Pioneer Report Underscores Wide Disparities in Economic Performance between Industry Sectors in Massachusetts

Share on Facebook
Share on Twitter
Share on
LinkedIn
+

BOSTON – Service-based industries have significantly outperformed manufacturing and other traditional blue-collar economic sectors in Massachusetts since 2008, according to a new report from Pioneer Institute that draws on data from the MassEconomix web tool.

In “Broad Industry Sector Trends in Massachusetts, 1998-2018,” two decades of data show fluctuating employment changes across the state, as well as changes in firm size and the types of firms disproportionately headquartered in the Commonwealth.

Health Care tops the list of those industries that have added the most jobs in Massachusetts from 2008-2018, with “Other Services” (everything from funeral home directors to valet parking attendants) and Accommodation & Food also comfortably outpacing population growth. It’s unclear how COVID-19 will affect these trends in the long-term.

The report is the second in a series that presents employment and business establishment trends in the Commonwealth on both the state and municipal levels.

“While Health Care easily leads in job gains, Educational Services remains the most heavily concentrated industry in Massachusetts relative to the national average,” said Andrew Mikula, who co-authored the report with Rebekah Paxton. “The Education sector also has plenty of very large individual employers, notably Boston University.”

Despite nearly a decade of economic growth through 2018, several industries were still shedding jobs in Massachusetts. Manufacturing, Wholesale Trade, and Public Administration top the list of most jobs lost by sector.

Agriculture and Mining & Extraction have enjoyed some of the strongest rates of employment growth in the state since the Great Recession. Still, industry sectors that work to extract raw materials in Massachusetts constitute a minuscule fraction of the state’s overall workforce.

All of the reports in Pioneer’s MassEconomix series use the same Your-economy Time Series data to develop aggregated numbers for statewide growth. This data is recorded by Infogroup and compiled by the Business Dynamics Research Consortium (BDRC) at the University of Wisconsin System Institute for Business and Entrepreneurship in Madison, Wisconsin.

Following this report, Pioneer will use these data to release regular publications that document trends in individual cities and towns, and create “snapshots” of particular industries.

About the Authors

Andrew Mikula is a Research Assistant. Mr. Mikula was pre­viously a Lovett & Ruth Peters Economic Opportunity Fellow at Pioneer Institute and studied economics at Bates College.

Rebekah Paxton is a Research Analyst at Pioneer Institute. She earned an M.A. in Political Science and a B.A. in Political Science and Eco­nomics, from Boston University, where she graduated summa cum laude.

About Pioneer

Mission

Pioneer Institute develops and communicates dynamic ideas that advance prosperity and a vibrant civic life in Massa­chusetts and beyond.

Vision

Success for Pioneer is when the citizens of our state and nation prosper and our society thrives because we enjoy world-class options in education, healthcare, transportation, and economic opportunity, and when our government is limited, accountable and transparent.

Values

Pioneer believes that America is at its best when our citi­zenry is well-educated, committed to liberty, personal respon­sibility, and free enterprise, and both willing and able to test their beliefs based on facts and the free exchange of ideas.

Get Updates on Our Economic Opportunity Research

Related Posts

Pioneer Report Highlights Employment Growth in Lowell, Massachusetts

In 2018, employment in Lowell, Massachusetts finally surpassed its pre-Great Recession peak, according to a new report from Pioneer Institute that draws data from the MassEconomix web tool. Before COVID-19, job growth in the city was driven largely by a resurgence in manufacturing and a continued high concentration of healthcare firms.

Ballot Question 1: Risks & Regulations Regarding Right to Repair

/
Join host Joe Selvaggi and security technologist Prof. Bruce Schneier as they discuss risks associated with car telematics as well as how best to ensure public safety in the future of the internet of everything.

Small Business Life Support: Policy Relief for Firms Sickened by COVID?

/
Host Joe Selvaggi talks with Pioneer Institute’s Andrew Mikula and Retailers Association of Massachusetts' Jon Hurst about the state of small business in Massachusetts six months into the pandemic.

Pioneer Report Underscores Wide Disparities in Economic Performance between Industry Sectors in Massachusetts

Service-based industries have significantly outperformed manufacturing and other traditional blue-collar economic sectors in Massachusetts since 2008, according to a new report from Pioneer Institute that draws on data from the MassEconomix web tool. In “Broad Industry Sector Trends in Massachusetts, 1998-2018,” two decades of data show fluctuating employment changes across the state, as well as changes in firm size and the types of firms disproportionately headquartered in the Commonwealth.

Study: Economic Recovery from COVID Will Require Short-Term Relief, Long-Term Reforms

As the initial economic recovery from the COVID-19 pandemic has slowed, a new study from Pioneer Institute finds that governments must continue to provide short-term relief to stabilize small businesses as they simultaneously consider longer-term reforms to hasten and bolster recovery – all while facing a need to shore up public sector revenues.

Where Did the Largest PPP Loans Go? Assessing the distribution of loans by industry

/
The coronavirus has wreaked havoc on all parts of the economy,…

Non-Profits Facing COVID-19: Charles River's Esplanade Association on Why It's No Walk in the Park

/
Join host Joe Selvaggi as he talks with Esplanade Association’s executive director Michael Nichols about how he and other non-profits adapt to a surge in demand for services while coping with a collapse in fundraising opportunities.

New Study Offers Guide to Recovery in MA Retail, Accommodation and Tourism, and Restaurant Sectors

A new guide to economic recovery in the retail and hospitality industries published by Pioneer Institute calls for the federal and state governments to consider consumption-based refundable tax credits for brick and mortar businesses; the federal government to conduct a detailed study of the costs and benefits of suspending employer-side payroll taxes; businesses to pay special attention to developing and marketing their cleanliness, hygiene and contactless procedures; and third-party customer review sites to include comments about the implementation of COVID safety measures to provide options and reassurance to safety-minded consumers

PPP Loan Tracker

/
To advance transparency regarding public funds, Pioneer Institute developed this Paycheck Protection Plan Loan Tracker. This web tool allows you to track PPP loans by recipient, lender, location, industry, and loan range. According to this data, from the Small Business Administration, 18,177 Massachusetts small businesses received PPP loans, which the companies claim retained 738,613 jobs.

Pioneer Institute Study Calls for Streamlining State Sales Tax Revenue Collection

At a time when state tax revenues are plummeting, a plan to modernize sales tax collection could get money into state coffers more quickly, according to a new policy brief published by Pioneer Institute.

Even for the most remote part of Massachusetts (Franklin County), it’s far from business as usual

/
The Connecticut River valley is home to some of the most productive…

Study: Safely Reopening Office Buildings Will Require Planning, Innovation

/
Safely bringing employees back into workplaces presents a significant challenge for employers located in office buildings, particularly when it comes to elevator operations and building entry and exit.  To address the challenge, managers must develop plans to control the flow of workers, according to a new study published by Pioneer Institute.

38.8 percent of the Massachusetts workforce and 28.3 percent of the U.S. workforce have filed unemployment claims over the past ten weeks.

/
Data released today by the U.S. Department of Labor shows that 38.8 percent of the Massachusetts workforce and 28.3 percent of the U.S. workforce have filed unemployment claims since the COVID-19 unemployment surge began ten weeks ago.

Once anchored by higher education, Hampshire County, MA finds itself out of work after a cancelled semester

/
The 38,000 college and university students at the Five College…