Massachusetts still performs well on some measures tied to a strong economy, including wages and productivity.
But a new competitiveness scorecard suggests that for many residents and employers, the day-to-day picture is far less encouraging.
Here's what to know
The Boston Globe reported that in the Massachusetts Taxpayers Foundation's 2026 competitiveness scorecard, the commonwealth again ranked near the bottom among states on job growth, out-migration, commute times, and the costs of energy, child care, and employer-paid health insurance.
The report from the business-backed group also showed setbacks in areas in which the state had previously ranked better. After unemployment rose, Massachusetts fell to 43rd, and its labor force growth ranking dropped from 10th to 39th, in part because immigration declined.
Even so, the Globe said Massachusetts continued to post strong results in several longstanding areas of advantage, ranking No. 2 in economic productivity, No. 3 in average weekly wages, and No. 2 in venture capital investment, while also moving into the top 10 for low poverty rates.
Doug Howgate, president of the MTF, said that split helps explain why the state's traditional advantages are not enough on their own.
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"Turning the ship is a slow process," he told the Globe. "We are not going to lose our strengths overnight. At the same time, the work being done on things such as housing costs, energy costs, and commute times is nowhere near finished."
More background
The data suggests Massachusetts is not only expensive, but also ceding ground to faster-growing competitors. Florida, North Carolina, and Texas still trailed Massachusetts in per-capita economic output, but their gains over one- and five-year periods were faster, as the Globe noted.
Other figures in the report pointed the same way. Venture capital investment in Massachusetts rose 7%, while Florida, New York, California, and Texas each posted gains of more than 50%. International student enrollment also grew more slowly in Massachusetts than in Texas.
Federal policy is adding pressure as well, the Globe said. The report pointed to immigration restrictions and slower growth in international student enrollment, both of which could undercut the state's workforce pipeline and put added strain on college finances.
What's being done?
The scorecard does not offer a simple solution, but it does lay out several policy changes business leaders want state officials to pursue. The Globe reported those include lowering the estate tax, scaling back employer payments into the unemployment insurance fund, and promoting more housing production in downtown areas.
The group also urged support for research institutions facing pressure from federal funding cuts. Massachusetts receives more National Institutes of Health grant money per capita than any other state, and the report said that funding fell from its 2023 peak.
MTF also called for a rigorous statewide high school graduation standard to help protect one of the state's longstanding strengths, its education system.
The Globe's writer, Larry Edelman, suggested it's time for Massachusetts to take a closer look.
"Ideas like these should be getting more serious attention from state and local leaders," he concluded. "I know we can do better."
Where can I learn more?
Amid this economic picture, Massachusetts is also grappling with how best to address initiatives like controversial data centers and the state's clean energy goals.
• The state is expanding new solar incentives as federal tax credits face uncertainty.
• In Westfield, residents are fighting a $4 billion data center amid infrastructure worries.
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