Worcester Business Journal

June 16, 2025-Midyear Economic Forecast

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wbjournal.com | June 16, 2025 | Worcester Business Journal 21 BY JORGO GUSHI Special to WBJ E very fall and spring, I read through dozens of scholarship applications from students at Quinsig- amond Community College. I've done it for years now, and it's always humbling. e stories I read aren't just about GPA or course loads. ey're about students working two jobs, caring for family mem- bers, or recovering from setbacks that would make most people quit. One scholarship applicant was an immigrant living with and caring for his grandparents, both in their late 80s and early 90s, who speak no English. He was working two jobs just to keep the household going. ese are not unusual cases; they're the heartbeat of our campuses. at's why this moment feels so heavy. e Trump Administration's push to dismantle the U.S. Department of Education and roll back federal stu- dent aid isn't just policy business. It's personal, especially for students at community colleges. In May, the U.S. House advanced legislation to dramatically limit Pell Grant eligibility. Students taking fewer than 7.5 credits would lose access entirely, and students enrolled in 12 credits, which has long been considered full time, would only receive 80% of their Pell award. ese changes hit hard. Community colleges serve more low-income, first-generation, and immigrant students than any other part of the system. For these students, losing aid isn't a speed bump. It's a wall. When public support fades, philanthropy has to lead. Not just by writing checks. And not just in boardrooms. But out loud, in public, and with urgency. Foundations, donors, and institutions have a decision to make. Will we step in when others pull back? Will we advocate when access is being restricted? Will we defend the mission of public education, even when it's uncomfortable? is is not a drill. We are already seeing programs cut. Philanthropy can't afford to stay neutral. We need to keep funding scholarships. We need to support food pantries, academic coaches, and mental health services to help students stay enrolled. We need to speak up. at means writing op-eds. Showing up to public hearings. Calling elected officials. e future of public higher ed doesn't just depend on what happens in the classroom. It depends on who gets to be in the classroom at all. If we let politics decide who gets help, we've already lost sight of what this work is for. Community colleges are built for possibility. But pos- sibility doesn't pay the bills. It needs infrastructure. And it needs people willing to fight for it. Jorgo Gushi is the president of the Quinsigamond Community College Foundation. When federal support shrinks, philanthropy must lead e pessimistic economy U Mass Chan Medical School furloughs and lays off 200 employees. Greif closes the last paper mill in Fitchburg, letting go of 71 employees. Worcester Polytechnic Institute tightens its belt and lays off 24. UMass Memorial Health pauses hiring of all non-clinical staff. The Making Opportunity Count nonprofit closes two shelters and lays off 20 staff. Clark University will streamline its degree programs and lay off up to 30% of its faculty over the next two years. Central Massachusetts business headlines in the last four months have not been kind to employers or employees. The news hasn't all been bad, but it's easy to see why WBJ readers were particularly pessimistic in the 2025 Midyear Economic Forecast survey conducted from May 27 to June 18. Of the respondents, 34% said the Central Massachusetts economy has performed worse than expected since the start of the year (vs. 23% who said better than expected); 50% said the U.S. economy will decline during the rest of the year, along with the 45% who predicted the same decline is coming for the region's economy this year. All these figures reveal a pessimism in the local business community that didn't show up in WBJ's 2024 midyear and end-of-year surveys. See the full results of the Midyear Economic Forecast survey starting on page 12. The pessimism from our reader survey mirrors the Massachusetts Business Confidence Index, which tumbled from optimistic territory in January and has had a firmly pessimistic economic outlook for the past three months, according to the Associated Industries of Massachusetts, which compiles the index. The main concerns employers expressed to AIM were ongoing uncertainty around tariffs, the drastic overhaul of the federal government, and attacks against the immigrant workforce. e uncertainty caused by these major national policy changes is exacerbating long- held challenges among major institutions and industries in Central Massachusetts. e higher education industry has been suffering through a demographic downshi in the number of high school graduates, so significant cuts in their research funding and targeting of international students is putting further pressure on colleges and universities. e healthcare industry has been facing multiple crises coming out of COVID-19, and the situation has only worsened. More than anything, businesses crave consistency, whether it comes during crises or boom times, and the first half of 2025 has been marked by tumult and upheaval. With constantly shiing sands in federal funding, trade and immigration, it's no wonder so many Central Massachusetts business leaders are feeling uncertain about the near term. The Worcester Business Journal welcomes letters to the editor and commentary submissions. Please send submissions to Brad Kane, editor, at bkane@wbjournal.com. W W Jorgo Gushi

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