The U.S. Census of 2000 reported 35,080 people in Chelsea, with a household median income of $30,161, lower than the national average income of $41,994. In the early 1990s, Chelsea underwent a significant economic decline, losing much of its employment base to nearby Boston. The exodus was particularly among younger workers.
In late 1991, the city had to rely on assistance from the State of Massachusetts. Voters helped to steady the ship the following year with a charter referendum that changed the form of government to a city manager model. Under the charter, citizens have broad access to the government, holding it in strict accountability. For example, under the charter, the City is held accountable for maintaining an open operating budget and must provide strict financial forecasting and capital planning, or officials face voter recall initiatives. Subsequently, Chelsea recovered from its tailspin. Today, Chelsea's top employers include:
- Massachusetts General Hospital
- Signature Breads, Inc.
- Roca, Inc.
- Metropolitan Credit Union
- North Suffolk Mental Health
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