slides: Central Massachusetts’ Most Unemployed Cities and Towns

Thursday, November 21, 2013

Zeke Wright, GoLocalWorcester Contibutor

The unemployment rate in Central Massachusetts ranges dramatically with some towns a 40% higher and some more than 2 full percentage points lower than the state's average.

The Worcester job market was the state's only area to show month-over-month job creation in the most recently available unemployment numbers. According to a recent analysis by the University of Massachusetts Donahue Institute, economic growth in the state outpaced the national trend in the third quarter of 2013.

Sharyn T. Williams with the Worcester Regional Chamber of Commerce attributed growth in central Massachusetts to a diverse economy. “We have industry, we have healthcare, we have education.”

For Unemployment Statistics From Each Central Mass City and Town, See The Slides Below

Researchers at that institute gave a preliminary growth rate in real gross domestic product of 3.5 percent — above the national rate of 2.8 percent. Alan Clayton-Matthews, an associate professor of Economics and Public Policy at Northeastern University, pointed out in a release that the estimate was based on incomplete data because of missing employment numbers for the month of September.

Published in the MassBenchmarks journal, the report's authors estimated “modest” continued job growth in the month of September by using Massachusetts' historical average relationship with national employment figures, which improved slightly.

Signs of improvement in job growth

Using the latest available information, the local region added 3,900 jobs between August and one year prior.

A report this year by the Worcester Regional Research Bureau found education and health services, manufacturing, and “other services” (including nonprofit work and repair, personal, and household services) made up a larger proportion of local jobs compared to the national average.

Education and health services was the largest job creator across the state in August.

Jobless rate still above state average

Despite job gains in the area, many remain out of work with the jobless rate in Massachusetts' second largest population center standing at a seasonally unadjusted 8.9 percent — well above the state unemployment average of 6.8 percent.

In the greater Worcester metropolitan area, where unemployment sat at 7.6 percent as a whole, the Massachusetts Office of Labor and Workforce Development tallied 800 jobs added in the month of August.

With more recent unemployment figures delayed by last month's federal government shutdown, updated numbers will be released this week from the U.S. Department of Labor's Bureau of Labor Statistics.

Williams said the chamber was cautiously optimistic ahead of the release of those figures. “We are seeing incremental progress for some businesses — they're certainly being cautious, but they are moving forward.”

Jim Donoghue, president of the North Worcester Business Association, pointed to recent activity in his part of the city but described the overall economy as “flat”.

“We've been through a lot” recently, he said, citing external factors at the federal level including sequestration and the shutdown.

“If the government can just stay normal, things will improve,” Donoghue said.

A hub for education

Worcester officials tout the city as an economic engine for Central Massachusetts. Home to 10 colleges and universities, 2012 saw expansions at the Massachusetts College of Pharmacy and Health Sciences, Worcester Polytechnic Institute, and Worcester State University.

This year, Quinsigamond Community College announced an expansion downtown with a new health care and workforce development training center expected to open in early 2014.

But residential and business property owners in Worcester are seeing their water and sewer rates rise after a city council vote earlier this year.

Williams, the chamber staff member, said some businesses had expressed “definite reservations” about hiring and spending on long-term investments.

“It's fragile,” she said.

Minimum wage increases are hurting, not helping

Christopher Pinto of the Worcester Republican City Committee said unemployment rates would be hampered by efforts to raise the state's minimum hourly wage. The current measure, which would raise the minimum wage from $8 to $11 by 2016 and tie future increases to inflation, passed Tuesday in the state Senate and has the support of Gov. Deval Patrick.

Pinto called the move “misguided.”

“Here is the thing about unemployment: Raising the minimum wage creates unemployment,” he said.

“Raising the minimum wage will cause the cost of goods to rise and this hurts everyone's buying power, most especially the poor and the working poor who the legislation is intended to help,” Pinto continued.

Pinto also levied charges against the Affordable Care Act and Massachusetts Health Reform Act, which he said placed additional costs on business and made it more expensive for them to hire.

An increasing labor force

Massachusetts added 7,500 jobs in August, but the adjusted unemployment rate remained unchanged because of an increase in the total labor force. New jobs came in education and health services, leisure and hospitality, manufacturing, construction, information, and financial activities — in that order.

Unemployment figures for the months of September and October — in addition to revised numbers for August — will be released Friday according to Lauren Jones of the Office of Labor and Workforce Development.

Updated unemployment rates by local area will be available next week. Jones said some of the data been delayed by last month's government shutdown.

The unemployment rate in Massachusetts hit a recessionary high of 8.7 percent (adjusted to account for seasonal fluctuations) in late 2009. But that rate was down to 6.4 percent in March and April of this year.

Related Slideshow: Central MA Unemployment Rates #72 - #1

Here are the unemployment statistics for each town in Central Mass, ranked from least to most-

slides: Central Massachusetts’ Most Unemployed Cities and Towns

For Unemployment Statistics From Each Central Mass City and Town, See The Slides Below

Signs of improvement in job growth

Jobless rate still above state average

A hub for education

Minimum wage increases are hurting, not helping

An increasing labor force

Related Slideshow: Central MA Unemployment Rates #72 - #1

#72

#71

#69 (Tie)

#69 (Tie)

#67 (Tie)

#67 (Tie)

#66

#65

#62 (Tie)

#62 (Tie)

#62 (Tie)

#61

#58 (Tie)

#58 (Tie)

#58 (Tie)

#56 (Tie)

#56 (Tie)

#53 (Tie)

#53 (Tie)

#53 (Tie)

#51 (Tie)

#51 (Tie)

#48 (Tie)

#48 (Tie)

#48 (Tie)

#46 (Tie)

#46 (Tie)

#45

#42 (Tie)

#42 (Tie)

#42 (Tie)

#40 (Tie)

#40 (Tie)

#38 (Tie)

#38 (Tie)

#33 (Tie)

#33 (Tie)

#33 (Tie)

#33 (Tie)

#33 (Tie)

#32

#31

#30

#27 (Tie)

#27 (Tie)

#27 (Tie)

#26

#24 (Tie)

#24 (Tie)

#21 (Tie)

#21 (Tie)

#21 (Tie)

#19 (Tie)

#19 (Tie)

#18

#17

#15 (Tie)

#15 (Tie)

#13 (Tie)

#13 (Tie)

#11 (Tie)

#11 (Tie)

#9 (Tie)

#9 (Tie)

#7 (Tie)

#7 (Tie)

#6

#5

#3 (Tie)

#3 (Tie)

#2

#1