THE MASSACHUSETTS ECONOMY CONTINUED TO OUTPACE THE NATION
-- ACCORDING TO THE LATEST FROM A UMASS DONAHUE INSTITUTE REPORT
AND FEDERAL RESERVE BANK IN BOSTON.
MORE JOBS WERE ADDED IN MASSACHUSETTS IN THE FIRST THREE
MONTHS OF THIS YEAR THAN IN THE ENTIRETY OF LAST YEAR.
BUT WHAT DOES THAT MEAN FOR THIS REGION?
I SPOKE WITH RICK SULLIVAN, THE PRESIDENT & CEO OF
THE WESTERN MASSACHUSETTS ECONOMIC DEVELOPMENT COUNCIL, TO
FIND OUT.
>> THE TREND IS STILL ALL THE SAME BUT CERTAINLY THE
UNEMPLOYMENT NUMBER IS HIGHER OUT OF AND SOME OF THE OTHER
NUMBERS IN TERMS OF WAGE INFLATION FOR WORKERS IS LESS
THAN WHAT YOU'LL SEE IN THE OTHER PARTS OF THE STATE.
TO PUT IT IN A DIFFERENT CONTEXT WHICH I THINK IT'S AROUND 3%.
SOME OF THE LATEST NUMBERS ARE ACTUALLY AROUND 2.9.
I MEAN THAT TAKES YOU ALL THE WAY PACK TO 2000 DURING THE DOT
COM BUST.
THIS IS A REALLY LOW UNEMPLOYMENT NUMBER EVEN IN THIS
REGION BUT CERTAINLY IN WESTERN MASSACHUSETTS, THE NUMBER -- THE
UNEMPLOYMENT NUMBERS ARE A LITTLE BIT HIGHER.
>> AND TO QUOTE THE REPORT, IT SAYS THE STATE'S UNEMPLOYMENT
RATE STOOD AT 3% WHICH YOU JUST SAID IN MARCH AND IS NEAR THE
ALL-TIME LOW OF 2.6% DURING THAT DOT COM BUBBLE WHICH WHAT YOU'RE
REFERRING TO.
THERE WAS A MASSLIVE HEADLINE MASSACHUSETTS GAINED 11,000
WORKERS THE HIGHEST OF ANY STATE IN 2018 SO WHAT DOES THAT MEAN
FOR US.
>> I THINK THE STATE HAS DONE A REALLY GOOD JOB OVER REALLY
PROBABLY THE LAST 10 OF 12 YEARS OF INVESTING IN SECTORS THAT
HAVE BEEN REALLY SMART SO WHEN YOU LOOK AT BIOTECH AND PHARMA
AND CLEAN ENERGY AND I.T., YOU KNOW, THOSE ARE JOBS THAT ARE
ALL GROWING SO REALLY MASSACHUSETTS HAS STARTED TO
PAYCHECK THE CENTER OF ALL OF THAT ACTIVITY ON THE TRICK HERE
IN WESTERN MASSACHUSETTS BECAUSE A LOT OF THAT IS ALREADY
CENTERED IN BOSTON, CAMBRIDGE AND CENTREVILLE IS TO SHOW WE
HAVE A PART TO PLAY IN THOSE SECTORS SO WHETHER IT'S THE
MANUFACTURING COMPONENT OF THAT WHICH IS REALLY A CENTER OF
EXCELLENCE FOR US HERE IN WESTERN MASSACHUSETTS OR WHETHER
IT'S THINGS LIKE CYBERSECURITY WHERE YOU HAVE A LOT OF OUR
COLLEGES AND UNIVERSITIES GETTING INTO -- INTO THAT PART
OF THOSE SECTORS WHICH ARE RELATIVELY NEW.
THOSE ARE PLACES WHERE WE CAN GET TO THE BUSINESS TABLE IN
BOSTON AND BRING THOSE JOBS BACK HERE TO WESTERN MASSACHUSETTS.
>> WHERE DOES MARIJUANA FIT INTO THIS?
