University of Massachusetts Donahue Institute The State of the State Economy Michael D. Goodman, Ph.D. Director of Economic and Public Policy Research Office of the President University of Massachusetts Donahue Institute President, New England Economic Partnership July 12, 2006

University of Massachusetts Donahue Institute In recent years, growth in Gross State Product has consistently lagged that of the US.

University of Massachusetts Donahue Institute At present pace, the Commonwealth will not regain the jobs lost during the most recent recession until at least 2010.

University of Massachusetts Donahue Institute Employment growth will be led by Professional and Business Services, Education and Health Services and Leisure and Hospitality. Source: New England Economic Partnership

University of Massachusetts Donahue Institute Statewide Outlook for Travel and Tourism Sector Employment and overall industry growth are expected to be strong for the balance of the decade. Weak dollar is expected to continue to attract international visitors, especially from the European Union. In a recent UMass Donahue Institute business poll, over 27% of coastal tourism and recreation firms in Massachusetts reported that they plan to hire additional employees and over 2/3 expect their sales/revenues to grow in the next 12 months.

University of Massachusetts Donahue Institute For more information: For a timely and comprehensive analysis of the Massachusetts economy, please visit and subscribe to MassBenchmarks at: For more information about the New England Economic Partnership see me or visit