BOSTON – In an editorial board meeting, MassBenchmarks expressed concern over the sustainability of the current positive economic climate in Massachusetts, citing a tight labor market and uncertainty in federal policies as potential derailing factors of expansion.
MassBenchmarks is a journal published by the University of Massachusetts Donahue Institute in collaboration with the Federal Reserve Bank of Boston. The editorial board said that employment growth is slowing locally and nationally, at least in part to slowing labor force growth, and represents a potential sticking point for the economy.
The board also discussed the size of the state’s underutilized workforce as potential participants, both workers not in the labor force who could work and underemployed who would work more if given the chance, as a possible source of labor expansion. The board said that new federal limits on immigration were also hurting employment growth.
The board noted that uncertainty about federal policy, such as trade policies and tariffs, has weighed down the Massachusetts economy, especially as they affect global supply chains, particularly for the state’s high-tech sector.
Despite its concerns, the board again recognized that the Bay State’s economy “looks very healthy.”