September 25, 2007
State economy growing but uncertain
By Matthew L. Brown
According to the latest MassBenchmarks Bulletin, the current performance of the state's economy can best be characterized as growing but not at a fast pace, and not evenly across the state’s economic sectors.
In the midst of the national subprime mortgage collapse, slumping home sales and prices, the Massachusetts economy is growing, especially in certain sectors. The state added 34,200 new jobs during the first six months of the year compared to the first half of 2006. The state's job growth rate was 1.1 percent, while the U.S. job growth rate was about 1.5 percent.
The state’s job growth was heavily concentrated in two sectors: education and health services, and professional and business services. The state experienced little job growth or job declines in construction, manufacturing, retail trade, finance and information services.
But despite the employment increases relative to a year earlier, the state still has considerably fewer jobs than it had at the peak in the first quarter of 2001.
The MassBenchmarks Bulletin expressed concern about the long-term problem of slow labor force growth in the state, and the continuing exodus of young, well-educated workers to other states.
Both slow job growth and expensive housing contribute to this pattern of out-migration, the bulletin said. Net out-migration from the state has been going on for many years, but generally abates as the economy experiences expansion. During the current expansion, however, net out-migration has remained stubbornly high, according to the bulletin.
The bulletin is an economic analysis compiled by several University of Massachsuetts professors.
In the midst of the national subprime mortgage collapse, slumping home sales and prices, the Massachusetts economy is growing, especially in certain sectors. The state added 34,200 new jobs during the first six months of the year compared to the first half of 2006. The state's job growth rate was 1.1 percent, while the U.S. job growth rate was about 1.5 percent.
The state’s job growth was heavily concentrated in two sectors: education and health services, and professional and business services. The state experienced little job growth or job declines in construction, manufacturing, retail trade, finance and information services.
But despite the employment increases relative to a year earlier, the state still has considerably fewer jobs than it had at the peak in the first quarter of 2001.
The MassBenchmarks Bulletin expressed concern about the long-term problem of slow labor force growth in the state, and the continuing exodus of young, well-educated workers to other states.
Both slow job growth and expensive housing contribute to this pattern of out-migration, the bulletin said. Net out-migration from the state has been going on for many years, but generally abates as the economy experiences expansion. During the current expansion, however, net out-migration has remained stubbornly high, according to the bulletin.
The bulletin is an economic analysis compiled by several University of Massachsuetts professors.
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