A new, eye-opening, analysis comparing Massachusetts’ competitiveness to other states is now available.
Once again, it highlights our world-class strengths in education, healthcare, and innovation.
But — also once again — the study cautions that “the state’s high costs of living and doing business are eroding our competitive edge, even before the changing federal policy landscape poses unique threats.”
That’s among the conclusions found in the Massachusetts Taxpayers Foundation second installment of its 2025 Competitiveness Index.
Among the good:
We’re smart: We rank No. 1 nationally in 8th-grade reading and 8th-grade math test scores. We’re also No. 1 in having the highest percentage of our population aged 25 and older with a bachelor's degree.
We’re productive: Massachusetts is ranked 2nd nationally in Gross State Product per capita, reflecting high economic productivity and workforce efficiency.
We’re still innovating: Massachusetts continues to rank 1st in venture capital funding despite a significant year-over-year decline in funding.
Not so good:
We’re expensive: The state has the highest infant childcare costs in the nation. We’re 45th in the country for housing cost burden. We dropped from 36th to 48th in healthcare costs for employers. Unemployment taxes are 38th worst.
We’re losing people: Massachusetts ranks 45th nationally in domestic migration, signaling continued loss of residents to other states, especially among young adults aged 26-35 (48th nationally).
We’ve stopped creating jobs: Private employment growth ranked 50th nationally.
We’re congested: Massachusetts has the 47th-longest commute time.
The report also notes that international migration is a clear competitive strength, 3rd best nationally. But, of course, those and the rest of the rankings don’t reflect the impacts of current federal policies.
There’s oodles more here, plus a poll exploring the public’s perception of our strengths and weaknesses, including this sobering statistic: 41 percent of residents age 18-29 plan to move within five years, largely driven by high living costs.
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