1. Page 1 Recent Economic Trends in Massachusetts: Which are critical industries? Navjeet Singh Vice President, Research and Evaluation 617-727-8158 Nsingh@commcorp.org Jonathan Latner Research and Evaluation Analyst 617-727-8158 jlatner@commcorp.org

2. Page 2 Massachusetts Employment Trends Source: Bureau of Labor Statistics CES Data, Seasonally Adjusted Data Note: Recession Dates According to NBER Employment is recovering from recession, but has not equaled its peak of Feb 01

3. Page 3 Do We Have Enough Workers Now? Many people are seeking work In July 06, 147,800 fewer employed than at peak Feb 01 From 2000 to 2005: 36,000 fewer people 70,000 fewer people in the labor force 69,000 more unemployed 32,000 more working part- time 11,000 more marginally attached –stopped looking for jobs recently: 5,000 more discouraged 6,000 more stopped due to family or transportation reasons From 2000 to 2004 47,500 more contractors or non-employer businesses in 2004 than in 2000 Note: Based on 12 month averages from Current Population Survey (CPS) Source: BLS (CPS) & Census (Non-employer) Source: Census Population Estimates

4. Page 4 Massachusetts Employment 2005 Source: Bureau of Labor Statistics QCEW/ES-202, 2005 Annualized Data Healthcare is the largest Industry

5. Page 5 Which of the industries share of employment in Massachusetts is high Source: BLS QCEW, 2005 Annualized Data for MA & US Indicates relative strength: Mgmt. Of Companies, Information, Prof. Tech. Svcs., Finance, & Healthcare

6. Page 6 Employment Trends (2001-2005): Since Peak Employment Source: Bureau of Labor Statistics ES-202, 2001, 2005 Annualized Data Very few industries growing: Healthcare, Education, Hotels/ Food Services, and Other Services

7. Page 7 Employment Trends (2004 – 2005): More Widespread Growth Source: Bureau of Labor Statistics ES-202, 2004, 2005 Annualized Data

8. Page 8 The economy is turning around! Employment Trends (2001 – 2005) Employment Trends (2004 – 2005) Source: Bureau of Labor Statistics ES-202, 2001, 2004, 2005 Annualized Data

9. Page 9 Massachusetts Job Vacancy Rate by Industry Q4, 2005 Source: MA DWD Job Vacancy Survey, Q4, 2005 Highest vacancy rates: Professional/Tech Services, Retail (only in 4Q), Healthcare, Real Estate

10. Page 10 Selecting critical industries What criteria to use? What relative importance or weight should be given to different criteria? When we use selected criteria what industries rise to the top?

11. Page 11 What criteria to use? What criteria can we use to select critical industries? Some options, rank your top five choices: –in which Massachusetts is strong (strong meaning?) –In which employment is high (how high?) –in which there has been long-term or short-term growth –which pay well –which have entry level jobs with growth opportunities –have a lot of vacancies –are projected to grow

12. Page 12 Details on Professional & Technical Services Industries & Occupations

13. Page 13 Professional & Technical Services Source: MA DWD CES Data, Seasonally Unadjusted Data Note: Recession Dates According to NBER 1.Employment Peaked in December, 2000 2.Employment Reached bottom in March, 2003 (12% Loss) 3.One of the few industries projected to grow in the next 5 years

14. Page 14 What Defines Professional & Technical Services? 2002 North American Industry Classification System (NAICS) Source: Census Bureau

15. Page 15 What is included in Professional & Technical Services 2005 Employment Source: Bureau of Labor Statistics ES-202, 2005 Annualized Data

16. Page 16 Professional & Technical Services Medium & Short Term Employment Trends Employment Trends (2001 – 2005) Employment Trends (2004 – 2005) Source: Bureau of Labor Statistics ES-202, 2001, 2004, 2005 Annualized Data

17. Page 17 What are the Major Occupations in Professional & Technical Services? Most of the occupations that work in this industry are highly educated, but there are those that do not require a Bachelors Degree Source: MA DWD Occupational-Industry Crosswalk

18. Page 18 What are the Top 5 Occupations in Professional & Technical Services? SOC-CODESOC – Description% of the Industry 23-1011Lawyers8% 15-1051Computer Systems Analysts5% 13-1111Management Analysts4% 43-6012Legal Secretaries4% 13-2011Accountants and Auditors4% Source: MA DWD Occupational-Industry Crosswalk