The economy is slowing, as it continues to be constrained by labor shortages. Inflationary pressures are present in labor and housing markets, and consumer spending is strong. Fed policy may keep inflation from getting out of hand in the short run. In the long run, however, Massachusetts needs to speed up the growth of its skilled labor force. Minorities and low-skilled workers, who until recently had been largely unaffected by the expansion, are now benefiting from tight labor markets.
Clayton-Matthews, Alan, "Economic Currents: The State of the State Economy" (2000). Public Policy and Public Affairs Faculty Publication Series. 23.
University of Massachusetts
Published in MassBenchmarks, Vol. 3, No. 1, pp. 4-9: http://www.massbenchmarks.org/publications/issues/vol3i1/3.pdf.