MA Is Investing in Talent at a Critical Time

Governor Healey recently announced a $24 million investment in workforce and talent development in the Bay State, including funding for internships, employer training, apprenticeships, and career pathways in high-demand industries.

According to the latest federal employment data, that announcement couldn’t come soon enough.

Job Losses Extend Across Key Industries

For years, Massachusetts has led the country in innovation and life sciences, attracting some of the most ground-breaking biotech companies. This success is due, in part, to the state’s strong education pipeline. While we still boast some of the most innovative companies, there are some warning signs about the long-term health of this and other sectors of our economy.  

Over the past year, Massachusetts saw an overall decline in total private employment. While some industries, including utilities, entertainment, and health care, added jobs, losses dominated across several industries that play an important role in Massachusetts’ economy. 

Professional, scientific and technical services saw the largest decline, losing nearly 7,500 jobs over the past year. Manufacturing followed with about 4,000 jobs lost, while educational services shed more than 3,000 and finance and insurance lost roughly 1,500.

Unfortunately, the decline in professional, scientific and technical services is not surprising given recent trends in the state’s life sciences sector. MassBio’s latest industry report found that Massachusetts lost thousands of life sciences jobs in 2025, marking the industry’s first annual employment decline in more than two decades.

Massachusetts Continues to Trail Competitor States

While total private employment declined in the Commonwealth over the past year, the U.S. and competitor states including Florida, Texas, and North Carolina experienced growth.

The contrast is particularly important as Massachusetts competes with other states not only to retain workers and businesses, but attract new ones. That challenge has become particularly visible over the past year, as companies including Cape Cod Potato Chips, Zipcar, and several other biotech and manufacturing firms have moved their operations and accompanying jobs out of the Bay State. Many of the states gaining workers and investment have lower tax burdens and a lower overall cost of living, making them more attractive to both workers and their employers.

While the Commonwealth has long benefited from its highly educated workforce and strong innovation economy, those advantages only go so far if the people and businesses that drive them choose to grow elsewhere.

Conclusion

Massachusetts already has many of the ingredients that have made it an economic leader, and investing in the state’s workforce is an important step toward strengthening its competitive position.

However, workforce investments alone will not be enough to ensure long-term growth. To compete with other states, attract new investment, and create opportunities for workers, Massachusetts will also need to tackle its broader affordability challenges including a high tax burden and cost of living.