The percentage of the workforce that is unable to find work is a basic economic indicator.   A low unemployment rate means that the economy is strong enough to provide jobs for everyone who can work.   The unemployment rate can also measure how well, or how poorly, the skills of the workforce match the available jobs in the region.   Boston has historically had a higher unemployment rate than the region due to several factors, including a relatively high newcomer immigrant population and a large stock of the region’s affordable housing.   Lack of low-cost housing in many suburban communities prevents people with low incomes from living there.   Unemployed workers and their families typically seek housing in the cities of the inner core or in cities such as Lawrence and Lowell, to the north, or New Bedford and Fall River to the south.

How are we doing?

The unemployment rate in the City of Boston rose from 2.8% in 2000 to 6% in 2003, then declined in 2004.  In 2004, Metro Boston’s unemployment rate of 4.8% was lower than the national rate at 5.7%, suggesting regional economic strength; however, low unemployment rates may reflect population loss and a rise in discouraged workers rather than economic strength.
While these unemployment rates reflect the continuing downturn, the regional economy has not slowed as much as it did during the 1991-1993 recession, when Boston lost over 10% of its jobs and the unemployment rate spiked to nearly 9%.   

Unemployment rates also vary markedly across Boston neighborhoods.  See 3.6.3.