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Q: What drives Boston's economy? ( Answered 5 out of 5 stars,   0 Comments )
Subject: What drives Boston's economy?
Category: Business and Money
Asked by: shikibobo-ga
List Price: $20.00
Posted: 20 Oct 2004 09:43 PDT
Expires: 19 Nov 2004 08:43 PST
Question ID: 417588
Right of first refusal to googlenut-ga.

Request for Question Clarification by googlenut-ga on 20 Oct 2004 12:04 PDT
Hello again shikibobo-ga!

Thank you for the questions.  I'll start working on them this evening.


Clarification of Question by shikibobo-ga on 20 Oct 2004 13:36 PDT
Great! Would like all 4 by midday Monday if possible.

Clarification of Question by shikibobo-ga on 20 Oct 2004 14:48 PDT
googlenut - Please do Boston last.

Request for Question Clarification by googlenut-ga on 20 Oct 2004 18:00 PDT
O.K. I'll do Boston last.  I believe I can get them all done by Sunday night.

Subject: Re: What drives Boston's economy?
Answered By: googlenut-ga on 23 Oct 2004 22:39 PDT
Rated:5 out of 5 stars
Hello shikibobo-ga,

Boston?s economy is driven largely by the health care, education and
financial sectors.  An estimated 107,000 people in Boston are employed
in health services.  Massachusetts General Hospital is the largest
private employer with more than 19,000 employees. Approximately 78,000
are employed in the finance and insurance sector.

Boston also has more than 79,000 state and federal government
employees. The professional, scientific, and technical services sector
(including legal services, accounting, tax preparation, bookkeeping,
architectural, engineering, design, and related, computer systems
design and related services, management, scientific, and technical,
scientific research and development services) employs nearly 67,000.


City of Boston Office of Budget Management
The FY05 Adopted Budget by cabinet
Boston?s People and Economy
?The Role of Higher Education, Health Care, and Financial Services

Higher education, health care, and financial services play a major
role in Boston?s economy. An examination of Boston?s 36 largest
private employers shows 27 are involved in these growing sectors.

Many of the nations finest research and teaching hospitals are located
in Boston, including Massachusetts General Hospital, Brigham and
Women?s Hospital, Beth Israel/Deaconess Hospital, Boston Medical
Center, New England Medical Center and Children?s Hospital, as well as
numerous community-based health centers. In total there are 22
inpatient hospitals in the City. The City is also home to the medical
and dental schools of Harvard University, Tufts University and
Boston University. In 2003, there were an estimated 107,000 people
employed in health services in the City.

Boston also hosts 34 institutions of higher education. Included among
the City?s colleges and universities are some of the finest
educational institutions in the country, including Boston College,
Boston University, and Northeastern University.

These institutions of higher education have a major impact on the
City?s economy. Boston?s colleges and universities enrolled
approximately 137,000 students in the fall of 2002. Because many of
these students remain in Boston after graduation, Boston?s educational
institutions are a major source of new highly skilled professionals
for the City?s work force. Boston?s colleges and universities add to
the economy in other ways as well. From 1991 through 1998, over $300
million of large construction projects at educational institutions in
Boston were completed.

Many of the country?s leading financial services firms are located in
Boston, including Fidelity Investments, John Hancock Mutual Life
Insurance Company, Putnam Investments, and State Street Bank & Trust
Company. The City also has the distinction of being the birthplace of
the mutual fund industry. In 2002, there were an estimated 102,000
people employed in the financial services, insurance, and real estate
industries in the City.?

(See page 3)

Massachusetts Division of Career Services and the Division of
Unemployment Assistance
Regional LMI Profile
Summer 2004
(See Page 18, ?Boston Workforce Area Employment by Industry (NAICS)
4th Quarter 2002 vs. 2003?)

