Massachusetts’ labor market showed modest improvement in September as employers added 3,500 jobs, partially reversing a revised loss of 5,600 jobs in August, according to state-released federal data. The gains were primarily driven by growth in financial activities and professional and business services, two sectors that had been contracting in recent months. Meanwhile, private education and health services, leisure and hospitality, and manufacturing experienced job declines.

The state’s labor force—the total number of people employed or actively seeking work—increased by its largest margin in more than two years, suggesting that more residents are confident in the availability of employment opportunities. Despite these changes, the unemployment rate remained steady at 4.3 percent, slightly above the national rate of 4.2 percent.

The Massachusetts labor market has been characterized by volatility throughout the year, with alternating periods of job gains and losses. However, recent data indicate a gradual stabilization and forward movement.

This report is the final employment update before the upcoming gubernatorial election, scheduled for next month, where Democratic incumbent Maura Healey faces Republican challenger Mike Minogue. The economy has been a focal point in the campaign. Minogue has criticized Healey’s economic record, positioning it as a weakness. Healey, on the other hand, has underscored the state’s economic growth, noting that Massachusetts’ gross domestic product (GDP) expanded at a faster pace than the national average during the first half of the year. She has also attributed the state’s high cost of living to policies at the federal level under President Donald Trump.

Since taking office in January 2023, Healey’s administration has seen limited employment growth overall, though hiring has accelerated in recent months, with over 16,000 jobs added since September 2025. The coming election will test voter sentiment on how these economic trends influence statewide priorities.