Mass. unemployment rises to 5.5 percent

The Bay State's unemployment rate continued to march higher in October, but remained below the national average, according to the Executive Office of Labor and Workforce Development.

The agency said today that the state's unemployment rate climbed to 5.5 percent in October, up from 5.3 percent the previous month and 4.3 percent rate a year ago. Nationally, the jobless rate leaped from 6.1 percent in September to 6.5 percent in October.

The data were another sign of how hard the state's economy has been hurt by the global financial crisis and national economic recession.

Overall, Massachusetts lost 7,000 jobs in October; that follows the loss of 3,100 jobs in September, based on a survey of more than 9,000 employers.

Some sectors were particularly hard hit:

* Construction. Lost 2,300 jobs as many projects were put on hold because of the credit crisis.

* Manufacturing. Lost 900 jobs with declines in both durable and non-durable goods. Manufacturing in the state hit a new low of 289,600 jobs.

* Education and health services. Lost 900 jobs as educational companies did not hire as much as usual in the fall.

* Trade, transportation, and utilities. Shed 2,700 jobs, due primarily to losses in transportation, warehousing, retail trade, and wholesale trade - all of which have been hard hit by slower consumer spending.

* Leisure and hospitality. Lost 1,600 jobs, split among arts, entertainment/recreation and accommodation, and food services.

By contrast, jobs increased in professional sectors by 1,100 jobs in October as companies relied more on temporary workers. The financial services sector lost 200 jobs, as a steep decline in real estate was off-set by gains in finance and insurance. The information sector gained 200 jobs.
(By Todd Wallack, Globe staff)