Life Sciences
The life-sciences cluster in Massachusetts has major strengths, but
competing states are currently better organized to support biotech
economic development. An analysis by the Mass Biotechnology Council (See
Attached) of 134 human-therapeutics companies (either based in
Massachusetts or with facilities here) demonstrates that the further one
goes down the value chain from research, the less likely companies are
to locate activity in the state. We need to extend the local
biotechnology industry from its strong base in research to activities
further down the value chain, such as development and manufacturing.
UI Rate Freeze The UI Trust Fund is projected to have over
$1.1 billion at the end of this year, and, if rates are frozen for 2008
- the fund balance will grow to nearly $1.4 billion - a very healthy
fund balance. For 2008 and the next several years, the forecast shows
marginal fluctuations in unemployment rates around the 2007 level -
nothing that would result in heavy outflows from the UI Trust Fund. UI
is not purely a cost to employers and a benefit to employees. The costs
of labor ultimately fall on labor. Employers initially pay for cost
increases such as higher UI rates, but these roll into the wage
structure over time.
Unnecessarily high UI rates benefit neither labor nor employers. High
rates do not increase UI benefits, nor make them more secure (no
eligible unemployed worker has ever lost benefits). But they do impose
costs on working people by reducing their paychecks, in two ways.
Directly, they raise employers' costs and reduce profits, making them
less willing and less able to raise wages. Indirectly, they weaken the
local economy and labor market, reducing the number of new (and
potentially of existing) jobs.
We now face an economic climate marked by a weak labor market and
significant financial pressure on households - both conditions that will
only be worsened by higher UI rates. The economy will be better off if
Massachusetts avoids increasing this burden unnecessarily.
The MetroWest Chamber urges members to contact state elected
officials immediately to urge them to act on UI rate freeze
bill now pending.
The MetroWest Chamber urges members to contact state elected
officials immediately to urge them to act on UI rate freeze
bill now pending.
Copyright 2008. All rights reserved.