MA Unemployment Rate Highest In Nation For Second Straight Month

MASSACHUSETTS — Unemployment in Massachusetts fell to 16.1 percent in July, down from 17.4 percent in June, but the state had the highest unemployment rate in the nation for a second straight month, according to a U.S. Bureau of Labor Statistics report released Friday.

It was the first time in four months the unemployment rate fell in the state. Massachusetts was among 30 states that saw decreases in the unemployment rate, while nine states saw increases.

The national unemployment rate, which was released earlier this month, was 10.2 percent in July, down from 11.1 percent in June.

The improvement was, in part, a result of the expiration of the federal government's $600-per-week addition to state unemployment claims. Many workers opted to continue collecting unemployment, even after their workplaces reopened, as state unemployment insurance combined with the federal supplement amounted to more than they would have made by returning to their jobs.

July's unemployment rate in Massachusetts was 13.2 percentage points higher than it was in July 2019. Economic historians say the peak unemployment rate in Massachusetts came during the Great Depression in 1934, when it hit 25 percent. During the Great Recession that started in December 2007, Massachusetts' unemployment topped out at 8.3 percent.

Friday's report is based primarily on household surveys and is more comprehensive than the weekly unemployment claims released by the U.S. Department of Labor. The report offered a more complete look at the fourth full month of the coronavirus' toll on the economy.

Nationally, about 56 percent of people included in the unemployment rate are furloughed. That's historically high, but below the peak of 78 percent in April. Furloughed workers could quickly return to work if the economy continues its recovery, meaning the jobs recovery going forward may be quicker than it would in a typical recession.

Read more: Monthly unemployment report from U.S. Bureau of Labor Statistics

Dave Copeland writes for Patch and can be reached at dave.copeland@patch.com or by calling 617-433-7851. Follow him on Twitter (@CopeWrites) and Facebook (/copewrites).