Record Employment and Payroll for MetroWest in 2008

Submitted by Anonymous on Thu, 2010-03-04 16:49

 

In 2008, total employment in the MetroWest Cohesive Commercial Statistical Area (CCSA) reached a record 110,100, up 2.3% from 2007. Payroll totaled a record-setting $7.0 billion, up 3.3% from 2007. The average wage for MetroWest experienced a small gain, climbing from $63,000 in 2007 to $63,600 in 2008. However, total establishments dropped in 2008, declining by 20 establishments from 2007.   
   
        The previous cyclical peak in MetroWest employment, 106,000 jobs, occurred in 2001. Examination of the change in employment and payroll by town between 2001 and 2008 reveals major changes.
 
        The MetroWest Economic Research Center at Framingham State College (MERC) calculated the net change in employment from 2001 to 2008 for each of the nine communities in MetroWest. The greatest increase in employment occurred in Southborough, up 1,600 jobs, or 27%. The majority of these jobs are in the Manufacturing and Public supersectors. Sudbury experienced the second highest employment growth, adding 1,000 new jobs, or 14%. The addition of these jobs was spread uniformly across all supersectors. Natick added 950 jobs, or 4%, largely in the Information, Education and Health Services, and Leisure and Hospitality supersectors. However, not all towns experienced such growth. Framingham, for example, lost 120 jobs, or less than 1% since 2001. Wayland lost almost 900 jobs, or 22%, since 2001. The majority of the Wayland job loss occurred in the Manufacturing and Information supersectors. (Graph 1)
 
        However, the change in payroll tells a completely different story. Between 2001 and 2008, the payroll in MetroWest increased from $5.4 billion to $7.0 billion, an increase of $1.6 billion or 29%. Framingham alone contributed almost half of the total gain in regional payroll, 49% or $770 million, despite losing 120 jobs since 2001. Natick added the second largest amount to the MetroWest 2001–2008 payroll increase: $276 million or 18%, followed by Southborough with $180 million, 12% of this gain. These three communities contributed 76% of the growth in payroll. (Graph 2, page 1)
 
        As the saying goes, the devil is in the details. Framingham experienced a large shift in employment from the Manufacturing and Trade, Transportation and Utilities supersectors to the Professional and Business and Education and Healthcare supersectors from 2001-2008. Over 1,600 Retail Trade jobs and over 1,000 manufacturing jobs were lost while Professional and Business Services and Education and Health Care gained over 2,400 and 1,300 jobs, respectively. This suggests Framingham is moving away from manufacturing and retail trade and more towards management of companies and health services. Over 90% of the gain in the Framingham PBS supersector occurred in the Management of Companies and Enterprises sector. 
 
        In Wayland, unlike Framingham, jobs did not shift from one supersector to another. Wayland simply lost jobs. While all but two other supersectors lost jobs, the largest drop in any supersector occurred in Manufacturing, down almost 600 jobs since 2001, followed by Information, with 200 jobs lost since 2001.
 
        MetroWest also experienced growth in the number of establishments from 2001-2008. Every community except Framingham grew in terms of establishments. Southborough gained 50 establishments, or 15%, the largest gain of all nine communities. Natick also grew by 40 establishments, or 3%. Conversely, Framingham lost 50 establishments, or 2% from 2001-2008; these establishments were largely located in the Professional and Business Services supersector. (Graph 3)
 
        For more information, please contact MERC: (508) 626-4033; merc@framingham.edu; or www.merc-online.com.
Jon Murphy, MERC Intern III
Framingham State College
 

 

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