the national average, and overall job growth in Massachusetts has trailed national performance throughout the year.
Payrolls and household measures
Payroll data show a net loss of 3,800 jobs in August, while the separate household survey indicates that employment increased by 20,000 individuals this year, likely due to gains among self-employed workers. The divergence suggests that some employment gains are occurring outside traditional payroll jobs.
Sectors showing losses and gains
Job losses in August were primarily seen in construction (down 2,600 jobs) and private education and health services (down 2,500 jobs). Offsetting those declines to a degree, some sectors posted gains, including professional and business services (up 1,000 jobs) and trade, transportation, and utilities (up 900 jobs).
Labor market context and trends
State economic officials have described the labor market as showing signs of stability despite weaker conditions nationally. Mark Rembert, chief economist at the state’s Department of Economic Research, stated that the labor market shows signs of stability despite worsening national economic conditions. Still, Massachusetts job growth has been generally slower than the national pace this year.
The unemployment rate earlier in the year was lower at 4.4% in March, pointing to some variability in conditions across months. A reported 33% decrease in announced layoffs and job cuts was noted in the first four months of 2025 compared to the previous year, offering a mixed signal about employer behavior.
Hiring practices and job-seeker experience
Employers are increasingly using artificial intelligence for applicant screening, which is affecting hiring processes and candidate responses. Companies increasingly rely on artificial intelligence for applicant screening, which affects hiring practices. Job seekers also report encountering “ghost postings,” or job listings that companies do not intend to fill immediately, and many applicants say they apply and do not receive responses.
Some firms appear to create a perception of steady hiring by posting non-urgent openings, while others move roles offshore to reduce costs. There is strong demand for tradespeople in Massachusetts, even as some traditional white-collar roles face pressure from automation and AI. There is strong demand for tradespeople in Massachusetts, while traditional white-collar jobs face challenges from advancements in artificial intelligence.
What this means for job seekers and employers
The current environment presents mixed signals: stable unemployment rates alongside slowed job growth and sectoral shifts. Networking and internal referrals are becoming more important because a growing share of openings are filled without public postings. An emphasis is being placed on networking, as unposted jobs are being filled through internal connections rather than public listings.
For job seekers, the combination of slowed payroll hiring, AI screening, ghost postings, and selective hiring practices suggests focusing on targeted outreach, skills in demand (notably trade skills), and connection-building within industries where hiring is still active.
Additional background
Data was released by the Bureau of Labor Statistics on Friday. Job growth in Massachusetts has lagged behind the national average throughout the year. The unemployment rate was at 4.4% as of March, illustrating some variability in job market conditions over the year. Despite mixed signals in the job market, there is evidence of job growth in sectors like education, health services, and government.
Frequently Asked Questions
- What is the current unemployment rate in Massachusetts?
- The unemployment rate in Massachusetts remained at 4.8% in August, unchanged for the fourth consecutive month.
- Who released the employment data and when?
- Data was released by the Bureau of Labor Statistics on Friday.
- How many jobs were lost in August?
- Employers in Massachusetts shed 3,800 jobs in August, restarting a decline that has left payrolls slightly below the peak seen earlier in May.
- How does state job growth compare with the national picture?
- Job growth in Massachusetts has lagged behind the national average throughout the year.
- How does the state’s unemployment rate compare to the national average?
- The state’s jobless rate is half a percentage point higher than the national average.
- What does the household survey indicate about employment?
- The separate household survey indicates that employment increased by 20,000 individuals this year, likely due to gains among self-employed workers.
- Which sectors saw the largest job losses in August?
- Job losses in August were primarily seen in construction (down 2,600 jobs) and private education and health services (down 2,500 jobs).
- Which sectors added jobs in August?
- However, some sectors experienced job gains, including professional and business services (up 1,000 jobs) and trade, transportation, and utilities (up 900 jobs).
- Have announced layoffs changed recently?
- A reported 33% decrease in announced layoffs and job cuts was noted in the first four months of 2025 compared to the previous year.
- How are hiring practices changing?
- Companies increasingly rely on artificial intelligence for applicant screening, which affects hiring practices.
- What are “ghost postings”?
- Job seekers are encountering “ghost postings,” or job listings that companies do not intend to fill immediately.
- Are there sectors with strong demand?
- There is strong demand for tradespeople in Massachusetts, while traditional white-collar jobs face challenges from advancements in artificial intelligence.
Useful at-a-glance data
| Measure | Value / Note |
|---|---|
| Unemployment rate (August) | 4.8% (unchanged for the fourth consecutive month) |
| Payroll change (August) | Employers in Massachusetts shed 3,800 jobs in August |
| Household survey change (year-to-date) | The separate household survey indicates that employment increased by 20,000 individuals this year, likely due to gains among self-employed workers |
| Sectors with largest declines (August) | Construction (down 2,600 jobs); Private education and health services (down 2,500 jobs) |
| Sectors with gains (August) | Professional and business services (up 1,000 jobs); Trade, transportation, and utilities (up 900 jobs) |
| Comparison to national average | The state’s jobless rate is half a percentage point higher than the national average |
| Earlier in the year | The unemployment rate was at 4.4% as of March |
| Layoff announcements (first four months of 2025) | A reported 33% decrease in announced layoffs and job cuts was noted in the first four months of 2025 compared to the previous year |
| Hiring and recruitment trends | Companies increasingly rely on artificial intelligence for applicant screening; job seekers are encountering “ghost postings” |
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Additional Resources
- Boston Globe: Massachusetts Unemployment
- MassLive: Chaotic Job Market in Massachusetts
- WWLP: Massachusetts Adds Jobs
- BioSpace: Life Sciences Job Growth
- Boston Globe: Tough Jobs Market
- Wikipedia: Economy of Massachusetts
- Google Search: Massachusetts unemployment trends
- Encyclopedia Britannica: Economic Policy
- Google News: Massachusetts job market
Author: STAFF HERE BOSTON WRITER
BOSTON STAFF WRITER The BOSTON STAFF WRITER represents the experienced team at HEREBoston.com, your go-to source for actionable local news and information in Boston, Suffolk County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Boston Marathon, Head of the Charles Regatta, and Boston Harborfest. Our coverage extends to key organizations like the Greater Boston Chamber of Commerce and Associated Industries of Massachusetts, plus leading businesses in finance, biotech, and insurance that power the local economy such as Fidelity Investments, Biogen, and Liberty Mutual Insurance. As part of the broader HERE network, we provide comprehensive, credible insights into Massachusetts's dynamic landscape.
