State firms create 1,300 jobs
Gain in February enough to keep recovery moving
Massachusetts employers boosted payrolls by 1,300 jobs in February, a modest gain, but enough to keep the state's economic recovery on track, economists said.
The state has added jobs in each of the past six months, and more than 20,000 in the past year, the Division of Unemployment Assistance reported yesterday. Recent job growth, however, has been too weak to dent the state's jobless rate, which rose slightly for the second consecutive month, to 4.9 percent, from 4.8 percent in January, and 4.7 percent in December.
Massachusetts is still feeling the effects of the technology bust four years ago. Employment in the information sector, which includes telecommunications and Internet publishers, fell to a new low in February after losing another 900 jobs. Since peaking in early 2001, the sector has shed 32,500 jobs, or more than one in four.
David Pace, regional economist at Global Insight, the Waltham forecasting firm, said the continued job losses might reflect fundamental changes in telecommunications, such as the spread of cellphones and wireless applications. ''What we may be seeing here is a shift in the structure of the sector," he said.
Still, Pace and other analysts said, recent trends suggest the state's economy will continue to generate overall job gains in the coming months. Among the positive signs: Temporary employment, considered a precursor to permanent hiring, rose last month, while the labor force grew for the first time in more than a year. Economists view a growing labor force as a sign that improving job prospects are enticing more people to look for work.
''We haven't seen dramatic growth, but we've seen steady growth," said Elliot Winer, chief economist at the Division of Unemployment Assistance. ''We're recovering; we're adding jobs; and I'm optimistic that we'll continue to add jobs."
After a long and deep recession, the state's economy has rebounded only slowly, substantially lagging the US economy. Despite steady gains since the state's labor market hit bottom early last year, payroll employment in Massachusetts is still 181,000, or 5.4 percent, lower than the prerecession peak in February 2001.
The state also has 30,000 fewer jobs than when Governor Mitt Romney took office in January 2003. In a statement, Romney, who recently proposed a $600 million program to boost job growth, hailed February's employment gains, noting the state has added jobs in 11 of the past 13 months.
''We're on the right track," he said, ''but have more work to do."
State Representative Michael Rodrigues, a Westport Democrat and House chairman of the Labor and Workforce Development Committee, agreed much more work awaits. House leaders next week begin a statewide ''listening tour" to get ideas on how to jump-start the state's economy.
''This recovery is very, very slow, and I'm far from satisfied," he said. ''It's nothing to cry about, but it's nothing to cheer about, either."
Economists said yesterday's employment report added to evidence that the recovery has taken root in Massachusetts. Alan Clayton-Matthews, a public policy professor at the University of Massachusetts at Boston, said the process used to adjust for seasonal variation appears to be understating job gains.
Using a different seasonal adjustment method, he estimates the state added 5,000 jobs in February, and 8,700 in January, compared to the official numbers of 1,300 and 1,900 respectively.
''This actually represents an acceleration in job growth," Clayton-Matthews said. ''The news is good. It's been good for a year, and it's getting better."
Regardless of seasonal adjustment questions, economists said the outlook is brightening. Manufacturing added 500 jobs in February, the first monthly gain since July, while another key sector, professional, scientific and business services, added 1,400. In the last year, the sector nearly 11,000 jobs, the most of any.
Pace, the Global Insight economist, said these gains indicate that firms believe the recovery is well-entrenched and are ready to hire. He added that consumer spending, a vital economic driver, remains solid as leisure and hospitality, which includes hotels and restaurants, added 2,500 jobs last month.
Robert Gavin can be reached at rgavin@globe.com.
