State adds 3,400 jobs in September as recovery gains strength
Massachusetts employers added 3,400 jobs in September, led by growth in technology-related sectors. The unemployment rate rose to 5.1 percent from 4.9 percent in August.
September's gains were more evidence that state's economic recovery is gaining strength. The state has added 33,000 jobs over the past year and 61,000 since the labor market hit bottom in December 2003. Massachusetts still has 145,000 fewer jobs that at the pre-recession peak of early 2001.
The state's job growth, however, has accelerated over the past year. Payroll employment is up 1 percent, matching the national rate of growth after substantially lagging it in the earlier phases of the recovery.
Even the increase in the unemployment rate had positive aspects. The number of employed people increased, but an even higher number of job seekers entered the labor market to push the rate higher. The number of job seekers tend to grow as employment prospects brighten, according to economists.
Professional, scientific, and business services, which includes a variety of tech firms, led September's gains by adding 2,100 jobs. The sector has added 9,500 jobs over the past year, growing at twice the rate of overall state employment.
The tech components of this sector have been particularly strong over the last year. Payroll employment in management, scientific, and technical consulting services grew nearly 5 percent and while scientific research and development jobs grew nearly 4 percent.
Other key sectors posted gains in September. Education and health services added 200 jobs, following a 2,300 job gain in August. Financial services added 500 jobs, and has posted gains in eight of the last nine months. Construction employment rose by 200, while leisure and hospitality, which includes restaurants, hotels and tourism businesses, gained 900 jobs.
Manufacturing, however, lost 1,500 jobs. Trade, transportation and utilities, which includes retailers, shed 700 jobs in September.
(By Robert Gavin, Globe staff)
