State: Regional monthly job losses high

By Owen Boss

GARDNER — The Executive Office of Labor and Workforce Development recently released the monthly statistics for labor force, employment, and unemployment rates statewide, and revealed significant seasonal job losses for the Leominster-Fitchburg-Gardner region. Although the employment rate often drops during the summer months, Linnea Walsh, representative for the labor office, said there are several key factors that have contributed to the diminished July numbers. “The report shows that over the month the area lost a total of 1,700 jobs, and this is due largely to government declines and also because local schools are closing for the summer,” said Ms. Walsh. “That is certainly a large factor that comes into play this time of year.” According to the report, the number of residents registered as unemployed in the region rose from 4,733 to 4,991, causing the overall rate to increase to 6.9 percent from 6.5 in June. The report also showed a sharp decline in the region’s labor force, going from 73,134 to 72,399. And total employment in the regional labor market area has gone down from 51,900 in June to 50,200 for the month of July, which represents a 3.3 percent drop. Although the region has dealt with a largely seasonal decline in overall employment, Ms. Walsh said the region is still above the 50,000 reportedly employed in July just a year ago. “There are some pretty encouraging signs given where we are and again there are some seasonal factors,” said Ms. Walsh. “I would say that the area is holding steady. It is certainly not doing as well as some people would hope, but there are other areas of the state that have recorded larger job losses.” Among the few positives in the report were large monthly job gains in the fields of health services, construction and education, something Ms. Walsh said help offset losses in other areas. “Throughout the state we are continuing to see growth in education and health services, which is a key growth sector statewide,” said Ms. Walsh. “That is the bright spot if there is one, and I would say the region is holding its own.” Statewide, the preliminary unadjusted unemployment rate edged down to 5.2 percent in July from 5.3 percent in June. Mirroring state and larger national trends, this rate is up from 4.7 percent one year ago. Job estimates also show Massachusetts is continuing to gain jobs over the year while the national numbers continue to show the opposite. oboss@thegardnernews.com

Appeared on Page 5 on 8/21/2008 (Vol. 206 No. 198)