After record year, Worcester economy dips in 2017

WBJ File Thomas White, associate professor in the Department of Economic and Global Studies at Assumption College, puts out the Worcester Economic Index quarterly.

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Following its best year since the Great Recession, the Worcester economy dipped slightly in the first quarter of 2017, as unemployment rose, according to the Worcester Economic Index from Assumption College.

The WEI -- estimated by Assumption Professor Thomas White using data from the Bureau of Labor Statistics and local information such as help-wanted advertisements, new business incorporations and statewide unemployment claims -- scored at a 108.9 for the first quarter.

Since December, the WEI declined 0.4 percent on an annualized basis after hitting a score of 111.3 for 2016, which was the index's best score since White started the ranking in 2007.

This year's dip was driven by Worcester’s unemployment rate increasing to 4 percent in March, slightly above the state rate of 3.6 percent, but still below the 4.5 percent national rate. Unemployment in Worcester was 5 percent in March 2016.

White expects the economy to improve for the rest of the year, although with modest growth over the next six months, from 0.4 percent to 0.6 percent.

“Looking forward, the WEI is expected to return to positive growth over the coming months,” White said. “The slow growth forecast is due to the underperforming first quarter results as all of the national and local leading indicators followed for this report are providing neutral or positive signals at this time.”