State jobless rate up again

LYNN – The state’s unemployment rate spiked again in August, pushing upward from 8.8 percent to 9.1 percent.The latest statistics, released Friday by the Executive Office of Labor and Workforce Development, indicate that Massachusetts continues to lose jobs.Professional, scientific and business services, and education and health services gained the most jobs in August, while construction and financial activities recorded the largest monthly declines, according to Alison Harris, a spokeswoman for the labor office.The August national unemployment rate was 9.7 percent compared to 9.4 percent in July.Harris noted that at 3.1 million jobs statewide are down 105,700 or 3.2 percent from one year ago. However, education and health services, and leisure and hospitality recorded higher job numbers than a year ago, she said.Professional, scientific and business services and trade, transportation and utilities recorded the largest declines over the year. Not surprisingly, the construction industry continued to show the highest rate of job loss.The labor office will release local employment statistics on Sept. 22.To further exacerbate the situation, the Massachusetts Unemployment Insurance Trust Fund – the pool of state money that covers unemployment checks – will not be solvent until late 2013. As a result, employers can expect an average unemployment insurance rate increase next year of $200 per employee, state labor officials announced earlier this week.The fund is comprised of employer and government contributions. Since it is not sufficient to cover the unemployment checks, the state will rely on federal loans for the next four years.Labor and Workforce Development Secretary Suzanne Bump said the fund has been drawn down rapidly over the past year and could have a $55 million deficit by Dec. 31.Bump said Massachusetts lost 109,400 jobs in the past year. Due to skyrocketing unemployment, employers are likely to experience an average $200 increase in contributions per employee, putting the per-employee average at $800.Many Massachusetts residents have already exhausted their unemployment benefits or are about to do so. According to Bump, the labor office has launched an effort to notify long-term unemployed residents who have exhausted their unemployment benefits about state resources and safety net services that can assist them during these challenging economic times.In July, Gov. Deval Patrick and the state Legislature successfully moved to prevent approximately 85,000 claimants from losing their unemployment benefits. Many of these individuals will continue to receive additional payments.In some cases, individuals who are cycling off their benefits made claims for a maximum of 79 weeks.Officials estimate that 21,000 Massachusetts residents will exhaust their benefits by Thanksgiving. Nationwide, about 400,000 will receive their final checks in the next couple of months, Bump said.The labor office’s Division of Unemployment Assistance has been working closely with departments within the Executive Office of Health and Human Services, said Bump, adding that the state’s 37 One-Stop Career Centers – like the one on Union Street in Lynn – are preparing to answer questions and offer information about services that could be useful to individuals and families losing benefits.Claimants can log on at www.mass.gov/dua/webcert and click on ‘check the status of your claim’, to check balances and the date of their most recent payment. If someone who has exhausted benefits has any questions about unemployment insurance, they can call 877-626-6800.