Unemployment in Berkshire County rises to four-year high as job growth slows | Business

Berkshire County’s unemployment rate climbed to 4 percent in September, the highest level the region has seen in four years.

But even as unemployment rises, the labor market remains tight. Local employers are grappling with skill shortages, AI-driven hiring changes and evolving worker expectations — trends reflected across the U.S. as job growth slows and companies become more cautious.

“We have had some layoffs in the area, but we are not seeing a big uptick in candidates coming in the door looking for work, so that’s kind of interesting,” said Guin Griswold, director of employment services at Molari Employment and Healthcare Services in Pittsfield.

National job growth has also slowed in recent months. Federal data showed job losses in October followed by modest gains in November, pushing the national unemployment rate to 4.6 percent — its highest level since 2021.

Tariffs, increases in wages and the impact of AI have stalled hiring momentum as companies like Amazon, Verizon, UPS and General Motors have announced job cuts.

After 5 percent growth from 2019 to 2024, job growth slowed in 2025, said Heather Boulger, executive director of the MassHire Berkshire Workforce Board, a local organization that helps people find jobs. 

BY THE NUMBERS

In September, 63,812 people were in the Berkshire County labor force, with 61,260 employed and 2,552 collecting unemployment insurance, according to data provided by Boulger. The total number of Americans filing for jobless benefits for the week ending Dec. 13 rose to 1.92 million, according to ABC News.

The 4 percent unemployment rate in the Berkshires was close to the Massachusetts rate of 4.7 percent, and in September 2024, the county’s unemployment rate was 3.4 percent.

The last time Berkshire County’s unemployment rate was over 4 percent was in 2021 (4.9 percent), and the highest this decade was 9.4 percent in 2020. 

“It’s pretty comparable, and anything under 5 percent unemployment is considered full employment, which means that there are job opportunities for people who are looking, and it’s still keeping the economy going,” Boulger said.

Some level of unemployment is natural, Boulger said, adding that “a small amount of unemployment allows companies to hire and prevents labor shortages.” Boulger, who has been working in the field for almost 35 years, said that the workforce goes through ebbs and flows.

She added that Massachusetts has stable labor participation and fairly strong economic conditions, but did cite recent job losses in retail, manufacturing and food service sectors.

Griswold said that she has seen a slowdown in the job market and that some people are passively looking for work — meaning they are currently employed and not necessarily applying for jobs, but are keeping an eye out for a better fit or their next opportunity. She added that toward the end of the year, a lot of people get hired for companies they were temping at, as companies want to meet certain numbers by the end of the year.

HIRING PRESSURES

Boulger said the pandemic reset the economy at all levels, impacting every industry and changing workforce dynamics. In the past five years, the Berkshires have lost about 2,000 people in the labor force, she said, adding that many job seekers want more virtual or remote opportunities.

“I think job seekers have a different expectation than they did five years ago,” Boulger said.

Boulger said that challenges facing the workforce include job growth, AI integration, skill gaps, worker well-being and workplace culture. A population decrease has also impacted the workforce as 22- to 45-year-olds are migrating out of the region.

There are more than 3,000 jobs currently open in the area, Boulger said, adding that businesses are struggling to find skilled workers. The MassHire Career Center and Workforce Board are working to develop training programs and career pathways to get people the skills they need to fill those gaps. 

Artificial intelligence has also changed the hiring process in the region. Boulger said that most candidates are adapting to get noticed in the initial job screening process, and MassHire is helping people prepare their resumes.

“It seems like a very impersonal process,” she said. “A lot of our employers are still using AI to help prescreen candidates.”

LOOKING AHEAD

In the Berkshires, the largest and fastest-growing employer is health care and social assistance, Boulger said. She also highlighted educational services, retail trade, accommodations, manufacturing and the food service industry.

Griswold said that direct care workers are always in demand, something she deals with firsthand with Molari’s home care agency and its clients.

“We could bring [10 direct care workers] in tomorrow, and we’d have them all placed by next week,” she said of the agency that has been in business since 1983 staffing and recruiting home health care providers. 

Helping younger workers find jobs is also a priority, as unemployment in that age group has risen. In November, the national unemployment rate for 16- to 24-year-olds climbed to 10.6 percent, the highest since 2021, according to CNN.

Boulger said that MassHire has internship programs at the high school and college level, along with programs for young adults that connect them to career pathways in health care, manufacturing, clean energy and education.

Even with unemployment ticking up, workforce leaders say the region’s challenge is less about job availability than ensuring workers have the skills — and expectations — to meet a changing economy.