Massachusetts employers now fear economic uncertainty over housing cost

By the Editorial Team · Thursday, June 25, 2026

Massachusetts employers are shifting their primary concerns from housing costs to inflation, economic uncertainty, and federal policy changes, according to the Massachusetts Business Roundtable’s latest survey. This change is leading many companies to cautiously expand entry-level hiring, increase salaries to retain talent, and recruit more workers from outside the state due to rising local costs.

Massachusetts employers are increasingly concerned about economic and geopolitical uncertainty, eclipsing previous worries centered primarily on the region’s high housing costs. This shift in priorities emerged from the latest annual survey of the Massachusetts Business Roundtable, which represents nearly 100 mid-size and large companies across the state.

The survey, conducted by McKinsey & Co. with a majority of the Roundtable’s members participating, highlights inflation, broader macroeconomic pressures, and changes in federal policies as the dominant challenges facing employers in 2024. Nearly all respondents anticipate these factors will negatively affect the state’s economic outlook in 2026.

Despite this shift, housing affordability remains a significant concern. Eighty percent of employers surveyed identified reducing housing costs as the most impactful step to improve Massachusetts’s economic competitiveness, rating it highest among nine focus areas. As a response, more than two-thirds of companies report increasing salaries as their primary approach to retaining talent.

Workforce expansion plans reflect cautious optimism mixed with strategic adjustments. Only 13 percent of employers intend to grow their Massachusetts-based workforce this year—a figure consistent with the previous year—while a quarter plan to hire employees outside the state. More than half expect their local operations to remain unchanged, and very few foresee workforce reductions.

Growth is concentrated largely in entry-level positions, with about one-third of employers expecting to add jobs at this level. Hiring for mid-career and executive roles appears more restrained. This trend aligns with evolving workplace models. While most Massachusetts Business Roundtable members have adopted hybrid work arrangements, some are requiring full in-person attendance. Nonetheless, the acceptance of remote work established during the COVID-19 pandemic has encouraged employers to look beyond Massachusetts when recruiting, particularly as retaining talent locally becomes costlier.

Jd Chesloff, chief executive of the Massachusetts Business Roundtable, noted that companies have grown more comfortable with out-of-state hiring since the pandemic. “If you’re going to keep people here, it costs more,” he said, underscoring the financial pressures influencing hiring strategies.

Overall, Massachusetts employers are navigating the interplay between persistent housing affordability challenges and a broader climate of economic uncertainty. While housing costs remain a critical barrier to long-term competitiveness, immediate concerns over inflation and federal policy changes now dominate strategic considerations across the state’s business community.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.