A contrary point of view sees the ongoing need for money management, regardless of the behavior of the financial markets, and anticipates little impact on industry employment. Financial market instability can also have a nationwide wealth effect, reducing consumption expenditures as consumers become more cautious. Recent increases in employment have been outpacing growth in the local labor force. The board expects that the impact of these tighter labor markets will become more manifest over the next months. More and more, we are feeling the effects of interconnectedness among the world's economies.
Slowed growth appears to lie ahead for Massachusetts, especially in manufacturing industries.
The financial services sector may be victimized by the current flux in the world's financial markets, but this is not a foregone conclusion. The real results remain to be seen.