The Executive Office of Labor and Workforce Development released data Thursday stating that Massachusetts experienced the best job growth in 2015 since 2000.
Unemployment in Massachusetts declined from more than half a percent from 5.3 to 4.7 percent from the start to end of 2015, according to a Thursday press release. The national unemployment average has also fallen from 5.6 to 5 percent.
Labor and Workforce Development Secretary Ronald Walker II said in the release that the commonwealth’s job growth is representative of the strengthening national economy.
“The commonwealth’s strong job gains in 2015 reflect the strength and diversity of our economy,” Walker said in the release. “The preliminary over-the-year job gain estimates indicate the strongest over-the-year job gains since 2000.”
Massachusetts has also added more than 7,000 new jobs and has a total employment of more than 74,000 people, causing the highest growth total since 2000, according to the release. The construction industry has experienced the largest job growth at a rate of 7.4 percent, more than triple the rate for all employment in the commonwealth.
Kamran Dadkhah, a professor of economics at Northeastern University, said the recent economic growth in Boston is especially great for those entering the job market for the first time.
“The reasons [for growth] have been a diversified economy, a number of first-rate universities that attract students from all over the world and a skilled and educated workforce,” Dadkhah said. “The lowering of [the] unemployment rate is good news for everyone, but particularly for newcomers to the job market.”
Dadkhah said a healthy economy centers on individuals’ field skills and satisfaction with their jobs.
“More important than overall health of the economy is the choice of fields and acquiring marketable skills,” Dadkhah said. “No doubt one has to choose a field and pursue an occupation that one likes and can live with, but also to find out what potential employers are looking for and what is the future shape of the economy.”
Dadkhah said there has been a decrease in the amount of people in the workforce and, while there are many possibilities for the decline, welfare plays a major role.
“Either we have to assume that the population is aging and that would mean a smaller segment of the population will work and produce or, more likely, many have given up looking for jobs and are relying on welfare payments,” Dadkhah said. “The drop in participation rate hasn’t been significant. In the first six months of 2015, the labor force participation rate increased by less than one percentage point and then it declined by close to two percentage points.”
Dadkhah said he doesn’t expect much change for the 2016 unemployment rates, despite the improvement in unemployment this past year, but there are reasons to be optimistic.
“The Massachusetts economy seems to be doing fine and attracting investment and economic activities,” Dadkhah said. “On the other hand, the national economy may experience a shock. China’s economy is experiencing a slowdown, [the] oil market is flooded with excess reserves and the Middle East and North Africa are in deadly turmoil. These may cut the demand and cause output to stop growing and cause an increase in the [United States] unemployment rate.”
Several residents said they are hopeful about the rise in city job opportunities.
Marie Delgado, 67, of East Boston, said she hopes the dropping unemployment rate could resolve economic problems.
“Well, [the declining unemployment] can’t be a bad thing,” she said. “I don’t know much about politics or stuff like that, but I do know that people are always saying how bad the economy is, so it’s nice to hear that things are getting better.”
Irvin Jacob, 79, of Roxbury, said he is happy that the economy appears to be improving.
“It sounds like [the employment search is] going well, which has to be a good thing,” he said. “So this, of course, is a good thing for everyone. I think people here should be hopeful about this.”
Ivette Melendez, 21, of Dorchester, who recently moved to Boston from Connecticut, said it is good to have jobs available for those who are new to the city.
“I didn’t know how expensive this place was until I got here,” she said, “Now I have two jobs, so I think if people really do want a job here, they’ll find it.”
