Indicator 1: Industry Sector Employment and Wages
How Does Massachusetts Perform?
Innovation economy employment grew faster than overall employment in 10 of the 15 LTS from 2016-2017. The fastest rates of growth were in Florida, where innovation economy and overall employment grew by 2.4% and 2.2% respectively. In Massachusetts, innovation economy employment grew 1.5%, while the state employment as a whole grew 1.3%. Scientific, Technical & Management Services and Business Services performed the best in terms of employment, growing 5.3% and 2.8% respectively. Overall, there has been a growing trend of jobs shifting from manufacturing sectors to service-oriented sectors. Multiple factors contribute to this, including outsourcing manufacturing to places with cheaper labor, as well as automation and the rising tech industry.
The Computer & Communications Hardware Sector experienced employment decline from 2016-2017 in 9 of the 15 LTS, including Massachusetts. Massachusetts saw three other sectors decline in employment from 2016-2017: Defense Manufacturing & Instrumentation, Advanced Materials, and Finance. Defense Manufacturing & Instrumentation has struggled with reduced federal funding, resulting from Department of Defense cost-cutting measures, and the winding down of major overseas deployments. Of the three sectors where Massachusetts saw declines, two of them also had declines nationally: Computer & Communications Hardware (-0.34%) and Defense Manufacturing & Instrumentation (-0.38%).
Wage growth has been particularly strong in Massachusetts Innovation Economy sectors since 2012. Three sectors had double digit wage growth over the period: Scientific, Technical & Management Services (16.9%), Biopharmaceuticals & Medical Devices (16.0%), and Financial Services (12.4%). Scientific, Technical & Management Services had the fastest wage growth and fastest employment growth, while Biopharmaceuticals & Medical Devices had the second fastest employment growth and second fastest wage growth.
Data Source for Indicator 1: Bureau of Labor Statistics (BLS) Quarterly Census of Employment and Wages (QCEW)