Reinforce Our Economic Roof
On a recent rainy day, I read an article in the Wall Street Journal that bode well for the Massachusetts economy. It showcased the cities with the fastest-growing population of college-degree holders. The upshot of the article was that degree attainment is a proxy for having a highly skilled labor force, which is what it takes to achieve economic success today.
Not surprising was the appearance of Boston at number three. But Worcester also made the top 10. The article got me thinking about how impressive the Worcester economic story has become. At its roots, the area is industrial, with more than twice the concentration of manufacturing workers than other parts of the state.
But a sizable portion of employment is in higher education and health care, considered recession-proof, along with a rising number of knowledge-based industries including green energy and biomedical firms. The economic orientation, once north and south following the Blackstone Valley, has increasingly turned east toward Boston.
Worcester has become a place where ambitious things get done, like City Square’s development and UMass Medical’s Albert Sherman Center. With these in place, many watchers are “cautiously optimistic” about the progress of recovery in the central and eastern parts of the state. Yet, something just isn’t right, especially when you dig into the numbers. Storm clouds still hang over workers and businesses.
Despite growth in the gross state product, recovery across the state’s labor market has been slow. Total jobs are off by almost 150,000 from their 2001 peak. The average unmployment duration has risen to 35 weeks, and another 200,000 workers are employed part time but want full-time work.
Businesses large and small await customers before hiring. Insecurity leaves customers reluctant to spend. The state’s defense contractors and research community await bad news on federal budgets. Also, global demand for high-tech products and services has flattened out and the Euro currency zone is in crisis. These issues especially concern our state’s manufacturers who depend on export markets.
These developments are likely to slow both state and Central Massachusetts growth in the coming months. The economy is all wet, but we need to do more than push mops and buckets around for solutions. We should look to shore up our economic roof. This requires continued investments in the schools, services, basic infrastructures, and the civic and physical environments of communities. It also includes the need to have development-ready buildings and sites while offering a cost-competitive business environment.
Wishing the rain away won’t make it so. Strong businesses, education, and infrastructure will. It’s time to roll up our sleeves, join together as Worcester has demonstrated can be done, and reinforce the roof!
Dr. Martin Romitti is director of economic and public policy research at the University of Massachusetts Donahue Institute and Managing Editor of MassBenchmarks, the journal of the Massachusetts economy published by UMass and the Federal Reserve Bank of Boston.
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