MassBenchmarks: Bay State poised for more growth

THE MASSACHUSETTS economy is growing at a moderate, but steady, pace, according to the latest issue of MassBenchmarks.
THE MASSACHUSETTS economy is growing at a moderate, but steady, pace, according to the latest issue of MassBenchmarks.

BOSTON – The Massachusetts economy is growing at a moderate, but steady, pace, according to the latest issue of MassBenchmarks, the journal of the Massachusetts economy published by the University of Massachusetts Donahue Institute in collaboration with the Federal Reserve Bank of Boston.
Gains in gross domestic product and employment, and low unemployment were highlighted as positives by the MassBenchmarks board this week.
However, the global economy continues to pose risks. How the economy will be affected long term by Brexit, as well as declining commodity prices, which could influence arrangements with exporters, including the commonwealth’s largest trading partner, Canada, were cited as concerns.
The report noted positive improvements to the unemployment rate and workforce as the unemployment rate has stabilized to a level not seen since before the recession of 2008.
It also said employment in the state is more than 3.5 million, and employment has grown by more than 30,000 since the beginning of the year. Since the end of the recession, the state gained nearly 300,000 jobs. The unemployment rate fell to 3.6 percent in September – the last time the rate was this low was in 2001, at the end of the dot-com boom, the report said.
A problem today, the report said, is that inequality is higher.
“Many people feel left out or left behind by the economy. There is increased evidence that economic success has become elusive for many workers. The U-6 unemployment rate, which includes discouraged workers who have left the labor force and part-time workers who would prefer to work full time, has increased since 2001,” the report said.
For example, the U-6 unemployment rate was 8.2 percent for the state in September, compared with 9.7 percent for the nation. In September 2001, the state rate was 6.9 and U.S. rate was 8.7.
The report also noted migration trends, showing that for the 13 years between 2001 and 2015, Florida ranked second in states that sent migrants to Massachusetts with 151,006 (first was New York with 195,928), and first in receiving migrants from Massachusetts with 269,005.
As for housing trends, new multifamily dwellings are proving popular, especially in Greater Boston. The report said land prices in Greater Boston explain some of the shift to multifamily housing units as building has become more concentrated there.
The report ended with a bright outlook for the future, despite concerns about global uncertainty.

“The Bay State economy seems poised for continuing growth. Our industry mix, emphasizing high-end services, health care sectors, and education, fits well into domestic and global demand patterns. Happily, there is no sign that this will change in the foreseeable future,” the report concluded.

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