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Mass. jobless rate falls to 6.8%, lowest in three years

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January 20, 2012|By Erin Ailworth

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In 2011, payroll employment in Massachusetts grew at a 1.3 percent rate, the same rate as job growth nationally. But in the first half of the year, Massachusetts employment grew at an annual rate of about 2.5 percent, double the national rate. In the last six months of 2011, however, job growth in the state was essentially flat, while employers nationally added jobs at a 1.4 percent annual rate.

Brian Bethune, an economics professor at Amherst College, said the local job market is being held back by a lack of growth in the number of small businesses in the state.

“We have a situation where there are not a lot of new start-ups, not a lot of new companies being created,’’ he said. “While Massachusetts is doing pretty well and the unemployment rate certainly looks encouraging, there’s not a lot of dynamism in the economy.’’

Clayton-Matthews said December’s declines are not too worrisome given the state’s growth in early 2011, but he is concerned about looming challenges: For instance, debt problems in Europe, a major market for technology, drugs, and other Massachusetts products, could “put a damper on 2012.’’

“There are some real risks with the situation in Europe, especially for Massachusetts,’’ he said. “We’re heavily concentrated in Europe as a destination for our exports.’’