Council In the News Index

Encouraging Signs in Mass. Job Market (Milford Daily News)

By David Riley/Daily News staff
Sep 20, 2010

The state's unemployment rate dipped just under 9 percent last month as Massachusetts added 2,100 jobs - a sign of continued but modest economic improvement, local business leaders said yesterday.

State unemployment in August dropped two-tenths of a percent, to 8.8 percent, according to the Executive Office of Labor and Workforce Development. That leaves Massachusetts still well below national unemployment, which stands at 9.6 percent.

Last month was the seventh in a row where Massachusetts saw job gains, adding about 64,000 since December, the labor office said. The private sector added 4,000 jobs overall, which was offset by the loss of 1,900 government positions - mainly temporary Census workers.

"While it's not any kind of dramatic upsurge, it's certainly positive," said Barry Feingold,president and CEO of the Milford Area Chamber of Commerce.

"It's seven months of slow, steady progress," said Bonnie Biocchi, president and CEO of the MetroWest Chamber of Commerce.
The Milford region and MetroWest are showing signs of slow recovery, with some employers starting to hire again, said Feingold and Biocchi.

Gov. Deval Patrick touted the figures, issuing a statement saying that while there is more work to do, Massachusetts is in the top tier nationally in job growth and "on track to emerge from this recession faster and stronger than other states."
Patrick's opponents in the November election, Republican Charlie Baker and independent Tim Cahill, both said while job gains are a good thing, they're not enough.

Baker pointed to a new study by the Pioneer Institute and Mass. High Technology Council that found that 77 percent of technology CEOs felt tax policy is the top factor in the competitiveness of the state's business climate. Forty percent said the state's economic climate is worsening, and 56 percent said Massachusetts' tax climate is less positive than in other states.
Baker vowed to cut the business tax rate to 5 percent if elected.

Cahill said the state is "crawling when we need to be sprinting." He criticized the governor for not signing a casino bill, arguing it would have created jobs.

The latest employment figures are based on a revised gain of 15,200 jobs in July, previously reported as a 13,200 gain, the labor office said.

The unemployment rate counts people who are without jobs but have looked for work in the last four weeks.

The state's largest gains last month came in the leisure and hospitality sector, which added 2,800 jobs. Professional, scientific and business services added 2,700 positions, while construction gained 1,600 jobs.

That could be good news for this region, said Maureen Dunne, a professor at the MetroWest Economic Research Center at Framingham State University.

"We have unemployed professionals, we have unemployed trade workers and less skilled workers," Dunne said. "We have unemployed across all categories."

Financial activities gained 1,100 positions, while the educational and health sector picked up another 800 positions.
Manufacturing, however, lost 1,600 jobs, while trade, transportation and utilities dropped 1,200. Information jobs were down 1,100, as were positions reported in the "other services" category.

Dunne said she hopes to not see a continued decline in manufacturing, a problem that also plagued the state before the recession.

Retailers are still being lean, with consumer spending unlikely to rebound until more people have jobs, Dunne said.
Biocchi said MetroWest employers in the business services sector have reported hiring, including administrative positions at company headquarters in the region. In some cases, firms had either downsized those jobs or gone without them, she said.

"People are starting to make investments again," she said. "I think that you will start to see the so-called recovery continue, and with that you should continue to see the jobless rate drop."

Private construction is picking up a bit, too, she said, while hotels also are reporting better business.

"We've had several times when we've spoken to folks at the Marriot Residence Inn and the Sheraton in Framingham when they've been completely booked up, and that's a good sign," she said.

The local information sector remains healthy, but the trade, transportation and utilities sector may continue to lag, Biocchi said.
Feingold reported an uptick in hiring in retail, as businesses gear up for the holidays and an end-of-year push for sales, and a handful of area manufacturers.

The chamber, he said, is gearing up for an Oct. 21 expo with the Neponset Valley and Tri-Town chambers, with about 100 businesses already signed up to exhibit.

"We've definitely seen some positive signs," Feingold said. "Now that we're post-Labor Day, the summer doldrums are over."
Biocchi said, in part, people in the business arena are still emerging from "survival mode." She said the chamber is working to ease challenges for small businesses, such as the cost of health insurance.

"That's going to make the difference in whether you hire two people or four people," she said.