The Massachusetts economy created jobs for the eighth consecutive month in April, helping to push the jobless rate to its lowest level in more than three years and adding momentum to the state's recovery.
Bay State employers boosted payrolls by 4,700 jobs last month, led by gains in key sectors including professional and business services, tourism-related industries, and construction, which hit its highest employment level since the building boom of the late 1980s. The state unemployment rate dipped to 4.7 percent from 4.9 percent in March, the state Division of Unemployment Assistance reported yesterday.
''This is a convincing sign that the recovery has taken strong hold in the Massachusetts economy," said David Pace, regional economist at Global Insight, a Waltham forecasting firm.
April's net job gain showed the recovery is not only taking hold, but spreading, analysts said. The surge in business and professional service jobs indicates that corporate spending, an important driver of the state's economy, is picking up, while strong gains in the leisure and hospitality sector, which includes hotels, restaurants, and entertainment, mean consumer spending remains solid.
The housing market also stays strong, helping to boost construction employment by 2,000 jobs over the past two months. Building permits for new housing rose more than 20 percent in the first three months of the year, compared to the same period in 2004, according to the Commerce Department.
Accelerating the production of new homes is a key part of Governor Mitt Romney's strategy to moderate the state's soaring housing costs, which rank among the nation's highest. Administration officials said yesterday the governor's efforts, including tweaking a state zoning law requiring communities to create affordable housing, are paying off.
But Mark Leff, vice president of the Home Builders Association of Massachusetts, said housing, particularly single-family, remains in short supply, and much more needs to be built to ease prices. He said much of the jump in building permits is due to multifamily housing developments, proposed years ago under the state affordable-housing zoning law, finally getting through the regulatory process.
''We're still not addressing the fundamental need for single-family homes," said Leff, who oversees construction lending at Salem Five Cents Savings Bank in Salem. ''We have constrained the supply to such an extent, I don't see much opportunity for prices to decline."
Economists expect home prices to moderate, and perhaps dip, when mortgage rates increase. Those rates, still at historically low levels, are expected to rise as the US economy strengthens.
The Massachusetts economy, meanwhile, is only beginning to gain momentum. Despite adding nearly 35,000 jobs since the labor market hit bottom in January 2004, the state still has 172,000 fewer jobs than it did in early 2001, the prerecession employment peak.
Still, analysts said, April's job gains show the economy has taken a steady path upward. Even the struggling manufacturing sector grew, adding 700 jobs.
Michael Connors, chief financial officer of Professional Staffing Group, a Boston employment agency, said yesterday the labor market is tightening, particularly for professional and technical workers. Employment in professional and business services, which includes lawyers, accountants, and technology consulting firms, has grown steadily, adding nearly 12,000 jobs over the last year, 4,700 in April.
Some job seekers are getting multiple offers, Connors said. And employers, who once took their time hiring and interviewing candidates, are now moving quickly. ''They see a good candidate, and they pull the trigger right away," he said.
Take Angela Shepard. Shepard, a 23-year-old accountant, moved to the Boston area from Chicago at the end of April. In the course of a week, she had interviews with four companies, received four offers, and took a job at Brown & Brown LLP in Boston.
''I was surprised at how quickly they got back to me," she said. ''It's a lot better to have a choice."
Romney yesterday hailed the improving labor market, but said the state has to do more, such as streamlining permitting and cutting unemployment insurance costs, proposals included in his $600 million economic stimulus plan. The state has 21,000 fewer jobs than when he took office.
''We're seeing a continuation of a very good trend," Romney said of April's job growth. ''If we want to see the gains keep coming, we have to work together on a stimulus bill."
State Representative Daniel Bosley, a North Adams Democrat and House chairman of the Economic Development and Emerging Technologies Committee, agreed the job growth was good news. House Democrats, he said, will later propose their own economic legislation.
''We can improve our competitive position, and remove some of the impediments to business," he said. ''The key is steady job growth and sustainability."
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