There is still a lot of economic uncertainty across the country, and the globe, in the midst of the COVID-19 pandemic. Every day seems to bring new bankruptcy and business closure announcements. Even if there were a miraculous turn-around in the second half of this year, our economy in Massachusetts has already lost a lot in 2020.
But how do things look in the long-term?
The chart below was compiled from Boston Business Journal data, identifying the 20 largest employers in Massachusetts. While this is just a snippet of the overall picture, it shows the diversity of our economy – a mix of health care, higher education, technology and other industries.
To be sure, some of the businesses on this list are facing challenges and others may join them as the pandemic wears on.
Some of the hardest hit industries nationwide have been the Accommodation and Food Services industry and the Retail Trade industry. According to a recent report by the Boston Planning & Development Agency, those industries made up only 8.0% and 4.6%, respectively, of the State’s total jobs. Here, as elsewhere, those industries will continue to face headwinds in the coming months. However, Boston – and Massachusetts – seem well-positioned to persevere.
From a real estate perspective, it is important to understand who these large employers are and how they are faring. News from these companies can impact the real estate market positively (growth/expansion means more jobs, commercial space occupied and generally more demand for housing) or negatively (layoffs/closures lead to fewer jobs, commercial space vacancy and negative pressure on the housing market).