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Mass. unemployment rate inches higher as more people start job searches

The jobless rate was 3 percent last month, up from 2.9 percent in April, according to the Executive Office of Labor and Workforce Development

Massachusetts employers added 4,200 jobs in May.Jessica Rinaldi/Globe staff/file

The state’s unemployment rate ticked higher in May as the number of people looking for work increased.

The jobless rate was 3 percent last month, up from 2.9 percent in April, the Executive Office of Labor and Workforce Development said Friday. The national unemployment rate, released earlier this month, was 4 percent.

Massachusetts employers added 4,200 jobs last month, recouping the revised loss of 3,800 jobs in April. Employment rose to 3.73 million but remained below the level in February 2020, just prior to the onset of the pandemic.

Job growth in Massachusetts and across the country has moderated. But the job market remains tight by historical measures as the economy expands at a slower but still healthy rate.

The state’s unemployment rate will average 3.2 percent this year, according to projections from Moody’s Analytics. The average last year was 3.3 percent.

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The labor force — the number of people with a job or looking for one — rose by 13,600 in May to 3.78 million, pushing the participation rate to 65.3 percent, the highest since July 2022. The participation rate — the labor force as a percentage of the adult population — stood at 66.1 percent in February 2020.

Employment gains were led last month by the leisure and hospitality sector, which saw an increase of 2,900 jobs. Education and health services added 2,500 jobs, while construction gained 1,400 jobs.


Larry Edelman can be reached at larry.edelman@globe.com.