Campus News - Framingham State College Press Releases

MEDIA ADVISORY
FOR RELEASE MAY 4, 2007

CONTACT: Peter Chisholm 508/626-4025

Framingham State College
MetroWest Economic Research Center (MERC) Holds
15th Annual Conference

Economic Engines 2: MetroWest and Greater Marlborough

WHO: The Framingham State College MetroWest Economic Research Center (MERC)
WHEN: Friday, May 4, at 8:00 a.m.
WHERE: The Sheraton Hotel Route 9, Framingham

At its 15th annual conference the Framingham State College MetroWest Economic Research Center will discuss the following economic findings:

UNEMPLOYMENT

In 2006, the MetroWest (MW) CCSA experienced an annual unemployment rate of 3.7% while the Greater Marlborough Region's (GMR) rate was 4.1%; both were below the Massachusetts rate of 5.0% and the United States rate of 4.6%.

Hudson had the highest unemployment rate in the MW/GMR region in 2006 at 4.6%. Wayland posted the lowest unemployment rate at 3.3%. All MW/GMR communities had rates lower that the state; all but Hudson had unemployment rates below the U.S. rate

In December 2006, the largest portion of the MW/GMR labor force came from Framingham, 24.0% of the 153,902 workers in the region. Marlborough and Natick contributed 14.6% and 12.2% respectively. These three towns had almost 51% of the region's total labor force.

EMPLOYMENT

In 2005 MW/GMR employment totaled 175,500 jobs, up 4,600 or 2.7% from the previous year. This was, however, 2,600 jobs below the region's historical peak of 178,200 in 2001.

Four super sectors generated over two-thirds of MW/GMR employment: Professional & Business Services provided 21.1% of the region's jobs, followed closely by Trade, Transportation, & Utilities at 20.1%, Manufacturing with 16.0% and Education and Health Services at 10.5%. One out of every 18 of the state's jobs is in the MW/GMR region.

Total payroll in the MW/GMR region hit an historic high of $10.3 billion in 2005, an increase of 5.2% over 2004. The three super sectors with the largest shares of total employment also generated the largest shares of total payroll. Framingham produced over 25% of the total.

The MW/GMR nominal (not corrected for inflation) average wage rose from $57,100 in 2004 to an historical peak of $58,500 in 2005; however the real wage (corrected for inflation) fell slightly, down 1.0%.

The number of establishments in MW/GMR more than doubled from 4,800 establishments in 1980 to 10,530 in 2004, an increase of 119% before falling to a total of 10,200 in 2005. Two super sectors, Professional and Business Services, and Trade, Transportation and Utilities, were home to almost half of the region's establishments.

JOB CHURNING

In 2005, total employment in MW/GMR was up 4,600 jobs from 2004. This was the result of at least 8,200 jobs created by new or expanding firms being offset by at least 3,600 jobs which were destroyed due to closing or contracting firms.

Over that year, Professional and Business Services saw 1,800 jobs created and 200 jobs destroyed for a net gain of 1,600 jobs. The Information super sector suffered the largest net loss, 200 jobs.

MUNICIPAL REVENUE

Total FY07 municipal revenue for the MW/GMR region was $998.4 million. This represents a per capita municipal revenue of $3,605 per person, up from $3,294 per person in FY06.

FY07 state aid for education and general government for the MW/GMR communities totaled $104.3 million, up from $93 in FY06.

Education accounted for 52% of MW/GMR general fund expenditures in FY05. Police, Fire and Other Public Safety expenditures were 10% of the total.

K-12 SCHOOL ENROLLMENTS

MW/GMR public school enrollment (not including charter schools) increased every year from 1995 to 2005 before falling by about 400 students in 2006. The communities with the largest 2006 enrollments were Framingham (8,042 students), Sudbury (4,477), Marlborough (4,444), and Natick (4,441).

In Sudbury (26.3%) and Hopkinton (23.9%) about 1 in 4 residents were enrolled in public schools in 2006. Marlborough has the smallest percentage: 12.7%.

HOUSING

New residential housing permits issued each year for single-family homes in MW/GMR held steady during the late 1990's, declined sharply between 2000 and 2002 and then stabilized again through 2005 before falling to fewer than 420 in 2006.

The estimated median price for sales of existing single family homes in MW/GMR was $447,000 in 2006, down from an estimated $455,000 in 2005. The estimated median sale price for condominiums in 2006 was about $247,000.

COST OF LIVING

The MERC MetroWest Cost of Living Index stood at 115.2 in October 2006, which means that the overall cost of living in MetroWest was about 15% higher in October 2006 than it was in April 2001. The index fell by 2.4% from its October 2005 level of 118.0

The MERC MetroWest Utility and Transportation Indexes were relatively stable from October 1991 to April 1999. Since then they have both risen more rapidly and become more volatile. While the MERC MetroWest Housing Index rose at an average rate of 3.4% per year over that same period, it fell by almost 15.8% between October 2005 and October 2006.

The overall cost of living in MetroWest was about 24% above the national average in October 2006, and the Housing Index stood at 146.0, both lower than in most ACCRA surveys

All of the New England communities surveyed in October 2006 had Overall ACCRA indexes above 100. The highest index was found in Boston: 135.4. Boston's Grocery, Housing, Health Care and Miscellaneous Goods and Services indexes all exceeded those for MetroWest.

MetroWest had the 23rd highest Overall index and the 24th highest Housing index in the October 2006 ACCRA survey.