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UNEMPLOYMENT RATE AT 4.9 PERCENT IN AUGUST
SOLID JOB GROWTH RECORDED IN EDUCATION AND HEALTH SERVICES
Massachusetts Division of Unemployment Assistance
September 14, 2006
Contact: Linnea Walsh
O: 617-626-7111
C: 617-293-3080
Elliot Winer, 617-626-6558
The Massachusetts unemployment rate increased from 4.7 percent in July to 4.9 percent in August. The Massachusetts rate has averaged 4.9 percent through the first eight months of 2006 with the monthly rates remaining in a consistently narrow range between 4.6 percent and 5.0 percent throughout the previous two year period. One year ago the Massachusetts rate was 4.7 percent.
Massachusetts jobs were off by 1,000 in August to 3,224,700, but there was also an upward revision of 600 to the July estimate that raised last month’s increase from the originally reported gain of 4,000 to 4,600. Massachusetts has added 21,600 jobs since January 2006, and at 3,224,700, added 29,100 jobs from one year ago. The education and health care super sector generated the most jobs in August while the manufacturing and financial activities super sectors fell back to their June levels. Massachusetts has added 57,600 payroll jobs since bottoming out in December 2003.
Employment in professional, scientific, and business services increased by 300 in August to 470,000. This super sector has recorded solid job gains of 3,200 over the past three months. Over the month gains occurred in computer systems design services and architectural and engineering services. Over the year, employment is up 8,900 or 1.9 percent, the highest annual growth rate and tied for the largest net job increase of any industry super sector. Nearly all the net over the year growth occurred in the professional, scientific, and technical segment, with strong job growth recorded in architectural and engineering services (+5.5 percent), management, scientific, and technical consulting services (+4.3 percent), scientific research and development (+4.1 percent) and computer systems design services (+2.7 percent). This overall super sector has added 31,500 jobs since bottoming out in June 2003, but employment is still off 37,500 or 7.4 percent from its January 2001 peak of 507,500.
Education and health services added 2,200 new jobs in August, its largest one month increase since November 2002. Jobs were added in physician’s offices, outpatient care centers, home health care services, and hospitals. In fact, the hospital industry bucked a three year trend of recording monthly declines between July and August. Over the most recent five-month period, employment in education and health services has expanded by 6,800 (an upward revision of 1,500 to the July estimate raised last month’s increase from the originally reported gain of 300 to 1,800). Reaching 600,000 jobs for the first time ever, Massachusetts’ largest super sector has added 8,900 jobs from one year ago, tied for the largest net increase of any super sector. Most of the over the year job gains were recorded in hospitals and ambulatory health care services.
Trade, transportation, and utilities employment was up by 200 in August, the first monthly increase since April. Employment is down 2,000 from one year ago to 568,100, as this super sector remains the only one to show an over the year job decline. The largest over the year gains were posted in building material stores and furniture and home furnishings stores, while the only sizeable retail job losses were recorded in general merchandise stores (-2,600 or -5.9 percent).
Employment in the information super sector was essentially unchanged (-100) at 87,800. Information jobs are up 200 since August 2005 as a strong over the year job increase of 800 or 3.8 percent in software publishing was offset by a decline of 800 or 3.7 percent in newspaper and periodical publishing. Information jobs are down 29,200 or 25.0 percent from its January 2001 peak of 117,000.
Financial activities lost 800 jobs in August, nearly offsetting the 900 job gain in July. Banking gave back some of its July gains while other small losses were noted in securities and commodities and rental and leasing services. However, at 225,200, financial activities jobs are up 3,600 or 1.6 percent from one year ago, the second highest annual growth rate of any super sector. Banking, real estate, and insurance accounted for most of the over the year gains.
Leisure and hospitality employment was up 300 in August. At 294,200, leisure and hospitality jobs are up 2,100 over the year.
Construction employment was down 800 in August after increasing by 600 in July. Employment has fallen in five of the last seven months, resulting in a 2,500 net job loss since January. However, with the rapid job increase in late 2005, construction employment at 142,000 is still up 2,100 or 1.5 percent over the past year.
After rising for four consecutive months and posting a 1,200 job gain in July, manufacturing employment fell by 1,100 in August. However, much of the July increase and subsequent August decline may be attributed to changes in the typical July manufacturing seasonal pattern. At 306,300, manufacturing employment is up 2,400 or 0.8 percent from one year ago, with all the net gains (+2,600) occurring since January. The largest over the year job gains occurred in computer and electronic products, printing, and transportation equipment, while textiles and paper manufacturing posted the biggest declines. Manufacturing employment is down 104,100 jobs, or 25.4 percent, since reaching 410,400 in July 2000.
The number of employed Massachusetts residents decreased by 1,300 in August to 3,207,400, while the number of Massachusetts unemployed increased by 4,300 to 163,500. The labor force (the sum of the employed and the unemployed) was up 3,000 over the month to 3,370,900 and 7,200 from one year ago.
