Industrial Structure
Consistent with the national trend, in the past twenty years, Hampden County’s industrial structure has experienced a dramatic change shifting from a manufacturing-based to a service-based economy. Between 1991 and 1995, Hampden County saw its manufacturing employment decline by 4,800 jobs or about 13 percent. At the same time, the area’s service industry added a substantial number of new jobs. In 1991, the Hampden County service industry employed about 47,700 workers, but by 2000 this number had increased to 60,900, a rise of 13,200 jobs or about 28 percent. Hampden County also lost a considerable number of jobs in the Finance, Insurance and Real Estate industry (FIRE).
During the overall economic expansion of the 1990’s, FIRE employment in the region declined by 1,600 jobs or about 12 percent. Consequently, much of the gain generated by the rapid growth in the services sector during the expansion of the 1990’s was negated through large losses in Manufacturing and FIRE sector employment. Although the Manufacturing and FIRE sectors have lost jobs in the past decade, both remain critical industries as they produce average annual wages that are among the highest for industry sectors.
When job growth in the last decade is further analyzed, it appears that new job creation is heavily concentrated in a few sectors. Health Services led all sectors in creating new employment opportunities. Total employment in Health Services rose from 20,600 in 1991 to 24,400 by 2000, a rise of 3,800 jobs over the period. Business Services generated an additional 2,900 jobs while Eating and Drinking Establishments added 2,100 positions.
The Massachusetts Division of Employment and Training reports that in 2000, Hampden County had 204,435 jobs. This represents 6.2 percent of total statewide employment. The five largest industries in Hampden County, based on 2000 averages, were:
- Manufacturing: 31,172 employed or 15.3 percent of Hampden County total employment
- Health and Social Assistance: 30,811 employed or 15.1 percent of Hampden County total employment
- Retail Trade: 25,603 employed or 12.5 percent of Hampden County total employment
- Accommodation and Food Service: 14,013 employed or 6.9 percent of Hampden County total employment
- Finance and Insurance: 9,849 employed or 4.8 percent of the Hampden County total employment
Slightly more than half of the employment in Hampden County is in these five industries.