City Of Boston, Boston Redevelopment Authority
The Boston Economy: Turning The Corner 2004 
?The economy of the Boston metropolitan area primarily rests on high
technology, finance, professional and business services, defense, and
educational and medical institutions. The City?s economy is more
specialized in the financial, governmental, business and professional
services and educational and medical sectors than the suburban
economy, which is more specialized in high technology and the defense
industry. As used in this section, ?professional services? includes
business and professional services such as data processing,
bookkeeping, news syndicates, law, accounting, engineering,
advertising, and architecture. ?Non-professional business services?
includes building maintenance, security guards, duplicating services,

(See Page 12)

City of Boston Employment 2001 ? 2003
NAICS (North American Industry Classification System)
(Page 13)

The Boston Foundation
2002 Boston Indicators Report
Economy Overview
?In 2000, Boston had one of the strongest economies in the nation,
having made the successful transition from a manufacturing economy to
a knowledge-based one, with strength across diverse sectors ? real
estate, high tech, bio-tech, health care, and education. But by 2002,
in response to a national recession made worse by the tragic events of
9/11, Boston had experienced severe job losses in sectors that
previously had been its primary economic drivers.

But Boston is home to a number of ?recession resistant? sectors. Its
institutions of higher education ? 36 in the city and 74 in the region
? together enroll about 265,000 students each year, contributing
billions of dollars in purchases of goods and services and thousands
of jobs. In addition, Boston contains 22 hospitals, 16 of them
teaching hospitals. Despite the economic contraction, these sectors
continued to show strength.

Boston also contains a network of community health care centers and
community development corporations, the headquarters of major national
and international non-profit organizations, major cultural
institutions and museums, and a wealth of community-based non-profit
organizations. Boston?s highly developed and diverse non-profit sector
accounts for about 27% of Boston?s jobs.?

The Boston Foundation
2002 Boston Indicators Report
Employment by industry sector
?Boston?s diverse economy has strengths in the innovation sectors  ?
software & communications services; innovation services; postsecondary
education; diversified industrial support; financial services;
healthcare technology; textiles & apparel; computer and communications
hardware; and defense ? as well as tourism, the creative economy,
construction, and the non-profit sector.  These sectors offer a wide
range of jobs and advancement opportunities for people at all skill
levels. The financial services industry in Boston manages
institutional and individual investments for a global client base,
while Boston?s business, engineering, law, and architectural firms
export professional services all over the world.?

Boston Redevelopment Authority
The Largest Private Employers in Boston: 2001\Publications\/pdr_545.pdf
?- The three largest industries among these employers, in terms of
number of jobs, are: Health Care, F.I.R.E. (finance, insurance, and
real estate), and Higher Education.
- The 58 largest private employers in Boston account for 144,797 jobs
or about 24% of the total private sector employment in the city.
- The Health Care industry, and hospitals in particular, employs far
more people than any other sector in Boston.
- With 14,907 employees, Massachusetts General Hospital is Boston?s
largest private employer.?


?Employer                                     Employees
Massachusetts General Hospital                14,907
Fidelity Investments (FMR Corp.)              11,250
Beth Israel Deaconess Medical Center           8,568
Brigham and Women's Hospital                   8,421
Boston University                              8,297
Children's Hospital                            5,116
New England Medical Center                     5,077
John Hancock (Financial Ser. & Signature Ser.) 4,793
Boston Medical Center                          4,650
Harvard (Business and Medical Schools)         4,557
State Street Corp.                             4,184
Boston College                                 3,882
Northeastern University                        3,751
Gillette Company                               3,566
Nstar (formerly Boston Edison)                 3,298?

Massachusetts General Hospital (MGH)
?The MGH is the largest nongovernment employer in the city of Boston,
with more than 19,000 employees, including a nursing staff of 2,900.
In addition, its 3,600-member medical staff includes physicians,
dentists, psychologists, podiatrists, residents and fellows.?