>> WELL, I MEAN, EACH COMMUNITY HAS CERTAINLY HANDLED THAT A
LITTLE BIT DIFFERENTLY.
I THINK THE MAYOR IN HOLYOKE HAS PROBABLY BEEN OUT AND FRONT IN
FRONT OF MOST OF THE DIFFERENT COMMUNITIES IN TERMS OF
CULTIVATION AND LOOKING AT HIS MILL BUILDINGS WHEN YOU GET INTO
AQUACULTURE AND SOME OF THE OTHER TECHNIQUES THAT ARE OUT
THERE.
HE HAS DEFINITELY BEEN THE LEADER HERE IN WESTERN
MASSACHUSETTS.
SO IT'S AN OPPORTUNITY.
THERE CERTAINLY ARE A LOT OF LOGISTICS THAT OUGHT TO BE
WORKED AT SUCH AS FEDERALLY, YOU KNOW, THE BANKS ARE NOT REALLY
ABLE TO COME TO THE TABLE AND BE PARTNERS BECAUSE IT ISN'T LEGAL
AT THE FEDERAL LEVEL SO THEY'RE VERY SKITTISH AND RIGHTLY SO IN
TERMS OF THE REGULATIONS THERE SO IT'S A DANCE THAT'S GOING TO,
YOU KNOW, CONTINUE HERE FOR A WHILE TILL THEY KIND OF FIGURE
THAT OUT BUT EACH COMMUNITY HAS HANDLED THAT A LITTLE BIT
DIFFERENTLY BUT IT'S AN OPPORTUNITY BECAUSE OF THE
REGULATIONS IN MASSACHUSETTS IS VERY STRICT IN TERMS OF
CULTIVATION WHERE IT COULD HAPPEN AND HOW IT COULD HAPPEN
AND ALL THE RESUMING ARULES AND REGULATIONS.
>> AS WE'VE SEEN MAYBE SOME OF THE RULES AND REGULATIONS
SPRINGFIELD, FOR INSTANCE, IS LOOKING AT A NUMBER OF POTENTIAL
APPLICANTS IN THE CITY AS WE COME TO BEAR AND MORE
COMMUNITIES ARE FIGURING THIS OUT, DO YOU THINK THAT, YOU
KNOW, 5 YEARS WE'RE USING OUR CRYSTAL BALL HERE -- 5 YEARS
FROM NOW WE'LL SEE MORE JOBS IN WESTERN MASSACHUSETTS BECAUSE OF
THAT ONE INDUSTRY OR IS IT TOUGH TO SAY?
>> I THINK THERE IS A POSSIBILITY.
I MEAN, I DON'T THINK IT'S GOING TO BE A PANACEA THAT IT'S GOING
TO ULTIMATELY DRAMATICALLY OVERNIGHT CHANGE THE ECONOMY IN
WESTERN MASSACHUSETTS BUT CERTAINLY, YOU KNOW, AGRICULTURE
IN GENERAL IS SOMETHING PARTICULARLY WHEN YOU LOOK AT
FRANKLIN COUNTY AND PARTS OF HAMPSHIRE COUNTY AGRICULTURE IS
STILL A PART OF OUR ECONOMY AND, YOU KNOW, WHILE MARIJUANA KIND
OF STANDS BY ITSELF, IT'S STILL ULTIMATELY CULTIVATION AND, YOU
KNOW, IS GOING TO BE PART OF OUR ECONOMY MOVING FORWARD AND IT
MAY BE A LARGER PART OF WHAT IT WAS BEFORE.
SO USE OF THAT BE THE ONLY -- I WOULDN'T HAVE THAT BE ANYTHING
TO FOCUS ON AND WE GOT BIGGER OPPORTUNITIES LIKE MANUFACTURING
AND I.T.
PLAYING A BIGGER ROLE WITH THOSE TYPES OF JOBS AND
THAT'S WHERE OUR COLLEGES AND UNIVERSITIES ARE FOCUSED AT
RIGHT NOW.
>> I WAS THINKING ABOUT POPULATION AS IT RELATES TO
PEOPLE YOU NEED TO EMPLOY.
