From April 2020 through July 2025, Massachusetts experienced a net loss of approximately 182,000 residents to domestic outmigration — the equivalent of losing one-and-a-half Cambridges. While a recent surge in international immigration temporarily boosted labor force numbers, new research from Pioneer Institute shows that underlying demographic, workforce, and economic challenges continue to threaten the Commonwealth’s long-term competitiveness.
The Massachusetts Labor Force: Now and Beyond, authored by Aidan Enright, examines how domestic outmigration, an aging population, declining birth rates, and shifting federal immigration policy are converging to create serious economic headwinds for the state.
Top Takeaways
- Domestic Outmigration is a Structural Problem
The loss of 182,000 residents since 2020 signals deeper affordability and competitiveness challenges that cannot be offset indefinitely by net international migration.
- Private-Sector Recovery is Lagging
Massachusetts remains one of four states yet to recover to pre-pandemic private-sector employment levels while competitor states like Florida, Texas, and North Carolina continue to grow workers and firms.
- Immigration Drove the Recent Labor Force Rebound
The 2024 labor force increase was largely driven by international migration — a source of growth that is predicted to decline by nearly 90 percent from its peak in 2024 by 2026 and is likely not sustainable under tightening federal policy.
- Demographics Threaten the Future Talent Pipeline
Low birth rates, a shrinking youth population, and an aging workforce are reducing natural population growth and placing long-term strain on workforce supply.
- Federal Policy Changes Pose Outsized Risk
Cuts to research funding and tighter immigration rules could disproportionately impact Massachusetts given its reliance on higher education, research institutions, and international talent.
- The State Still Has Strong Foundations
Massachusetts ranks eighth nationally in labor force participation and leads the nation in educational attainment — strengths that can support renewal if paired with sound policy reforms.
Policy Recommendations
To secure a strong and sustainable workforce, the report urges Massachusetts to:
- Strengthen immigrant workforce integration programs
- Expand upskilling initiatives for essential and high-demand occupations
- Invest in vocational and technical education pathways
- Address structural competitiveness challenges driving domestic outmigration
Read the full report to understand the forces reshaping Massachusetts’ labor force — and what policymakers must do now to restore economic strength and long-term growth.
