Geography of Massachusetts - Human Geography - Economic Geography

Economic Geography

A finer-grained statistical unit than the MSA is the New England City and Town Area, or NECTA. NECTAs take advantage of the administrative subdivision of the entire territory of Massachusetts and other New England states into towns and cities. (No part of Massachusetts is unincorporated county territory.) Each NECTA consists of a cluster of cities and towns defined by commuting patterns, which therefore correspond roughly to local labor markets. While the U.S. Census Bureau defines metropolitan areas by county boundaries, the U.S. Bureau of Labor Statistics (BLS) offers data on employment by NECTA.

By far the largest NECTA in Massachusetts is the Boston-Cambridge-Quincy (Greater Boston) NECTA, which covers eastern Massachusetts and extends into southern New Hampshire. This NECTA consists of a central Boston-Cambridge-Quincy NECTA Division, including the City of Boston and the surrounding cities and suburbs. The other satellite NECTA divisions in the Greater Boston NECTA are the Brockton-Bridgewater-Easton NECTA Division, the Framingham NECTA Division, the Haverhill-North Andover-Amesbury NECTA Division (extending well into southeastern New Hampshire), the Lawrence-Methuen-Salem NECTA Division (extending into southern New Hampshire), the Lowell-Billerica-Chelmsford (or Lowell) NECTA Division (extending into southern New Hampshire), the Lynn-Peabody-Salem NECTA Division, the Nashua NECTA Division (mainly in New Hampshire but including a few Massachusetts towns), and the Taunton-Norton-Raynham NECTA Division.

The other Massachusetts metropolitan NECTAs are the Barnstable Town NECTA (covering most of Cape Cod), the Leominster-Fitchburg-Gardner NECTA (in north central Massachusetts), the New Bedford NECTA (in southeastern Massachusetts), the Pittsfield NECTA (in far western Massachusetts), the Springfield NECTA (in the Pioneer Valley and extending into northern Connecticut), and the Worcester NECTA (in central Massachusetts, extending into northeastern Connecticut).

According to the BLS, total nonfarm employment in Massachusetts in 2005 was about 3.2 million. About half of these jobs were located in the Boston-Cambridge-Quincy NECTA Division, which lies entirely within Massachusetts, although this NECTA accounted for only about 43% of the state’s population, according to 2005 Census estimates. This indicates either a higher labor participation rate in central Greater Boston or a surplus of commuters traveling to work from other parts of Massachusetts or neighboring states. Clearly, Greater Boston dominates the employment and economy of Massachusetts.

The other major centers of employment in Massachusetts are the Springfield and Worcester NECTAs. The Springfield NECTA accounts for slightly more than 10% of the jobs in Massachusetts, while the Worcester NECTA accounts for slightly less than 10% of the state’s jobs. (Although both of these NECTAs extend into Connecticut, the towns that they include in Connecticut account for only a small portion of their population and, probably, of their employment).

In every Massachusetts NECTA, service-sector jobs far outnumber goods-producing (natural resources, construction, and manufacturing) jobs. Beyond this generalization, there are some differences in the employment and economic structures of the state’s NECTAs and NECTA divisions.

In the far southeastern corner of Massachusetts, the Barnstable Town NECTA, nearly coterminous with the summer resort region of Cape Cod, has an atypical employment structure. It has the lowest share of employment in goods-producing jobs, which account for only 9.5% of its employment. Most of these jobs are in the construction sector. Manufacturing jobs account for only 3.3% of employment, compared with 9.6% for the state as a whole. On the other hand, the Cape Cod NECTA has the state’s highest percentages of employment in retail trade (17.9%, versus 11.1% for the state) and in leisure and hospitality (16.9%, versus 9.1% for the state). These numbers reflect the continuing importance to Cape Cod of summer tourism.

The central Boston-Cambridge-Quincy division of the larger NECTA with the same name also has a relatively low percentage (6.7%) of manufacturing employment. Although this division accounts for about half of the state’s total employment, it has only about a third of the state’s manufacturing jobs. Its largest manufacturing subsector is the production of computers and electronic products (28% of the division’s manufacturing jobs). This subsector is centered not in Boston’s urban core, but in the suburbs to the north and west, along Route 128. The economy of central Greater Boston is even more biased toward service provision than that of the rest of the state.

The particular economic strength of central Greater Boston is knowledge-intensive activities. It accounts for 62.2% of the state’s information sector jobs, and 66.0% of the jobs in the software-publishing subsector. Central Greater Boston has 68.8% of the state’s financial sector jobs, and 92.5% of the jobs in the investment subsector. It has 69.3% of the state’s jobs in management and technical consulting. Greater Boston is noted nationwide for its prestigious institutions of higher education, such as Harvard University and MIT, and the region is home to 77.8% of the state’s higher-education employment. Together, the knowledge-intensive information, financial, professional and business services, and education sectors account for 36.6% of the jobs in central Greater Boston, compared with 28.8% of the jobs in Massachusetts as a whole and 23.2% for the United States as a whole.

The satellite NECTA divisions that lie on the periphery of the Greater Boston NECTA all have higher percentages of employment in manufacturing than central Greater Boston or than Massachusetts as a whole. Many of these satellite NECTA divisions are centered on historic manufacturing cities, such as Haverhill, Lawrence, Lowell, Lynn, and Brockton. The BLS breaks down manufacturing employment only for the Framingham and Lowell NECTA divisions, to the west and northwest of Boston, respectively. In both of these divisions, computer and electronics manufacturing accounts for well over half of manufacturing employment. Except for Lowell, these satellite NECTA divisions also have higher shares of employment in retail trade than central Greater Boston or Massachusetts as a whole. These divisions, located along the major highways radiating from Boston, are particularly rich in shopping centers and wholesalers. The Lowell and Framingham divisions have even higher shares of employment in the information sector than central Greater Boston. This reflects the strength of these regions in the software publishing and telecommunications subsectors. On the other hand, these satellite divisions have lower shares of employment in financial services and in health and education services than the state average, reflecting the regional dominance of central Greater Boston in these areas. The Framingham division, however, has the state’s highest percentage of jobs in professional and business services (18.5% of employment versus 14.4% statewide), reflecting that region’s strength in technology.

The New Bedford NECTA has the state’s second-highest percentage (16.6%) of manufacturing employment. It has the state’s lowest percentages of employment in the financial sector (3.1%) and in professional and business services (6.25%).

The Leominster-Fitchburg-Gardner NECTA has the state’s highest percentage (17.8%) of manufacturing employment. It has by far the state’s lowest percentage of employment (1.0%) in the information sector and the second-lowest rate of employment in professional and business services (6.73%). On the other hand, this NECTA has the state’s highest percentage of employment (16.4%) in government.

The Worcester NECTA has a relatively high percentage (12.0%) of employment in manufacturing. Next to the Barnstable Town NECTA, it has a high percentage (14.9%) of employment in the healthcare sector. It has the lowest percentage of employment (8.7%) in the leisure and hospitality sector, reflecting the relative underdevelopment of its tourism industry.

The Springfield NECTA also has relatively high (12.9%) manufacturing employment. It has the state’s largest percentage of employment in the transportation and utilities subsector (4.5%, versus 2.6% for the state as a whole). It has the second-highest percentage (16.3%) of jobs in government.

Despite the small size of the Pittsfield NECTA, its employment by sector is similar to that of Massachusetts as a whole for most sectors. However, it has the state’s highest percentage of employment (20.4%) in the education and healthcare sector. It also has the second-highest share of employment (13.2%) in the leisure and hospitality sector. This reflects the importance of tourism in the Berkshires to the region’s economy!