A PRELIMINARY SENSESUS DATA CAME OUT.
82% INCREASE IN TERMS OF POPULATION BUT WHEN YOU LOOK AT
THE WESTERN MASSACHUSETTS DATA, DECREASES IN POPULATION IN
BERKSHIRE COUNTY AND FRANKLIN COUNTY IN PARTICULAR SO YOU HAVE
FEWER PEOPLE TO EMPLOY IN THOSE AREAS SO IS THAT SKEWING JOB
DATA?
>> YOU ALSO HAVE THE SITUATION WHERE HAMDEN COUNTY, YOU KNOW,
REALLY THE GROWTH DOES SHOW AND IT DOES SHOW SOME GROWTH
CERTAINLY NOT AS BIG AS THE STATE BUT CERTAINLY AS
IMMIGRATION AND NEW RESIDENTS, YOU KNOW, MOVING FROM OTHER
COUNTRIES.
>> IT WAS ABOUT 3.2% GROWTH THERE.
>> YEAH, AND MOST OF THAT IS THROUGH IMMIGRATION SO WHEN YOU
PUT THAT ALL TOGETHER THE LABOR POOL ITSELF AND CERTAINLY
SMALLER -- IS CERTAINLY SMALLER SUMMARILY AND YOU BRING UP
WORKFORCE TRAINING WHICH I THINK IS ONE OF THE BIGGEST
OPPORTUNITIES HERE IN WESTERN MASSACHUSETTS MOVING FORWARD ON
EMPLOYMENT IS OUR GREAT COLLEGES AND UNIVERSITIES AND WE ARE VERY
FORTUNATE HERE TO HAVE A SECTOR THAT IS VERY STRONG AND, YOU
KNOW, THE BUSINESSES NEED THE WORKFORCE.
YOU HEAR IT TALK ALL THE TIME FINDING TALENT, RETAINING TALENT
AND THAT TALENT IS SITTING IN THE CLASSROOMS OF WESTERN
MASSACHUSETTS AND WE NEED TO PLAY THAT UP AND AT THE SAME
TIME THE BUSINESSES ARE ALSO LOOKING FOR A CONNECTION TO THE
RESEARCH AND DEVELOPMENT THAT IS HAPPENING AT ALL OF OUR COLLEGES
AND UNIVERSITIES AND SO THAT BECOMES IMPORTANT AND QUITE
HONESTLY THE COLLEGES AND UNIVERSITIES ARE IN A
COMPETITIVE ENVIRONMENT.
THEY ARE SEEING FLAT, YOU KNOW, THE AGE OF THE STUDENTS IN TERMS
OF THAT POPULATION IS RELATIVELY FLAT AND SO THERE'S COMPETITION
FOR THOSE STUDENTS TO COME HERE SO REALLY WORKFORCE IN THE
COLLEGES ALL REALLY LINE UP AND ECONOMIC GROWTH ALIGNS UP PAW OF
ECONOMIC GROWTH, AND THAT IS THE KEY AND THAT IS A REAL STRONG
SUIT WE NEED TO PLAY OFF THAN MUCH MORE THAN WE MAY HAVE.
>>, I THINK, AS YOU POINT OUT WE DO HAVE A LOT OF YOUNG PEOPLE
WHEN YOU LOOK AT COLLEGES AND UNIVERSITIES, HOWEVER,
HISTORICALLY RESTORING AND RETAINING THOSE ECONOMIES IS A
REALLY BIG CHALLENGE.
ARE YOU SEEING ANYTHING BEING DONE DIFFERENTLY WHERE YOU SEE A
GLIM OF HOPE IN RETAINING THOSE FOLKS?
>> YEAH, I THINK THERE ARE WHEN THE STUDENTS ARE MAKING THE
DECISION WHERE AM I GOING TO GO TO SCHOOL?
THEY'RE LIKE WHAT IS THE COMMUNITY IS LIKE.
WE HAVE A GOOD STORY TO TELL.
