Metro Economic Outlook: Boston

Metro Economic Outlook: Boston

Metro Economic Outlook: Boston
With a sturdy foundation of education and health care, and a jobless rate that’s frequently below the national
Unemployment rate average, Boston’s economy has been on solid ground for quite some time. However, more work needs to be done to sustain the recent growth.
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10
8
“There are three pillars we look at,”said Carolyn Ryan,
VP of research and data analytics at the Greater Boston
Chamber of Commerce. “First is transportation, because we need to do a better job of getting people to work and on time. Second is workforce development, in order to meet the needs of our employers, and third is the housing issue. Boston has very high prices, and it makes ‘getting in the game’ very challenging for many residents.”
6
4.6
4
2.4
2
0
U.S. Boston Metro
Source: U.S. Bureau of Labor Statistics (November 2016)
Aside from the education and health care sectors, other economic drivers for the Boston metro region – which spans five counties in Massachusetts and two counties in New Hampshire – include financial services and tourism.
BOSTON METRO: VITAL STATS
Total working age population: 2,960,588 out of a total population of 4,774,321
Number of households: 1,782,655
The life sciences industry also has a significant local presence. Boston-based entities have received nearly
$29 billion in funds from the National Institutes of Health since 1992, according to a report from the Boston Redevelopment Authority.
Consumer price index: 261.675 (goods and services that cost $100 in 1982-1984 cost $261.68 in
November 2016)
Percentage of local residents with bachelor’s degrees: 25.2
In order to identify more job opportunities for students at the 80-plus college and universities in the region, the Internship Collaborative – a joint effort of the Boston chamber and the Federal Reserve Bank of Boston – created Internhub.com, a free website designed as a centralized platform to match college students with internships available at local employers.
With graduate or professional degrees: 20.8
Workers in STEM industries: 39 per 1,000 residents
Sources: U.S. Census Bureau (2015), U.S. Bureau of Labor
Statistics (November 2016), American Institute for Economic
Research (2015)
Last updated on 1/1/2017 Unemployment and most CPI data updated monthly. Other data updated once annually as it becomes available. “As far as the labor force, there’s more of a focus on retaining the recent college graduate and millennials,” Ryan said, “as well as fostering the innovation sector and entrepreneurial sector. People identify them as key areas for growth.”
Labor force makeup
Government
307.1
100.6
237.4
558
445.4
183.7
77.1
Other services
Leisure and hospitality
Education and health services
Professional and business services
Financial activities
Information
Trade, transportation and utilities
Manufacturing
417.3
189.4
102
Mining, logging and construction
Total nonfarm
2618
Number in thousands
Source: U.S. Bureau of Labor Statistics (January 2016)
03,000 1,000 2,000
Some of the Fortune
500 members that call the Boston region home are financial interest at District Hall, a high-tech incubator facility for startup companies.
State Street, medical device company Boston Scientific, and property and casualty insurer Liberty Mutual.
The latest large-scale development in the waterfront region, called One Seaport Square, broke ground in
November 2014. It will include two towers with a total of 250,000 square feet of retail space on the lower levels and 832 luxury apartments. The project is expected to be finished in 2017 and Much of the City of Boston’s recent development activity has focused on its waterfront. Drug manufacturer Vertex Pharmaceuticals opened a new
1.1 million-square-foot headquarters complex there in
2014. Several local entrepreneurs have also set up shop is part of a broader 23-acre
Working age categories redevelopment of that section of Boston. It will be joined in 2018 by
General Electric, which will move its
292,058, 10%
344,989, 12% headquarters from Connecticut to
Boston and bring 800 jobs.
330,757, 11%
20 to 24
25 to 34
35 to 44
45 to 54
55 to 59
60 to 64
“There’s a lot working in our favor,”
Ryan said. “We’re lucky in that we have higher education and medical institutions. We’re educating people and we can keep them here. With professional services and biotech, they are typically well-paying jobs and that trickles down to the rest of our economy.”
702,894, 24%
688,946, 23%
600,944, 20%
Source: U.S. Census Bureau (2015)
Last updated on 1/1/2017
2Employee Benefits Data
Employers offering consumer-driven health plans
Employers in the Boston metro area are slightly more likely to offer consumer-driven health plans compared with the national level, by a margin of 2 percent.
25%
20%
15%
10%
5%
21%
19%
0%
U.S. Boston Metro
Employers offering domestic partner benefits
They are somewhat more likely to offer domestic partner benefits, by an 11 percent margin above the national level.
70%
60%
50%
40%
30%
20%
10%
0%
61%
50%
U.S. Boston Metro
Source: SHRM Health Care Benchmarking Database (2016)
Retirement
Employee 401(k) participation rate
80%
The Boston metro area
68%
66%
70% workforce’s rate of employee
401(k) participation is slightly above the national level, by a margin of 2 percent.
60%
50%
40%
30%
20%
10%
0%
U.S. Boston Metro
Source: SHRM Retirement Welfare Benefits Database (2016)
Last updated on 1/1/2017
3Income and Turnover Data
Overall turnover rate
25%
20%
15%
10%
5%
19%
The Boston metro area’s workforce has a lower turnover rate than the national level, by a margin of 3 percent.
16%
0%
U.S. Boston Metro
Source: SHRM Human Capital Benchmarking Database (2016)
Median household income
Median household income in the Boston metro area is significantly higher than the national level, by more than $22,000 annually.
$90,000
$78,800
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
$56,516
U.S. Boston Metro
Source: U.S. Census Bureau (2015)
Per capita income
$41,334
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Per capita income in the Boston area is also much higher than the national level, by more than $11,000 annually.
$29,979
U.S. Boston Metro
Source: U.S. Census Bureau (2015)
Last updated on 1/1/2017
4Top Management Salaries Data
Median salaries, top management
Median salaries for top management level employees in the Boston area are typically on par or considerably above the national
$322,100
$322,100
Top legal executive
Chief information officer
*Top HR executive
$355,400
$280,500
$291,800
$232,500 median.
$384,300
$348,600
Chief financial officer
Chief executive officer
*Without labor relations
$850,000
$650,000
$0 $200,000 $400,000 $600,000 $800,000 $1,000,000
Boston Metro U.S. experience
Source: Willis Towers Watson Data Services 2016 Survey Report on Top Management Compensation
Project lead: Joseph Coombs, Senior Analyst, Workforce Trends, SHRM
Project contributors: Shonna Waters, Ph.D., VP of Research
External contributors: Carolyn Ryan, Greater Boston Chamber of Commerce
Copy editing: Katya Scanlan, copy editor
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Last updated on 1/1/2017
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