Unemployment rates in the Franklin Hampshire region are at 3.8% as of this past June, according to MassHire Franklin Hampshire’s 2026 Employment Trends Report.
That’s lower than the statewide unemployment rate and the region’s unemployment rate this time last year.
The unemployment rate is down 0.3% in the Franklin Hampshire Region compared to last year, and is 0.4% lower than the current statewide unemployment rate. The employment trends report also notes that the total number of people employed in the region is down compared to last year; however, MassHire Labor Market Research Specialist Giovanni Richetelli explained that the unemployment rate is not going up because, as the population ages, more and more people are leaving the workforce.
“The Franklin Hampshire Region is different than the state,” Richetelli said. “Specifically in Franklin County, it’s older.”
According to the United States Census, approximately 27.7% of Franklin County’s population is over the age of 65. Richetelli said when people retire, they are not considered unemployed as they are not seeking new employment. When people retire, they leave the labor force entirely, so in a county with an older-than-average population, the labor force can be expected to keep shrinking without affecting the unemployment rate.
“Based on my research it has a lot to do with the aging population,” he said. “They leave the labor force, but they don’t go on unemployment.”
In the report, MassHire explained that this does impact the overall participation rate, as more people stop “participating” in the workforce.
“While the unemployment rate at both the state level and regional level are down by 0.3% year over year, the bigger picture is not so clear. During this same time, the Franklin Hampshire region saw a decrease in total employment of around 2.2%, losing around 2,800 jobs,” the report stated. “At the state level, Massachusetts saw a decrease in total employment of 1.57%, resulting in a loss of around 60,000 jobs. Simultaneously, both the state and region saw their labor force participation rates decrease by 1.3% and 1.4%, respectively. So, while the rate of unemployment has decreased, the labor force has decreased along with it. This scenario is not exclusive to Massachusetts. The unemployment rate of the United States has remained flat over the past year; however, the labor force participation rate has decreased to its lowest level since 1976, excluding April and May of 2020.”
Richetelli said that while people have been leaving the labor force, they are not necessarily being replaced.
“Job postings for the region have been declining,” Richetelli said. “In 2026 there’s been 1,200 less job postings… we expect that trend to continue.”
Jessye Deane, executive director of the Franklin County Chamber of Commerce, said that the aging population is not necessarily the problem the labor market faces; she said the lack of housing for young people is a factor preventing the labor force from growing.
“Our senior workforce isn’t a problem to solve. Franklin County has one of the most reliable workforces in the state, but our 0.3% homeowner vacancy rate doesn’t leave a lot of room
for young workers to live, and that housing squeeze makes it hard to build a solid bench behind them,” Deane said in an email. “Fifty-eight percent of Franklin County
residents are over 40, and employers across every sector tell us recruitment and retention is their biggest challenge, and they can’t recruit or retain employees if those workers have nowhere to live. Strategic housing development is economic development.”
Mark Rembert, the chief economist for the Executive Office of Labor and Workforce Development’s Department of Economic Research, said in a written statement that the national unemployment rate is 4.1%, and that while retirement of older workers has impacted the statewide workforce, it has also resulted in a lower rate of unemployment in younger workers.
“While retirements among older workers continue to limit labor force growth, Massachusetts is experiencing relatively low unemployment among workers aged 25 to 54,” Rembert said. “Over the past 12 months, the unemployment rate among workers aged 25-54 in Massachusetts was lower than peer states like Texas, New Jersey, New York and California.”
Richetelli said some industries have grown, particularly education, health care, and public administration.
“Health care is remaining strong,” Richetelli said. “I’d expect to see health care continue to grow.”
In MassHire’s quarterly labor market reports, Baystate Health and Cooley Dickinson have consistently remained two of the largest employers in Franklin County. The health care industry gained 164 jobs in the fourth quarter alone.
In a written statement, Baystate Health Communications Manager Heather Duggan said that some of the roles seeing growing demand are surgical and radiology technicians.
“Although our workforce needs are relatively consistent year over year, we maintain an agile approach to workforce development. We focus on strengthening talent pipelines, building partnerships and expanding our team’s skills,” Duggan wrote. “Ongoing needs include clinical roles such as surgical technicians, radiology technicians, and respiratory therapists, as well as support roles like food service. We work with local educational and training institutions to address these needs and provide employees with opportunities to develop new skills and advance their careers at Baystate Health.”
She added that the hospital considers it a great responsibility to be one of the largest employers in the region, and to support its staff so they can then provide care for the region.
“Baystate Health is rooted here and serving here, and being one of the region’s largest employers is an important part of our role as a health and economic pillar of western Massachusetts. Our team members not only provide essential care to our neighbors and families, but also live, work and contribute to the communities we serve,” Duggan said. “Our continued investment in our workforce demonstrates our commitment to providing compassionate, high-quality, and accessible care close to home, while also providing opportunities for people to build careers and families in the communities they call home.”
Richetelli said that the education market saw a dip in employment in the third quarter, and a rise in the fourth quarter, which does align with the school year and when schools traditionally see retirements and employees leave in the summer, and new staff are hired for the start of the new year.
The quarterly employment reports note that Northfield Mount Hermon is one of the largest employers in Franklin County, alongside other educational institutions in the region, such as the University of Massachusetts Amherst, Smith College and Amherst College. Maureen Turner, director of editorial strategy for Northfield Mount Hermon, confirmed that the school employs 350 people and that staffing levels have stayed consistent in recent years.
“We have added new staff as needed — for example, the addition of athletics positions to support the opening this fall of our new ice hockey arena and the conversion of our old hockey rink into a multiuse field house,” Turner said in a written statement.
She noted that NMH’s mission is to educate students to lead and serve with humanity and purpose in communities around the world, and the school can’t do that without a committed staff.
“We’re fortunate to have a talented, dedicated team of employees and are immensely grateful for the many ways they support our students and our entire school. In turn, we take seriously our obligation to support our employees and the local communities we all call home,” Turner said. “That’s been reflected in a number of policies and initiatives over the past decade, including establishing a living wage, increasing faculty salaries to be competitive with other schools, and increasing employer contributions to our retirement plan across the board.
“We want NMH to be a place where an employee can develop a sense of belonging and purpose and want to be here for the long term. It’s a source of pride for us that we have many employees who’ve dedicated decades to our school community,” she continued. “NMH’s Frieda Jordan Society — named in honor of a beloved employee of more than six decades — recognizes employees who’ve worked here for at least 25 years. Right now, 33 current employees are members.”
Richetelli said that other growing industries in the region include construction and transportation, and Deane highlighted the continued importance of outdoor recreation in the county.
“Western MA has gained recognition as Massachusetts’ playground, and for Franklin County, outdoor rec is a growing part of our payroll,” she wrote.
MassHire reports that while some industries have seen growth this year, others have struggled in the Franklin Hampshire region, particularly manufacturing and administrative support. The report states that external factors such as tariffs may have pushed manufacturing elsewhere, and growing use of artificial intelligence has led to cuts in administrative support roles.
“With labor markets contracting and economic conditions tightening, on both a local and national level, there are currently many challenges being faced by both job seekers and employers. While the Franklin Hampshire region is experiencing many challenges, there are bright spots such as the stability in its priority industries and signs of growth in some of its smaller regional industries,” the MassHire report states. “Moving forward, it will be important to monitor these employment trends to support continued growth in the smaller, up and coming industries and maintain strength in the region’s priority industries which are the foundation of the local economy.”
