Will Bay State run out of workers?
Bay State employers added more than 10,000 jobs last month and more residents rejoined the labor force, the latest signs that Massachusetts’ labor market is continuing to grow — though some analysts worry the good times may soon be coming to an end.
“It’s been steady, relatively strong growth,” Northeastern University economics professor Alan Clayton-Matthews said of the recent uptick.
“I keep on being amazed that employment can keep on growing at this rate when we should be running out of workers,” he said.
Employers added 10,100 jobs last month after adding more than 7,000 in January, the state Department of Labor and Workforce Development announced yesterday. The unemployment rate rose to 3.4 percent, an increase that is likely attributed to the labor force participation rate — the percentage of people either working or actively looking for a job.
And though these those numbers fluctuate from month to month, a sustained increase indicates the longterm unemployed are becoming more confident in their ability to find a job.
The state’s run of job growth is so impressive, economists said, that it could become harmful.
“It continues to raise concerns about the sustainability of this pace, about the availability of workers,” said Michael Goodman, of UMass Dartmouth’s Public Policy Center.
The fear, he said, is if businesses can’t find the workers they need, wages will climb and force companies to expand outside of the Bay State.