Unemployment rate holds at 4.9%; Stock market, increased savings boost retirement accounts

The state’s unemployment rate remained unchanged at 4.9% in July, the Massachusetts Executive Office of Labor and Workforce Development announced.

The Bureau of Labor Statistics’ preliminary job estimates indicate Massachusetts gained 43,400 jobs in July. That follows last month’s gain of 11,200 jobs.

From July 2020 to July 2021, Massachusetts gained an estimated 254,200 jobs.

The leisure and hospitality sector saw the largest gain of 83,600 jobs over the year, followed by professional and business services, with 44,400 jobs added.

The July unemployment rate was 0.5 of a percentage point below the national rate of 5.4% reported by the Bureau of Labor Statistics.

Stock market, increased savings boost retirement accounts

Solid stock market gains through much of the pandemic and workers putting more of their pay toward their golden years are paying off for many retirement savers.

The average 401(k) plan balance grew 24% to a record $129,300 in the second quarter from a year earlier, according to a review of 19.8 million accounts by Fidelity Investments.

The median balance, a better measure of the typical plan size, was only $29,000, up 22% from a year earlier. Just 60 million Americans actively participated in 401(k) plans last year, according to the Investment Company Institute, an association representing investment funds.

Retirement plans also got a boost as contributions by employees, including more than half of Gen-Z workers, increased to an all-time high in the second quarter.