Explore the impact that the technology sector and its workers have on the Massachusetts economy.
State of the MA Tech Economy Report
A Comprehensive Look at the State of the Technology Economy in Massachusetts
The State of the Technology Economy Report underlines the impact that the technology sector and its workers have on the Massachusetts economy. This report also looks at the demographic makeup of the technology sector, both benchmarking the state’s progress year over year as well as against other similar tech hubs.
MTLC commissioned this report from Lightcast, a leader in labor market analytics, to ensure all stakeholders in the region have the data to take the necessary actions for Massachusetts to remain a global tech hub. While there are many negative trends that must be addressed, there are strengths.
Despite media attention around layoffs, tech employment in Massachusetts is up, constituting 14% of the workforce, compared to 10% of the national average and higher than similar states. There is also data showing that remote work is having a positive impact on the tech workforce in the region resulting in a longer retention rate.
The report, however, highlights a number of challenges that must be addressed by both the public and private sector to keep the Commonwealth’s global position as a tech leader.
Key findings from the report show that:
- The tech industry in Massachusetts has experienced a decrease in diversity, shrinking by roughly 10% and trailing its peers and the national average.
- Tech workers contribute an average of 25% more to the Massachusetts’ economy than non-tech workers.
- A notable number of tech workers exited the Commonwealth, resulting in a net migration of approximately -2,000 tech professionals in 2022 – this equates to a loss of approximately $90 million that would otherwise flow back into the economy through the discretionary spending of those workers.
- Of the workers who leave Massachusetts for other states, 76.3 percent are between the ages of 20 and 40, likely exacerbating the challenge of having a more diverse workforce.