Massachusetts Loses About 182,000 Residents to Domestic Out-Migration, Raising Questions About Workforce and Cost Pressures
Massachusetts lost about 182,000 residents to domestic out-migration between April 2020 and July 2025, driven largely by high living costs; the exodus raises pressing workforce, economic and fiscal concerns for the Commonwealth’s long-term prosperity.
- Pioneer Institute analysis finds a net domestic out-migration of about 182,000 people from April 2020 to July 2025, roughly one-and-a-half cities the size of Cambridge — Pioneer Institute.
- Younger adults ages 26–34 are the most likely to leave, threatening future economic activity, entrepreneurship and tax revenue — Pioneer Institute.
- International migration added about 230,000 residents from 2022–2024 but slowed sharply in 2025, reducing its offset to domestic losses — see UMass Donahue Institute and Commonwealth Beacon.
- Private-sector employment remains below January 2020 levels by about 18,000 jobs, while the statewide unemployment rose to 4.8% as of December — Pioneer Institute.
What the data show
An analysis by the Pioneer Institute estimates Massachusetts lost roughly 182,000 residents to domestic out-migration between April 2020 and July 2025. The institute characterizes the pattern as “a structural phenomenon” that began before the pandemic and persisted afterward.
Census-based estimates compiled by the UMass Donahue Institute show annual domestic net losses of roughly -33,340 in 2025, -19,195 in 2024, and a pandemic low of -47,954 in 2022. Long-term averages since 2013 are near 27,400–27,700 emigrants per year, according to state summaries (Massachusetts housing overview).
Who is leaving and why
Age profile: Losses concentrate among younger adults, primarily ages 26 to 34. These departures often involve people in early career stages; losing this cohort can lower future labor supply, entrepreneurship and household formation.
Cost pressures: Analysts point repeatedly to high housing costs, rising child care and health care bills, and education costs as major push factors. The Pioneer Institute and others note that while remote work increased mobility options, it did not create the long-term trend — Pioneer Institute.
International migration and temporary offsets
International migration helped mask domestic losses between 2022 and 2024. Net international migration peaked in 2024 at about 77,957, adding roughly 230,000 residents across 2022–2024 and helping push the state’s labor force to about 3.9 million in 2024 — the largest year-over-year boost since 2018, according to the UMass Donahue Institute and reporting by the Commonwealth Beacon.
Federal policy changes and a national slowdown in immigration reduced flows in 2025; Massachusetts’ net international migration fell to roughly 40,000 that year. Combining domestic and international flows, the state nearly broke even in 2025 with a small net gain of about 6,900 — highlighting the vulnerability of the labor-force buffer that immigration provided.
Employment trends and the labor market
Private-sector employment in Massachusetts remained below its January 2020 level by about 18,000 jobs (≈ -0.55%). By contrast, the U.S. private sector grew more than 5% over the same period, and fast-growing states such as Florida, North Carolina and Texas posted gains above 10% — a comparative gap that signals competitive challenges for hiring and growth (Pioneer Institute).
The statewide unemployment rate rose to 4.8% in December, up from a post-pandemic low of 3.2% in April 2023. That rate is higher than nearby New England states — Connecticut (4.2%), Rhode Island (4.3%), Maine (3.2%), New Hampshire (3.1%) and Vermont (2.6%) — per the Pioneer Institute analysis.
Data adjustments and methodology
Revised Census methodologies changed migration estimates for 2021–2024 and adjusted some prior figures upward, but the UMass Donahue Institute and state agencies state the broader picture remains: persistent net domestic losses. State reports and housing studies highlight long-running supply limits and affordability pressures as core drivers (Massachusetts housing overview).
What analysts say
The Pioneer Institute calls the trend structural:
“With domestic out-migration levels growing prior to the pandemic and remaining significantly elevated beyond it, it is clear out-migration is a structural phenomenon that is here to stay and not just a byproduct of remote work and the pandemic.”
Other experts emphasize taxes, regulation and housing policy as contributors to higher living costs and interstate migration. Meanwhile, immigration has been a major source of labor-force growth, but that buffer is sensitive to federal policy shifts (Commonwealth Beacon).
Implications for San Diego, California
How should San Diego read Massachusetts’ experience? The shifts in Massachusetts offer practical lessons for San Diego policymakers, employers and residents. Below are strategic implications and actions to consider.
- Talent competition and recruitment: Massachusetts out-migration opens opportunities for Sun Belt and West Coast regions to attract skilled workers. San Diego employers in biotech, health care and tech could pursue targeted recruitment of workers seeking lower housing costs or different tax environments.
- Housing supply and affordability: High living costs in Massachusetts highlight the need to expand housing supply, streamline approvals and support diverse housing types to retain workers and ease cost pressures in San Diego.
- Workforce planning: Early-career workers are leaving Massachusetts; San Diego should strengthen workforce training, apprenticeship programs and university partnerships to secure a steady pipeline for tech, life sciences and defense.
- Immigration and integration: Massachusetts’ labor-force gains were largely from international migration. San Diego can emphasize global talent attraction and integration policies (credential recognition, language support, housing assistance).
- Public services and fiscal impacts: Sustained out-migration can erode a tax base and raise per-resident service costs. Municipal leaders should monitor fiscal signals and adopt measures that support household formation and workforce participation.
- Child care and family costs: Analysts cite child care and family expenses as push factors. Investing in affordable child care and family supports can reduce churn and help retain residents.
