December 18, 2008 10:14 AM

Five-year high for Mass. unemployment
Posted by Jesse Nunesat 10:14 AM

This article originally appeared in the Globe's Business News Updates blog.

By Robert Gavin, Globe Staff

Massachusetts employers slashed jobs for the third consecutive month, and state unemployment rate soared last month to its highest level in more than five years, the state Department of Workforce Development reported.

Massachusetts lost 8,000 jobs in November, following losses of 8,000 in October and more than 3,000 in September, the state reported. The unemployment rate jumped four-tenths of a point to 5.9 percent from 5.5 percent in October. That's the highest rate since August 2003 and matches the peak unemployment rate of the last 2001 recession.

The state's job losses followed a steep decline in national employment reported earlier this month as the current recession worsened. The nation shed 533,000 jobs in November, and the US unemployment rate hit 6.7 percent, the highest since 1993.

Job losses were broad based in Massachusetts. Even normally stable education and health services, which includes universities and hospitals, sliced 1,500 jobs. Of major sectors, only government and information, which includes software publishers, added jobs. Government payrolls added 600 jobs and information 200 jobs.

Professional and business services, a key sector that includes law firms, management consultants, and technical and scientific firms, shed 2,000 jobs in November. Construction firms cut 1,700 jobs, manufacturers 1,200 jobs, and financial companies 200.

After adding jobs earlier this year, the state has lost more than 17,000 jobs over the past six months as the national recession has taken its toll here. Several economic forecasts project the state will continue to lose jobs into 2010.