WE HAVE OUR URBAN CENTERS WHEN YOU START TO SEE WHEN YOU LOOK
AT SPRINGFIELD YOU HAVE NEW RESTAURANTS AND CLUBS OPENING UP
RIGHT ON MAIN STREET SO IT'S STARTING TO BE A LITTLE MORE
VIBRANT AND YOU HAVE MORE COMMUNITIES LOOKING AT HOUSING
BECAUSE THE STUDENTS AND THE POPULATION.
BOTH THE YOUNGER POPULATION BUT ALSO, YOU KNOW, SOME OF THE
OLDER POPULATION THAT ARE LIVING IN THE COMMUNITIES AND THEY WANT
TO LIVE DOWNTOWN SO THEY CAN WALK TO THEIR WORK AND
TELECOMMUTE AND CULTURAL OPPORTUNITIES THEY CERTAINLY
DON'T WANT TO HAVE A CAR AND YOU'RE STARTING TO SEE THE
COMMUNITIES AND THE CITIES IN WESTERN MASSACHUSETTS PLAY TO
THAT AND LOOK TO MAKE STRATEGIC INVESTMENTS ON THAT, AND THE
STUDENTS ALSO LOOK TO SAY WHAT IS THE JOB -- NOT JUST THE FIRST
JOB, WHAT IS THE CAREER PATHWAY THAT I'M GOING TO TAKE?
SO WE NEED TO BE ABLE TO CREATE THOSE FIRST JOBS BUT ALSO THE
SECOND AND THIRD JOBS 'CAUSE THEY MOVE THROUGH THOSE RANKS
PRETTY QUICKLY.
>> OVERALL, THE REPORT A LOT OF GOOD NEWS.
SOME SORT OF BAD NEWS IN THAT IF YOU LOOK SALES TAX RECEIPTS FOR
MOTOR VEHICLES AND FOR SALES IN GENERAL WITH THAT DECLINE 3.9%
SO IF THEY HAVE JOBS, THEY'RE EARNING MONEY AND THEY AREN'T
SPENDING IT IS THAT A SIGNAL THAT PEOPLE ARE CONCERNED
THERE'S ANOTHER RECESSION COMING?
>> IT'S ALSO LOOKING WE'RE LOOKING TO TAX THE SALES TAX IN
AN ARCHAIC WAY.
YOU GO TO THE STORE AND BUY SOMETHING AND PAY A LOCAL SALES
TAX.
THE AVERAGE PERSON AND I'LL SPEAK TO MYSELF WE SEE THE
LITTLE SMILEY BOX GET DELIVERED BUT THAT DOESN'T ALWAYS COME
WITH SALES TAX.
>> AMAZON.
>> WELL, I WASN'T GOING TO SAY ANY NAMES.
ABSOLUTELY SO IT'S CHANGING HOW PEOPLE SHOP AND HOW THEY BUY AND
OUR TAXING SYSTEM IS BASED OFF, AGAIN, AN OLDER MODEL.
THAT SALES TAX NUMBER HAS EBBED AND FLOWED AND REALLY HAS NOT
NECESSARILY BEEN CONSISTENT WITH A VIBRANT ECONOMY.
THAT NUMBER HAS STILL LAYERED SO IT'S NOT -- LAGGED.
THEY'RE BUYING THINGS DIFFERENTLY THAN THEY HAVE WHICH
MAY BE BYPASSING THE TAX SYSTEM WHICH I THINK IS A LARGER
DISCUSSION, A POLICY DISCUSSION, YOU KNOW, THE POLITICAL LEADERS
ARE GOING TO HAVE TO HAVE DOWN THE ROAD SO, YOU KNOW, THAT'S
ONE THING AND IN TERMS OF CARS, AGAIN, I MEAN, A LOT OF -- A LOT
OF THE MILLENNIALS ARE REALLY NOT LOOKING TO NECESSARILY HAVE
A CAR.
THEY WOULD LIKE TO, YOU KNOW, BIKE AND WALK AND TAKE PUBLIC
TRANSPORTATION OR UBER OR LYFT OR WHATEVER IS OUT THERE.
IT'S A CHANGING HABIT AND WE NEED TO CHANGE WITH THEM.