The job numbers are the result of a monthly survey that uses U.S. Department of Labor Bureau of Labor Statistics methodology. More than 9,000 Massachusetts employers are surveyed to determine the number of jobs by industry. These estimates are the economic indicator used to gauge employment growth patterns in Massachusetts.
Estimates for the labor force are developed using the U.S. Department of Labor Bureau of Labor Statistics model. The estimates are based on information on Massachusetts residents’ employment and unemployment status collected through a small monthly sample survey of households.
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STATE'S TOP JUDGE SEES POLITICIZATION OF JUDICIARY
By Gintautas Dumcius
STATE HOUSE NEWS SERVICE
BOSTON, SEPT. 19, 2006….Most states have abandoned the John Adams model of selecting judges as more nations across the world are adopting it, the state's top judge said Tuesday.
In his model constitution, drafted in 1780, Adams, the second U.S. president and a Quincy native, set out three co-equal branches of government, "none subordinate to the other," said Supreme Judicial Court Chief Justice Margaret Marshall.
Adams also provided for judges' removal through impeachment, "honorable salaries," and lifetime appointments, with Massachusetts later amending to mandatory retirement at age 70, Marshall said.
Many judges in state courts, where 95 percent of cases take place, face some form of election, retention, and reappointment, Marshall said.
That, coupled with politically motivated attacks on judges, the influx of special interest funds into judicial elections, and the loosening of judicial ethics rules thanks to a Supreme Court ruling in 2002 have all called into question judges' independence, she said.
"Combined, these developments make a toxic brew," Marshall said in a morning speech at the Greater Boston Chamber of Commerce's government affairs breakfast at the Westin Hotel in Copley Place.
Having fair and impartial judges is "essential" to a strong economy and free enterprise, she said, adding that a leading Massachusetts businessman told her he doesn't do business in countries where the rule of law isn't upheld.
Appointing judges and having them appear before a governor, a U.S. president or U.S. Senate committee, for reappointment, raises concerns about their impartiality as they're forced to explain their decisions, and leads to the "fundamental weakening of the judicial system," she said.
Attacks on individual judges now reach far beyond anger over their decisions with denunciations, many with a "populist flavor," coming from politicians and talk show hosts, she said.
In the last decade, judicial elections have also become harsher, and more expensive and competitive, Marshall said.
Many judicial candidates, mirroring politicians who run as outsiders to the political culture in Washington, D.C., "run against the bench," she said, expressing relief that she did not have to be standing at the podium asking for money.
"Once people have the vote, it's very hard to take it away from them," Marshall acknowledged to the 180 people at the breakfast, who gave her an extended round of applause at the end of her speech.
In the early 19th century, many states moved to adopt popular elections for judges: In 1812, lower court judges in Georgia could stand for office, and in 1832, Mississippi became the first state to allow for the popular election of all judges, Marshall noted.
Massachusetts, where the governor has the power to appoint judges, has been fortunate, with the judiciary working closely with the other two branches of government - the state Legislature and the governor, she said.
Adams did intend for one aspect to be political - the governor's selection of judges to serve, according to Marshall.
"That has worked out very well," she said, praising in particular former Gov. Ed King's nominations - Justices Joseph Nolan, Francis O'Connor, and Neil Lynch.
At the start of the breakfast, Guzzi asked for a moment of silence for King, who died Monday at age 81.
The establishment of a fair and independent judiciary is now taken for granted, and civics courses need to teach students who John Adams is, along with the Supreme Judicial Court's successes and mistakes, Marshall said. But there should not be teachers specializing in civics, she added. "It has to be part and parcel of everything."
The timing of her speech - on the day of statewide primary elections - was by chance, she said. "It was purely coincidental," she told the News Service, declining to provide any insight into the elections.
"Oh, no," she said when asked, before leaving with Paul Guzzi, the president of the Greater Boston Chamber of Commerce, who also declined to comment on the election.
Guzzi called the speech "uplifting," and pointed to Marshall's allusion to making the judiciary more fiscally and technologically accountable as a "very important achievement."
"She reminded us of the importance of the rule of law, and the importance of having a strong, independent judiciary," he added.
"I think the chief justice once again pointed out some areas for us to consider," including the way some states elect judges, said Priscilla Douglas, consumer affairs chief under Gov. William Weld and now head of PH Douglas and Associates. "It may impact the type of justice people get," she said.
While talk of local elections was publicly avoided, local sports teams weren't.
In his introductory remarks, Guzzi joked Marshall's "greatest achievement" was when she last spoke before the business group in October 2004, before the now-famous Game 6 between the hometown Red Sox and the New York Yankees.
Marshall issued an edict for the Sox to defeat the Yankees, later issuing an additional edict for them to win the World Series.
The Red Sox beat the Yankees 4-2 that night, going on to win Game 7 by a score of 10 to 3 before sweeping the St. Louis Cardinals for the first World Series championship in 86 years. The team has struggled since then, and are unlikely to make the playoffs this year.
"I'm wonderfully delighted the team followed my order," she said.
"Maybe the lesson is we need to invite the chief justice earlier in the season," Guzzi quipped.
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