New Report Warns: Massachusetts Facing Alarming Decline in Private Sector Employment Growth
BOSTON — While nearly every state has expanded private sector employment since the onset of the COVID-19 pandemic, Massachusetts is an outlier in experiencing a net decline in private sector job growth, posing significant risks to the state’s economic health and long-term prosperity, according to a new policy brief published by Pioneer Institute.
“Massachusetts can no longer afford to rest on its laurels,” said Aidan Enright author of Massachusetts at Risk: The Alarming Decline of Private Sector Employment Growth. “To secure a prosperous future, we need bold, decisive action to create an economic environment that allows both individuals and businesses to thrive.”
According to data from the Bureau of Labor Statistics, Massachusetts’ private sector employment has contracted by 0.74 percent since January 2020, the third-slowest private sector employment growth in the nation. In contrast, competitor states such as Florida, North Carolina, and Texas have each seen private sector job growth in excess of 10 percent.
The report highlights that Massachusetts is also grappling with employment stagnation or decline in several key industries, including information, transportation, and manufacturing. Notably, employment in professional, scientific, and technical services declined by nearly 3 percent since 2022.
“The nation is growing jobs, but we are losing them,” said Jim Stergios, Pioneer Institute’s executive director. “There is no clearer—and no more troubling—economic signal.”
This trend has far-reaching implications, including rising economic inequality, reduced opportunities for residents, diminished investment and innovation, and an increasing outmigration of talent and businesses to states with stronger job markets and lower costs of living.
The author calls for immediate action from state leaders to make Massachusetts more economically competitive through tax reform, regulatory improvements, strategic workforce investments, and aggressive housing development policies. The report cautions that failure to act could lead to prolonged economic underperformance and a diminished quality of life for Bay State residents.
