DEDHAM, Mass., Jan. 25, 2024 (GLOBE NEWSWIRE) -- The Massachusetts Technology Leadership Council (MTLC), the leading destination for technology companies in New England, released its State of the Technology Economy Report underlining the impact that the technology sector and its workers have on the Massachusetts economy. The 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.
“Massachusetts has been an epicenter for technology and innovation for decades. Our higher education institutions, world-class airport, welcoming business climate, and a bump factor that can only exist in a small hub,” said Sara Fraim CEO of MTLC. “But in a post-COVID world, with a complete lack of affordable housing, a broken transportation system, and a perception of being hard on business, we must step up and do more to keep our tech workers here.”
“Massachusetts is a leader in the US tech economy, but even leaders still have to work to stay competitive,” said Dr. Rachel Sederberg, Senior Economist at Lightcast. “Tech workers have a high degree of flexibility in how and where they do their jobs. All the key stakeholders in the Commonwealth's tech economy need to look at how they're going to find and develop the skilled workforce they need.”
The report can be downloaded at https://www.mtlc.co/the-mtlc-edge/state-of-the-ma-tech-economy-report/.
About The Massachusetts Technology Leadership Council
The Mass Technology Leadership Council (MTLC) is the leading destination for technology companies in New England. As the region’s largest technology association, MTLC is dedicated to convening leaders with diverse perspectives to solve pressing global challenges and boost economic growth in the area. Through its initiatives and programs, the organization cultivates essential relationships among executives and helps them unlock new avenues for growth as well as inspires and fosters the next generation of innovators. With hundreds of members and partners, MTLC creates a dynamic environment where ideas and inclusivity converge to drive transformative changes. To learn more, please visit www.mtlc.co.
About Lightcast
Lightcast provides trusted global labor market data, analytics, and expert guidance that empowers communities, corporations, and learning providers to make informed decisions and navigate the increasingly complex world of work. With a database of more than one billion job postings and career profiles, our team provides best-in-class customer service with robust data, clear analysis, and expert guidance on skills, jobs, and opportunities.
Headquartered in Boston, Massachusetts, and Moscow, Idaho, Lightcast is active in more than 30 countries and has offices in the United Kingdom, Canada, Italy, New Zealand, and India. The company is backed by global private equity leader KKR. For more, visit www.lightcast.io.
Contact: Sara Fraim, sara@mtlc.co
