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June 16, 2011

Unemployment Falls, Jobs Down

In May, the Massachusetts unemployment rate fell to its lowest level since February 2009, but the state economy lost 4,000 jobs.

The May unemployment rate was 7.6 percent, down from 7.8 percent in April. That's well below the national rate of 9.1 percent, and it continues a four-month downward trend for the state number.

The contradiction between the unemployment rate and total employment numbers may be due in part to changes in the state's total labor force. The Massachusetts labor force lost 7,900 workers in May, according to the state numbers, though it has gained 24,700 workers since October 2009.

The data can also show differing results because they are collected using different methods. The unemployment rate comes from a survey of households while job estimates are based on a survey of employers.

The decline in jobs was driven largely by the loss of 2,600 government positions, but the private sector also lost 1,400 jobs.

Employment rose in a number of industries, including professional, scientific and business services; construction; manufacturing; and education and health services. Losing jobs were the leisure and hospitality; trade, transportation and utilities; and financial activities industries, as well as state government.

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