Maine’s unemployment rate has increased slightly since October, rising to 3.1 percent. Despite this, unemployment in Maine still came in below national and regional averages.
Labor force participation rates for the state also remained well below national trends, as well as those of demographically similar states.
According to a press release from the Maine Department of Labor (MDOL), preliminary seasonally adjusted numbers for 2024 mirror the trends exhibited during the previous two years, with unemployment trending lower through the spring, stabilizing at “annual lows” in the summer, and rising thereafter.
Seasonal adjustment is a statistical technique that is regularly employed to remove the influences of “predictable seasonal patterns” in order to reveal a more accurate measure of how the employment situation has evolved over time.
While summer lows and winter highs are expected for rates that are not seasonally adjusted, the MDOL explains that this is not a “usual pattern” for seasonally adjusted figures and is not something that “should be expected to persist” going forward.
Annual revisions, published in March of each year, are intended to add accuracy to the agency’s monthly estimates and smooth out patterns in the data.
“Upward or downward changes in preliminary unemployment or labor force participation rates often are not as indicative of improvement or deterioration in conditions as may appear,” the MDOL suggests, noting that many months’ specific unemployment rates will likely change as a result of the annual revisions.
The MDOL goes on to caution that, in general, monthly unemployment figures should be considered “in the context of whether they are below, near, or above” historical and nationwide averages, as opposed to how they compare from one month to the next.
November’s nationwide unemployment rate came in at 4.2 percent, while New England’s was calculated to be 3.5 percent.
In November of last year, Maine’s seasonally adjusted unemployment rate was found to be 3.4 percent, slightly higher than this year’s preliminary estimate of 3.1 percent.
Three-month averages comparing the period of June through August to September through November show a .2 percent increase in unemployment statewide.
Maine’s labor force participation rate for November came in at 60.1 percent, much higher than last November’s rate of 59.4 percent but notably lower than the current national rate of 62.5 percent.
This is reflected in the comparison of three-month averages which show a .3 percent increase in labor force participation between these two periods.
Nationally, labor force participation rates are largely unchanged in comparison to this same time last year when they came in at 62.8 percent.
Labor force participation rates are representative of the proportion of working-age individuals who are either employed or actively searching for work.
Although there are a number of different ways to calculate the labor force participation rate, the MDOL arrives at its statistics by considering all individuals over the age of 16. Consequently, retirees and other elderly individuals are included in these numbers.
As a result of this, it can be more complicated to parse these statistics, particularly given Maine’s aging population.
Looking at states with a similar average age, however, reveals that there is likely more to the story in Maine than simply an older-than-average population.
While Maine, New Hampshire, and Vermont all have a similar median age, New Hampshire and Vermont have significantly higher rates of labor force participation this month – at 65.4 percent and 65 percent respectively.
<span class="dsq-postid" data-dsqidentifier="33637 https://www.themainewire.com/?p=33637">5 Comments
So, why is Maine 6 percentage points lower than NH and VT?
I wonder how many “ departments “ there are in state government and what each one costs us . Lots of number crunchers and statisticians who can make an empty glass sound full and full glass sound empty . I believe about half of what I hear coming from Augusta. Wait till our deadbeat population learns about the new three month annual vacations that they can qualify for . Joy .
Maine has an honored history of UNDER the table work.
The State should start with landscapers and snow removal Jobs.
Then add pot growers Governor.
Its almost like allowing people to claim welfare with out even attempting to work causes higher debt and less people working.
Anyone seeking employment in Maine must ask themselves; What degree of financial slavery to Augusta s protected classes is acceptable? The participation rate seems to suggest that many Mainers are done with being tax chattel