WORKFORCE CONNECTIONS - Vol. 66 | | |
In This Issue:
- State & Federal Policy Updates
- MWA Updates: Upcoming events from our partners.
- News From Around the Sector: Jobs, funding, news and updates
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State Updates
Fiscal year 2027
State Budget Process Begins
On January 28, Governor Healey released her budget proposal for Fiscal Year 2027 (FY27), a $63.36 billion spending plan that represents a $2.3 billion (3.8 percent) increase over FY26.
The spending package includes a $100 million deposit into the Stabilization Fund—also known as the Rainy Day Fund—to prepare for potential funding volatility as the Commonwealth continues to grapple with federal uncertainty.
The FY27 funding landscape for workforce development spending remains relatively level with FY26, with small increases or decreases across MWA-tracked line items.
Below is a list of MWA budget priorities and their funding levels under the Governor’s proposal:
- MassHire Career Centers: $8,089,373
- Workforce Competitiveness Trust Fund (WCTF): $8,000,000
- Re-Entry Demonstration: $2,450,250
- YouthWorks/Summer Jobs: $15,363,000
- Career Technical Institutes: $8,898,244
- Registered Apprenticeship: $3,333,577
- Employment Program for Young Adults with Disabilities: $1,000,000
- Department of Economic Research: $796,233
- School-to-Career Connecting Activities: $6,472,081
- Increasing Access to Career & Technical Education: $3,087,315
To view the full FY27 Budget Proposal, see: H2 (7).pdf
In addition to fiscal appropriations, the Governor’s proposal contains two policy initiatives impacting workforce development.
Simplifying Teen Employment Permits Act (STEP Act) - The proposal aims to modernize the youth work permit process by replacing the physical paper-based system with an online portal. Additionally, the reform would allow students to obtain permit pre-approval before receiving a job offer. The STEP Act expands who may sign medical forms to include nurse practitioners and physician assistants and strengthens worker protections for youth.
Workforce Investment Trust Fund Reforms - Currently under the auspices of the Executive Office of Economic Development (EOED), this trust fund was created and is funded through revenues from sports wagering. This funding stream has previously been used by EOED to support programs such as the Advanced Manufacturing Program administered by the Mass Technology Collaborative.
The proposed reform would allow the fund to be co-managed by EOED and the Executive Office of Labor & Workforce Development (EOLWD). Funds would be directed to support existing workforce development programs and grants serving low-income communities, unemployed or underemployed individuals, youth and young adults, apprenticeships, work-based learning experiences, and vocational or professional training programs.
With the Governor’s proposal now released, the process shifts to the Legislature, where hearings by the Joint Committee on Ways & Means will run through March to review the proposal. The House is expected to take up its budget proposal in late April, followed by the Senate in May.
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December 2025
Unemployment Rate & Economic Analysis
The Executive Office of Labor and Workforce Development released the unemployment rate of 4.8% for December 2025, compared to the national rate of 4.8%. Click here to read the 01/23/2026 state press release.
The labor force participation rate, the share of the working age population employed and unemployed, decreased to 66.5%.
- Payroll jobs increased by 4,600 in December. Since September, Massachusetts has gained 13,500 payroll jobs.
- The Massachusetts unemployment rate in December increased slightly to 4.8%.
- The state’s labor force participation rate decreased slightly to 66.5%. Since January 2023, Massachusetts labor force has increased by 176,800 a 4.7% change which places Massachusetts in the top 10 among states.
- The labor force decreased in December by 7,800 for a total of approximately 3,946,000.
Click here to see the Massachusetts December 2025 Labor Market Information Data Sheet.
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Federal Updates
Federal Budget Finally Finished
Although Federal Fiscal Year 2026 technically began on October 1, 2025, a long-overdue full fiscal year budget was passed by Congress and signed by the President following a brief government shutdown in early February.
Funding levels for WIOA and other workforce development programs are largely level with FY24—the last time Congress passed a full-year budget.
With passage of the budget, immediate concerns regarding block-granting proposals contained in earlier drafts have subsided for now. Attention now shifts to WIOA reauthorization to determine whether a previously introduced bipartisan proposal can be revived in Congress.
Below is the full list of WIOA-related appropriations for FY26:
- Workforce Innovation and Opportunity Act (WIOA) Title I – State Formula Grants Total: $2,919,332,000
- WIOA Adult: $875,649,000
- WIOA Dislocated Worker: $1,095,553,000
- WIOA Youth: $948,130,000
- Wagner-Peyser/Employment Service Grants: $653,639,000
- Workforce Data Quality Initiative Grants: $6,000,000
- Apprenticeship Grants: $285,000,000
- Dislocated Worker National Reserve: $300,859,000
- Native American Programs: $62,500,000
- Ex-Offender Activities: $110,000,000
- Job Corps: $1,603,325,000
- Migrant and Seasonal Farmworkers: $97,396,000
- YouthBuild: $105,000,000
- Senior Community Service Employment Program: $395,000,000
- Trade Adjustment Assistance: $50,300,000
- Career and Technical Education State Grants: $1,439,848,000
- Adult Education State Grants and National Leadership Activities: $715,455,000
- Combined CTE and Adult Education: $2,155,303,000
- Vocational Rehabilitation: $4,253,834,000
- Strengthen Community College Grant Program: $65,000,000
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MWA Executive Board of Directors Welcomes Judi Vigna
MWA is delighted to announce Judi Vigna, Founder and CEO of Specialized Career Guildance, to our Board of Directors.
With over two decades of leadership experience, Judi has a remarkable record of strengthening organizations and expanding opportunities for youth. She has served in key roles with Beth Israel Deaconess-Plymouth, Women for UMass Amherst, the Plymouth Youth Development Collaborative, and Healthy Plymouth, where she founded the Youth Engagement Committee. Judi is passionate about preparing first-generation and underrepresented students for success and helping communities and employers grow together.
Please join us in welcoming Judi Vigna—a dedicated community leader and advocate for workforce equity to our board. We are excited for the expertise, heart, and vision she brings to our mission.
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MassHire Springfield Career Center Winter Job Expo a Great Success!
On Tuesday, February 3rd, MassHire Springfield Career Center hosted their Winter Job Expo in Center Court at the Basketball Hall of Fame.
The event drew an incredible turnout, with 567 job seekers connecting directly with 46 hiring employers across a range of industries.
The energy and enthusiasm in the room underscored the strength of their regional workforce and the commitment of local businesses to providing meaningful career opportunities.
Please see here for more information.
| | | | NEWS FROM AROUND THE SECTOR | | |
Here is a just sample of the events, funding opportunities, jobs, and more posted around the Commonwealth:
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