Massachusetts Alliance for Economic Development (MAED)
Greater Boston
?Diverse Economic Base
The region's economy is concentrated into several industry segments of
interrelated companies and institutions, including:

Financial Services: Both new and established businesses in Greater
Boston benefit from Boston's expertise in the venture capital
industry, mutual fund business, and institutional investing.

Information Technology: The region benefits from a strong presence of
company headquarters, research, and manufacturing facilities in a
diverse group of industries including computers, software,
peripherals, information services, communications, and electronics.

Health Care: Greater Boston is the nation's largest center of health
research and is one of the premier patient-care centers in the world.
Teaching hospitals, such as Brigham & Women's Hospital, Children's
Hospital, Dana-Farber Cancer Institute, and Massachusetts General
Hospital, serve as training grounds, research centers, and important
sources of innovative technologies.

Manufacturing: The manufacturing base in Greater Boston is
concentrated in instruments, industrial machinery, electronics, and
printing and publishing.

Tourism: Greater Boston is host to conventioneers, business travelers,
and vacationers, who are attracted by the region's business
opportunities, scenery and rich history.?


The Association of Independent Colleges and Universities in Massachusetts (AICUM)
Engines of Economic Growth: The Economic Impact of Boston's Eight
Research Universities on the Metropolitan Boston Area
?"Engines of Economic Growth" is a detailed report on the economic and
social impact in 2000 and 2002 of Boston College, Boston University,
Brandeis University, Harvard University, Massachusetts Institute of
Technology, Northeastern University, Tufts University and University
of Massachusetts Boston.?

The Association of Independent Colleges and Universities in Massachusetts (AICUM)
?Engines of Economic Growth
The Economic Impact of Boston?s Eight Research Universities on the
Metropolitan Boston Area?
?A Stable Foundation
While companies in the private sector come and go, the universities
remain a stable base in their communities. The eight universities
employed 50,750 people in 2002, slightly more than Greater Boston?s
financial services industry. While many industries have downsized, the
universities have added 2,000 more employees to their payrolls in the
last two years. (Figure 3)

The universities and their affiliated hospitals make up the two
sectors of the economy that have added jobs in the current downturn.
Four of the universities, plus five affiliated medical centers
employing 51,800 people, are among the top 25 employers in
Massachusetts. In addition, four companies founded by graduates of the
universities are also among the top 25 employers. The combined 2002
payroll of the eight universities totaled more than $2.5 billion.
Approximately $2.2 billion was paid to residents of the Boston
metropolitan area. That personal income, an average of more than
$51,000 per employee, in turn, became revenue for state and local tax
collectors of income tax, property tax, excise tax and other taxes,
and revenue for local businesses. Massachusetts? annual income tax
revenue from university employees is estimated at more than $115

(See Page 7)

For the full report see:

The Association of Independent Colleges and Universities in Massachusetts (AICUM)
?Engines of Economic Growth
The Economic Impact of Boston?s Eight Research Universities on the
Metropolitan Boston Area?

Tufts University
Boston?s Economic Engines: 8 Research Universities
?Located within a nine-mile radius of the state capitol, Boston?s
eight research universities serve as one of the area?s most important
economic powerhouses, according to a newly released economic impact
report. Tufts and its fellow institutions, reported President Lawrence
S. Bacow, infuse billions into the local economy and collectively
employ more people than Greater Boston?s financial services industry.


?Student spending for food, entertainment and transportation exceeds
$850 million annually and visitors to the campuses help drive the
local economy as well.

?We estimate that the annual commencement exercises of our eight
institutions draw more people to Boston than the Superbowl does to its
host city,? Bacow said. ?And we do it year in and year out.??


Other references:

U.S. Census Bureau 
The 2003 American Community Survey  
Population and Housing Profile:  Boston city, Massachusetts

U.S. Census Bureau 
The 2003 American Community Survey  
Boston city

U.S. Department of Labor
Bureau of Labor Statistics  
Boston, MA Economy at a Glance


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