A recently-released study by the Massachusetts Institute for a New Commonwealth (MassINC) sounds an ominous note regarding the state's ability to generate economic activity and thus remain an attractive place for working families. It ought to serve as a clarion call to the incoming Deval Patrick administration as it determines goals and budget priorities for the new year.
Clearly it can't be business as usual in the Bay State which is losing workers and businesses in droves to states that offer a more hospitable environment. And we're not just talking about the weather.
How bad is it? Consider the following points taken from the executive summary of the MassINC study:
* "From 2000 to 2005, the Massachusetts resident labor force did not grow at all, while the national labor force grew by nearly 5 percent. On this measure, Massachusetts ranked 48th lowest among the 50 states."
* "In the most recent three years (2003-2005), the Massachusetts labor force contracted by 1.7 percent, and it was the only state in the nation to decline each year during this time period." In contrast to the decline here, all five of the other New England states saw an increase in the number of workers, and the labor force nationally grew by 3.1 percent.
* "From 2000 to 2005, the state's working-age population increased by 94,000 or 1.9 percent, while the nation's increased by 6.4 percent."
* "From 2000 to 2005, the state lost, on net, 233,000 residents to other states." The top five destinations for those leaving Massachusetts were Florida, Texas, New Hampshire, Connecticut and Rhode Island.
Cold winters and the high cost of living here have historically prompted many to look south when they reached retirement age. But what is particularly disturbing today is the number of young people headed in the same direction. And perhaps even more disturbing: The fact that some are headed north where the winters are even colder.
According to the MassINC study, "The high levels of outmigration from Massachusetts raise important questions about the attractiveness of Massachusetts as a place to live and work, especially for those who have choices."
This study does not address the Bay State's competitiveness in terms of attracting new business or retaining existing ones. But it says something when homegrown companies like Fidelity Investments and Staples choose to shift some of their office operations elsewhere, as has happened recently.
The constant pandering to the unions, particularly on the public side; a regulatory morass that makes building a new plant an expensive and time-consuming process; and a thicket of local zoning regulations whose prime purpose seems to be to discourage new housing construction, all serve as a disincentive to invest here. And where the jobs go, people - particularly those with families to support - are sure to follow.
This latest study is meant more to quantify the twin problems of outmigration and a declining labor force than propose solutions. But the final chapter of the executive summary offers a few suggestions worth heeding on how to stem the exodus and shore up the ranks of the state's workforce:
* "Policymakers should make it as easy as possible for people to lay down roots in our state, which will help deter them from leaving our state in the future."
In other words, we need to encourage the construction of housing that is affordable both to young families and those looking to downsize in terms of living space and the amount they pay. Attitudes must change so that new families coming to town, including those whose children might enroll in local schools, is not regarded as a bad thing.
* "Targeted efforts focused on education and skills, the keys to economic success, are critical. ... Strategies should be developed that link increases in public spending to performance."
The governor-elect has said that spending money on higher education will be a priority. But this spending must be focused on teaching skills that will be of value in today's high-tech world and programs that work.
* Since older workers will be an increasingly important component of the Bay State workforce, companies must adapt to their needs by allowing for flexible work schedules and retraining.
* Since the share of immigrants in the workforce has nearly doubled since 1980, the report notes, "It is important for the state to take a leading role in expanding and reforming efforts to teach immigrants to speak English."
Recognizing English as the official language of the commonwealth, as was recently done in Arizona, would reinforce the point that fluency in English is essential to one's success in the workplace.
Email This Page!