Massachusetts’ unemployment rate was 4.3% in September 2026, unchanged from August and down from 4.6% a year earlier, according to seasonally adjusted estimates from the U.S. Bureau of Labor Statistics. Employers in the state added about 16,300 nonfarm jobs over the year, but the state’s labor force shrank by about 59,500 people, and several industries tied to Boston’s economy, including information and leisure and hospitality, lost jobs. This Massachusetts jobs report breaks down the latest federal numbers.
Massachusetts jobs report: the key numbers
| Measure (seasonally adjusted) | Sept. 2026 | Sept. 2025 | Change |
|---|---|---|---|
| Massachusetts unemployment rate | 4.3% | 4.6% | -0.3 pts |
| U.S. unemployment rate | 4.2% | 4.4% | -0.2 pts |
| Massachusetts labor force | 3,880,158 | 3,939,694 | -59,536 |
| Unemployed residents | 166,882 | 181,092 | -14,210 |
| Total nonfarm jobs | 3,711,000 | 3,694,700 | +16,300 |
| Private-sector jobs | 3,234,200 | 3,221,200 | +13,000 |
Source: BLS Local Area Unemployment Statistics series LASST250000000000003, LASST250000000000006 and LASST250000000000004; national rate LNS14000000; Current Employment Statistics series SMS25000000000000001 and SMS25000000500000001. Data retrieved Oct. 26, 2026. Monthly state estimates are preliminary and are revised.
Why the rate fell while the labor force shrank
The drop in the unemployment rate came with both fewer unemployed residents and a smaller labor force. The BLS counts people in the labor force only if they are working or actively looking for work. A falling labor force can reflect retirements, people leaving the state or people who stop searching, so a lower unemployment rate does not by itself mean more Massachusetts residents have jobs. The BLS household survey and the employer payroll survey measure different things, and they can move in different directions from month to month.
Industries gaining and losing jobs
BLS payroll data show health care and social assistance remains the state’s growth engine. That sector employed 661,200 people in September 2026, up 8,700 from a year earlier (series SMS25000006562000001). Boston’s large hospital systems account for a significant share of that workforce, even as some have announced cuts, including Mass General Brigham’s clinical program layoffs.
Other sectors lost ground over the year:
- Information: 87,300 jobs, down 2,500 (SMS25000005000000001). Software and media companies are in this category. Cambridge-based HubSpot announced in October that it is cutting nearly 660 jobs worldwide.
- Leisure and hospitality: 359,800 jobs, down 3,500 (SMS25000007000000001).
- Professional, scientific and technical services: 354,900 jobs, roughly flat, down 300 (SMS25000006054000001). This group includes many research, consulting and engineering firms in the Boston area.
Boston metro and cost-of-living picture
For the Boston-Cambridge-Newton metro area, the BLS not seasonally adjusted unemployment rate was 4.1% in August 2026, the latest month available, compared with 4.4% in August 2025 (series LAUMT251446000000003). Metro data are not seasonally adjusted, so they are best compared with the same month a year earlier.
Prices continue to rise faster than the Federal Reserve’s 2% target. The BLS consumer price index for the Boston area was 362.575 in September 2026, about 3.8% higher than in September 2025 (series CUURS11ASA0). The same series is published on FRED, the St. Louis Fed’s data site.
Longer-term BLS county data show the scale of Boston’s economy. Under the Quarterly Census of Employment and Wages, Suffolk County averaged 712,462 jobs at 34,189 establishments in 2025, down 0.2% from 2024, with average annual pay of $138,226. Statewide, employment averaged 3.63 million, down 0.3%, with average pay of $100,085.
What the numbers mean for Boston employers
For businesses, the mix of a lower jobless rate and a smaller labor force points to a tight pool of available workers rather than a hiring boom. Payroll growth of about 16,300 jobs over 12 months equals roughly 0.4% of the state’s nonfarm workforce. Most of that gain came from health care and social assistance, while industries such as information and hospitality shed jobs. Employers can file WARN notices, register with the unemployment system and request WorkShare approval through the state Department of Unemployment Assistance.
Layoff notices to watch
Massachusetts employers that plan large layoffs must file notices under the federal WARN Act, and the state posts them on its WARN layoff and closure updates page. Recent notices include EyePoint’s 105 jobs in Northbridge and Watertown and Retail Therapy’s 214 jobs at Frugal Fannie’s in Westwood. Workers who lose a job can find help through MassHire Rapid Response and our unemployment benefits guide.
More Boston-area jobs and company news is on our Boston Business & Economy hub and the Boston job market tracker.
Photo: Boston skyline at dusk from Jeffries Point, November 2025, by 4300streetcar, via Wikimedia Commons, licensed CC BY 4.0.
Sources
- BLS Local Area Unemployment Statistics: state and metro unemployment rates, labor force, unemployed.
- BLS State and Metro Area Employment (CES): nonfarm, private and industry payrolls.
- BLS CPI, Boston-Cambridge-Newton: September 2026 index.
- BLS Quarterly Census of Employment and Wages: 2025 county and state annual averages.
- Mass.gov WARN layoff and closure updates: EyePoint and Retail Therapy notices.
Additional sources
- FRED: CPI for Boston-Cambridge-Newton
- FRED: Massachusetts unemployment rate (MAUR)
- BLS Economy at a Glance: Massachusetts
- MassHire Rapid Response (Mass.gov)
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