BOSTON – Massachusetts’ economy is performing well, with several economic indicators either better, or close to even with pre-recession levels, according to the editorial board at the MassBenchmarks, a publication from the Federal Reserve Bank of Boston and the University of Massachusetts Donahue Institute.
The report by editor Robert Nakosteen specifically cites unemployment, wages and total jobs as key indicators that the Massachusetts economy is looking robust.
Building a Stronger Heart: Inside South County Health’s Cardiopulmonary Rehab Program
A Heart-Healthy Start to the Year February is American Heart Month—a time to raise awareness…
Learn More
Massachusetts unemployment rate decreased to 3.6 percent, 9 percentage points below the national average. In addition, the report noted that the reduction in unemployment is occurring across the state, including its “Gateway Cities,” which include Fall River and New Bedford. The report noted that historically any economic recovery in the Bay State is unevenly distributed, with the Gateways Cities seeing less prosperity than the Greater Boston Area.
The state has added more than 400,000 jobs since the end of the Great Recession, which the report states ended in 2009. The report notes that many of the jobs replaced since the recession were men’s jobs, who disproportionately fill jobs in the construction and manufacturing sectors.
However, the report notes that while low unemployment is desirable, sustained low unemployment often highlights a problem: a lack of qualified workers to fill an expanding job market, which threatens future state growth.
The board noted that major forces in the global economy are stagnating, and that the effects of a Trump administration on the Massachusetts economy have not truly been determined, so the Federal Bank of Boston warns caution with its prescribed optimism. Much of this skepticism spurs from the board’s uncertainty over the country’s new immigration policy, citing the state’s reliance on foreign workers. The report says that foreign-born workers accounted for 74 percent of the state’s population growth since 2000 and 67 percent of the state’s labor force growth. A failure to procure a steady supply of skilled foreign workers the state would limit the growth of sectors such as technology or life sciences.
Still, the board concluded that the projection for the state’s economy is positive despite the worries that persist about factors out of the state’s control.
Chris Bergenheim is the PBN web editor.
