Does a new downtown Worcester have potential through a mix of commercial and residential development?

If some of the recent successes of Providence and Lowell can be imitated, then the answer to that question is yes.

A new report on Worcester's economy paints a picture of a city becoming more residential and more centered on service industries like health care and education.

"Benchmarking Economic Development in Worcester: 2012," by the Worcester Regional Research Bureau finds that the service sector represents 90 percent of jobs in the city and 85 percent in Worcester County.

Should the city require that local labor be used on major construction projects? This question was raised in a Telegram & Gazette article in October about the new St. Vincent Hospital cancer center and during the debate leading up to last month's municipal elections, with several candidates pledging to push for jobs for city residents.

A new study by the Worcester Regional Research Bureau finds that health insurance cost-sharing arrangements that were part of union contract agreements settled earlier this year in the city saved $9.1 million for the public schools and $4.5 million for other municipal departments.

The Worcester Regional Research Bureau announced a new partnership with Assumption College that will result in the WRRB moving from the Mechanics Hall building on Main Street to the college's campus on Salisbury Street.

An annual report from the Worcester Regional Research Bureau found that the occupancy rate for office space in downtown Worcester is 79 percent, a statistically insignificant change from last year's 81 percent, but lower than in 2006, when it stood at 89 percent.

Massachusetts health reform has been successful in increasing the number of insured residents in the commonwealth, top officials of the state's health care industry agree.

The next major challenge: controlling health care costs.

The primary focus of Worcester Mayor Joseph O'Brien's Task Force on Job Growth and Business Retention is seeking ways to improve the city's economic viability. Many constructive proposals were recommended and the mayor should get much credit for his vision, and for understanding that economic growth means a strong commercial industrial tax base that creates jobs, along with a stable mix of residential properties and city services.

Ratings agencies say they are closely watching the credit-worthiness of cities and towns across Massachusetts and other states after a recent historic downgrade of the U.S. government's credit rating.

A panel of retirement-benefit experts gathered in Worcester this morning concurred that the public pension system in Massachusetts is unsustainable, but fixable. "We're not Wisconsin or New Jersey, but the fact is we are wrestling with the same issues," said David Luberoff, executive director of the Rappaport Institute for Greater Boston at Harvard University.