Worcester’s Economy Continues to Grow in Second Quarter
Saturday, August 09, 2014
The Worcester Economic Index – which is released quarterly by Assumption College Economics Professor Thomas White, PhD – reports an increase in the annual rate of 7.9-percent, which builds on the 5.2-percent growth estimate of the first quarter of 2014.
“The local labor market continues to improve,” said Professor White. “The local unemployment rate is now around 6 percent, which is the lowest it has been since late 2008. This is due to a substantial pickup in hiring. According to the payroll survey, firms added about 3,800 workers during the second quarter, compared to only 1,100 during the first quarter of the year.”
Professor White attributes the growth to strong gains in the labor market. The next Worcester Economics Index is due out in early November.
Results
The Worcester Economics Index uses three data sets for the Worcester NECTA, all found on the Bureau of Labor Statistics website. The three variables are total nonfarm payroll employment, total household employment, and the unemployment rate.
The report says that all three of these data sets rose in the second quarter of 2014, which is the reasoning for the 7.9-percent increase. Both payroll and household employment in Worcester saw substantial increases. Additionally the unemployment rate dropped, a hopeful sign of things to come for Worcester in the future.
Continued Growth
According to the report, the Worcester economy is expected to grow at a relatively strong level over the next three to six months.
The city has seen more help-wanted advertisements posted online, a number of new residential building permits, and an increased number of business incorporations. Additionally, the number of statewide initial unemployment claims has dropped. All of these factors are positive signs for the future economic performance of Worcester.
“Of the national and local indicators I follow for this report, all point to continued growth of the WEI in the coming months,” said Professor White.
Related Slideshow: Bureau of Economic Analysis: Real Personal Income Data for New England Municipalities, 2008-2012
The U.S. Department of Commerce released "real personal income" data for both all the states, as well as metropolitan area, from 2008 to 2012.
Below are the New England metro areas ranked from least personal income growth from 2011 to 2012 -- to the most, as well as prior years.
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