Worcester economy had best year since Great Recession

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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The Worcester economy had its strongest year since the Great Recession, finishing out with 2.1-percent growth in the fourth quarter, according to Assumption College’s Worcester Economic Index.

WEI, compiled quarterly by Assumption economics professor Thomas White, examines U.S. Bureau of Labor Statistics data on employment and unemployment for the Worcester metropolitan area, all of which have improved over the past year. White also looks at local data showing online help-wanted advertisements, new business incorporations and statewide initial unemployment claims.

Overall, White placed WEI with a score of 111.3, which is the highest the WEI has been since White started ranking the local economy in 2007.

The data shows the Greater Worcester unemployment rate fell to 3.0 percent in December from 4.8 percent in December 2015. Employment in the Worcester area rose 2.3 percent over the same time period.

“Over the course of 2016, all three of the variables used to compute the WEI moved in a positive direction,” said White in a press release. “Compared to December 2015, the WEI finished the year up 3 percent, which marks the highest annual growth since before the Great Recession.”

Locally, online help-wanted advertisements fell 21 percent, compared to 9 percent on the national level since December 2015. New business incorporations are up 9.4 percent from a year ago.

Unemployment claims are up 1.5 percent since December 2015, which is a negative indicator of the Worcester economy, White said, but small enough to not impact the overall growth of the local economy.