The jobs are there in Massachusetts, but nobody seems to want them, says a new report, which shows there are twice as many job openings as unemployed people in the state.
The report, released Wednesday by the Massachusetts Taxpayers Foundation, lays out a grim economic outlook for the state, which is facing a contracting workforce driven by an aging population, declining birth rate and people choosing to move elsewhere at the fourth-highest rate in the country.
“Systemic changes to the economy since the pandemic affecting all sectors, combined with troubling demographic trends, are causing the state’s talent pipeline to contract,” said MTF President Eileen McAnneny.
“Policymakers must proactively work to reverse this trend by making Massachusetts a more affordable and competitive place to be in order to ensure the commonwealth’s future economic growth.”
In September, Massachusetts had 289,000 job openings and 129,000 people unemployed, suggesting a labor shortage of 160,000.
Massachusetts has lost 900,000 residents to other states since 1981, a trend that spiked at 46,000 in 2021, “as people took advantage of remote work or labor shortages in other states to find a better quality of life,” the report stated.
The number of work-aged residents 20-64 in the Bay State declined by 50,000 since 2018, when that population peaked at 4.18 million, and is projected to fall by another 120,000 by 2030, the report said.
While residents are fleeing Massachusetts, demographic data suggests they’re not leaving New England, as the overall population of the region’s five other states grew by 40,000.
Further eroding the state’s labor force is its aging population and low birth rate, the report said.
The number of Massachusetts residents aged 65 and older is projected to encompass 22% of its population by 2030, outpacing the projected U.S. rate, the report said. In the short-term, many older residents are choosing to retire earlier than planned, due to the effects of the pandemic.
Births have fallen by nearly 30% since 1990, a trend that spiked during the pandemic. Deaths are projected to outpace births by the end of the decade, resulting in a negative population growth.
In past decades, Massachusetts was able to make up for its low birth rates and mass exodus of residents with its influx of international immigration, which kept its population and economy growing, the report said.
However, international migration dropped during the pandemic, by 75% compared to 2017.
The state must act aggressively to improve its economic outlook and remain globally competitive over the next few years, the report states.
It must reduce the high cost of housing and improve reliability of transportation options; analyze how well investments in education, workforce training and reskilling are preparing people for employment; and provide incentives for students, professionals and retirees to “build their future in Massachusetts.”
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
