Maine’s unemployment rate remained steady in May at 3.4 percent, according to new data from the Maine Department of Labor (MDOL).
Despite being largely unchanged from recent months, joblessness has risen about half a percent since this same time last year — slightly higher than the national rate..
Nationwide, unemployment continues to hover around 4 percent, up just two-tenths of a percent since May of 2024.
Hiring rates in the hospitality industry, as well as in other tourism related industries, was slower than normal for this time of year.
The MDOL notes the extraordinarily rainy weather experienced throughout the state over the last month in connection with this statistic, appearing to imply that this may have been a contributing factor.
Labor force participation rates in Maine were again low in May, coming in below national and regionally averages.
While May’s labor force participation rate came in at 62.4 percent nationally, Maine’s was calculated at 60 percent. After having risen slowly but steadily over the course of a few months, that rate has once again begun to trend downward.
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, it can be more complicated to parse these statistics, particularly given Maine’s aging population.
Looking at states with a similar average age, however, suggests 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 65.5 percent and 64.4 percent respectively.
Maine’s private sector work week averaged 33.3 hours in May with earnings averaging at $32.28 per hour. While the amount of hours worked has remained largely unchanged since this same time last year, earnings are up about 2.4 percent.
Those working in construction had the longest weeks, while leisure and hospitality employees had the shortest weeks. These workers also, however, had the lowest earnings. Professional and business service employees had the highest earnings.
The MDOL estimates for May were derived from two monthly surveys, the Current Population Survey and the Current Employment Statistics survey.
Although preliminary estimates from these surveys sometimes diverge, they often become more aligned over extended periods of time.
