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October 28, 2020

Central Mass. sees improving unemployment rates

Photo | Grant Welker Worcester Polytechnic Institute is building a new student services and classroom building next to its Gordon Library.

Unemployment rates dropped in September in the Worcester and northern Worcester County areas despite rising numbers of new unemployment claims since late summer.

The unemployment rate for the Worcester area dropped to 8.8% from 10.3% in August, according to new data released Wednesday by the U.S. Bureau of Labor Statistics. The Fitchburg, Leominster and Gardner area also improved, to 10.6% from 12.6%.

The Worcester area was tied for 321st nationally among 389 measured by the Bureau of Labor Statistics — an improvement from a few months ago but still among the nation's worst. The Fitchburg, Leominster and Gardner area ranked 372nd.

Those improving but still high rates correspond with the state's better unemployment rate in September of 9.6%, down from 11.4% the prior month. The national unemployment rate has also improved, from 8.4% in August to from 7.9%.

Those numbers may not be completely reflecting the economic reality about eight months into the coronavirus pandemic, at least in Massachusetts. Unemployment rates don't factor in those who've stopped actively looking for work.

New unemployment claims have risen in Massachusetts to the highest levels in four and a half months, with nearly 45,000 claims in the week ending Oct. 17, according to the U.S. Department of Labor. The increase in cases has come across a range of industries, from retail, food and accommodation, and health and social assistance, which were hit hardest early on during the pandemic, to jobs that had been relatively spared, including manufacturing, education, and professional and technical services, where claims have risen by multitudes since early August.

Worcester area employment remains down 18,900 from a year ago, a drop of 6.5%. The area has regained 27,400 jobs since a low point in April. For the Fitchburg, Leominster and Gardner area, employment is down 4,800 jobs, or 9% from a year ago, but up 4,100 jobs, or 9.2% from April.

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