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High Unemployment Rates Sticking Around

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Heading into September, the outlook for recovery from pandemic safety measures continues to improve in Massachusetts. In particular, three key metrics from the Dept. of Public Health illustrate this fact:

  • The seven-day average of the positive test rate is at an all-time low of 1.4 percent. 

  • The three-day average of hospitalizations is 371, only 3 percent above the 359 low. 

  • The three-day average number of deaths attributed to the pandemic stands at 13.

However, there are still some clouds distinctly lacking in silver linings. 

For example, Massachusetts still has the highest unemployment rate in the country. And chipping away at the numbers has proven to be a challenge. 

  • 16,709 residents filed unemployment claims last week, up from about 13,000 last week.

  • 12,282 residents applied for Pandemic Unemployment Assistance benefits — a massive rise from 8,750 last week.

That being said, fiscally speaking, it turns out that the city of Boston is better off than most U.S. cities. A recent study estimated revenue shortfalls for 150 major U.S. cities. And authors of the study claim that Boston will experience the least severe drop in revenue.

According to a report by The New York Times, Boston is looking at a meager 2 to 4 percent decline for the fiscal year 2021. 

MBTA Facing potential $400 Million Budget Shortfall

Although an influx of federal funds is helping to stabilize public transportation, a massive reduction in the number of MBTA riders could result in a $400 million shortfall for the agency. That is according to an analysis by the Massachusetts Taxpayers Foundation. And that number assumes that fare revenue rebounds by 75 percent in the next year — which is highly speculative. 

Although some bus routes have seen a greater than 50 percent increase in ridership since springtime lows, most are still floundering around at a miserable 20 percent of previous ridership. Commuter rail trains are faring even worse.

The MBTA’s day-to-day budget is currently about $2.3 billion. And that figure is expected to grow slightly in the coming year. However, with the estimated drop in ridership, revenue is expected to barely top $2 billion.

The Boston Globe has a detailed report on this topic.

Rising Sea Levels Threaten $100 Billion In Essex County Real Estate

As if a global pandemic is not enough to make our collective heads spin, climate change and rising sea levels threaten to decimate some Mass. coastal communities. Massive flooding and beach erosion could conceivably wipe out more than $100 billion in real estate in Essex County alone. That is according to a recent report by a leading conservation group titled “State of the Coast” 

Of great concern are the county’s 50-plus miles of aging sea barriers. It’s estimated that upgrades to sea walls could run up a $88 million repair bill. 

The report also also warns that by 2030 more than 600 North Shore buildings could experience daily tidal flooding. And upwards of 7,000 waterfront buildings could see flooding should there be a 100-year-storm event. And with storms becoming more powerful due to climate change that possibility is certainly not out of the question. 

The ominous projections are based on a flood risk model developed by Bourne-based environmental consultancy firm, the Woods Hole Group.

To give some sense of the magnitude of the problem, according to its trustees, Crane Beach in Ipswich has lost the equivalent of 84 football fields of sand since the 1950s. And it’s estimated that coastal homes in Salisbury could be worth $200,000 to $300,000 more if not for more frequent tidal flooding.

The report covers 13 North Shore communities: Swampscott, Marblehead, Salem, Beverly, Manchester-by-the-Sea, Rockport, Gloucester, Essex, Ipswich, Newbury, Rowley, Newburyport, and Salisbury.

Boston.com has more on this story.

Offshore Wind Firms To Pay $33m To Lease New Bedford Terminal

The New Bedford Marine Commerce Terminal is set to become the primary staging and deployment base for the construction and installation of offshore wind projects being developed by Vineyard Wind and Mayflower Wind. 

According to South Coast Today, the lease agreements “commit the facility to full-time offshore wind work from 2023 into 2027 and are worth more than $32.5 million.”

Governor Charlie Baker had this to say about the development:

“These lease agreements with Vineyard Wind and Mayflower Wind are another major milestone for offshore wind in Massachusetts. With this announcement, the Commonwealth continues its national leadership on clean energy and ensures Massachusetts workers will benefit from the jobs and economic opportunities provided by this new industry.”

South Coast Today describes the terminal this way:

“The first port in North America specifically purpose-built to support the staging and installation of offshore wind components, the terminal has been engineered to sustain mobile crane and storage loads that rival the highest capacity ports in the world.”

According to Vineyard Wind CEO Lars T. Pedersen:

“Once construction begins, the Marine Commerce Terminal will become the birthplace of an entirely new industry, with jobs and opportunities for local residents that simply don’t exist today. We’re fortunate to have such great partners both locally in the City and Port of New Bedford and in the Baker-Polito Administration. We look forward to being a growing part of the community.”

And Michael Brown, President and CEO, Mayflower Wind says:

“Mayflower Wind would like to thank the commonwealth and City of New Bedford for their leadership and vision in establishing the New Bedford Marine Commerce Terminal. We look forward to creating thousands of good-paying jobs during the construction and installation of our project, anchored around this critical infrastructure investment.”

As we’ve been reporting over the past few months, in order to combat climate change, Massachusetts has set an ambitious net zero emissions target. Offshore wind is expected to play a key role in achieving that goal while creating an estimated 2,000 to 3,000 jobs over next 10 years. 

The new wind plants are expected to provide up to 1,600 megawatts of wind power to Massachusetts. 

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