Editorial: The pessimistic economy
UMass Chan Medical School furloughs and lays off 200 employees. Greif closes the last paper mill in Fitchburg, letting go of 71 employees. Worcester Polytechnic Institute tightens its belt and lays off 24. UMass Memorial Health pauses hiring of all non-clinical staff. The Making Opportunity Count nonprofit closes two shelters and lays off 20 staff. Clark University will streamline its degree programs and lay off up to 30% of its faculty over the next two years.
Central Massachusetts business headlines in the last four months have not been kind to employers or employees. The news hasn’t all been bad, but it’s easy to see why WBJ readers were particularly pessimistic in the 2025 Midyear Economic Forecast survey conducted from May 27 to June 18.
Of the respondents, 34% said the Central Massachusetts economy has performed worse than expected since the start of the year (vs. 23% who said better than expected); 50% said the U.S. economy will decline during the rest of the year, along with the 45% who predicted the same decline is coming for the region’s economy this year. All these figures reveal a pessimism in the local business community that didn’t show up in WBJ’s 2024 midyear and end-of-year surveys. See the full results of the Midyear Economic Forecast survey.
The pessimism from our reader survey mirrors the Massachusetts Business Confidence Index, which tumbled from optimistic territory in January and has had a firmly pessimistic economic outlook for the past three months, according to the Associated Industries of Massachusetts, which compiles the index. The main concerns employers expressed to AIM were ongoing uncertainty around tariffs, the drastic overhaul of the federal government, and attacks against the immigrant workforce.
The uncertainty caused by these major national policy changes is exacerbating long-held challenges among major institutions and industries in Central Massachusetts. The higher education industry has been suffering through a demographic downshift in the number of high school graduates, so significant cuts in their research funding and targeting of international students is putting further pressure on colleges and universities. The healthcare industry has been facing multiple crises coming out of COVID-19, and the situation has only worsened.
More than anything, businesses crave consistency, whether it comes during crises or boom times, and the first half of 2025 has been marked by tumult and upheaval. With constantly shifting sands in federal funding, trade and immigration, it’s no wonder so many Central Massachusetts business leaders are feeling uncertain about the near term.
This editorial is the opinion of the WBJ Editorial Board.
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