By Galen Moore, Boston Business Journal

BOSTON (CBS) – Massachusetts is creating fewer businesses, and those businesses that are being created here are dramatically shrinking in size, according to a study, titled “The Big Shrink,” published by the Pioneer Institute, a Boston-based public policy think tank.

Massachusetts is among a handful of states that saw no new net job growth from 1990 through 2007, the report stated – before the great recession hit, a period in which the rest of the country experienced significant job growth.

Moreover, from 2003 to 2007, while the rest of the country saw a 26.6 percent job gain, Massachusetts lost 0.3 percent of its jobs.

The researchers laid responsibility for that counter-trend on the shrinking size of Mass. firms, noting the average company size is down in all industries except manufacturing during the 17-year period.

Lisa van der Pool of the Boston Business Journal reports

In 1990, the average firm in Massachusetts employed 16 people.

As of 2007, the average company here had just 9.7 workers, a 39-percent reduction Pioneer researchers called “staggering.”

The number of firms was growing – but a “significant portion” of new firms were in the single/non-employer category, the study reported, tracking 174-percent growth in that category.

Meanwhile, the number of large firms (companies with more than 100 employees) has remained stagnant, retreating to 1990 levels by 2007.

Download the full report at the Pioneer Institute’s web site.

  1. emom says:

    Are we so surprised by the slow growth of jobs, Think of those that lost their jobs, Sure some where seasonal workers, BUT that is still a smaller amount of lost jobs. Christmas help last maybe 3 months, with a small percentage Hired as permanent full time and part time. The summer job growth is only for 3 months and then there is little job potential from that as most are school and college kids. Corporate job growth is dwindling due to technology , plus they will have a employee work harder doing much more work so as to eliminate additional employees,, It’s not just manufactures working folks harder, The average office worker has a quota to meet on a daily basic if not an hourly basic. Manufactures use to be a job where the more you made manufactured or produced the more you get paid.. HOWEVER times have significantly changed… Now If you PUSH your employees to produce, make or manufacture more it results in the need for FEWER employees,,, Try asking some of these workers,,, NOW this method has been utilized in the office setting as well as retail.. Ask anyone in almost any job how much MORE work they have to do in a day , week , month and hour.. Its amazing we do not have more and more folks having break downs. Stress is on the rise as is cost… Office workers have to handle more claims, process more bills, enter more info into a system, retail is a bit different, its about HOW fast you can ring up a sale, keeping the line moving, getting no breaks, staying on top of stock, if you are not moving and working you are expendable.. In retail this may work, however in the office setting this is more stressful.. You never get that break, you get piles and piles more to work with, you get over whelmed, and back logged,, Try getting info from some of these companies and you have to wait a few days to weeks, before you get results, this brings up that major problem,,,,, POOR CUSTOMER SERVICE… I have worked all kinds of job and have had to deal with these same problems,,, I have worked tell a marketing where you had to make so many sales in a day or week, talk about stress, then manufacturing, where QUOTA was a big thing,,, instead of getting you help they push you to the brink to get it done,, ahhh but by them MAKING you do this it shows an employer that anyone can handle this amount of work so the need to HIRE extra personal is unnecessary…. Sneaky right… Then I worked retail, where not only did I have to order special orders but deal with customers as well and there you had to make a certain amount of sales, talk about pressure, then I worked in an office and over the years they had increased the quota per grade levels to input info from bills into a system,,, Some resorted to short cuts which in the end resulted in a do over for someone else.. Totally uncalled for BUT a practice of many offices.. As soon as there was an over flow of claims they pushed us into doing more all for a bonus which in the end amounted to nothing after all the bonus taxes had been taken out, wasn’t worth the hassle and the stress,, BUT it created the reason to yet again RAISE production levels of imputing claims.. REALLY NOW. By doing this there was no need to higher additional employees. SO if jobs have dwindled blame it in the greed of employers wanting us the employees do way more than in some cases is humanly possible,,, We don’t get more in the end for it,, if you get over time, somewhere along the line you will loose something maybe a few hours less to work ,, but you loose something regardless, And lets not forget the loss of jobs over sea‘s. Blame some of this on technology,,, soon we will have less jobs and our future will become bleaker. Because some day technology will be the employee and they will have no smile with there service, they will just go on to the next customer….

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