Massachusetts lost an estimated 182,000 residents to net domestic out-migration from 2020 through 2025, according to a new report from Pioneer Institute.

The report says recent labor force growth has masked deeper economic problems in the Commonwealth.

“The net loss of 182,000 residents to domestic outmigration is like losing one-and-a-half Cambridges,” Jim Stergios, executive director of Pioneer Institute, said in a press release. “When you pair that with the loss of private-sector jobs – particularly in professional, scientific, and technical fields – it's clear we have serious work to do to reverse a flagging economy.”

Massachusetts is one of only four states that have not recovered their pre-2020 private-sector job levels. Meanwhile, states such as Florida, Texas, and North Carolina have added workers and firms at a much faster pace.

Private-sector employment in Massachusetts remains below pre-pandemic levels. National private-sector employment has grown by more than 5 percent since January 2020. Massachusetts, by contrast, has lost about 18,000 private-sector jobs over that same period.

The state’s unemployment rate has also climbed. It rose from 3.2 percent in early 2023 to 4.8 percent by the end of 2025. That rate now exceeds every other New England state and stands above the national average.

Job openings have declined sharply. The ratio of unemployed workers to available jobs now exceeds one-to-one for the first time since the pandemic.

Massachusetts continues to boast the most educated workforce in the country. In 2024, 53.4 percent of residents age 25 and older held at least a bachelor’s degree.

At the same time, demographic trends raise concerns about the state’s long-term outlook. Massachusetts has one of the nation’s lowest birth rates and a rapidly aging population. Since 2007, natural population growth has declined sharply as deaths have increasingly outpaced births.

Higher education enrollment has also fallen. It has dropped by nearly 40,000 students since 2010, even after a slight increase in 2024.

Aidan Enright, author of “The Massachusetts Labor Force: Now and Beyond,” said international immigration helped drive labor force gains in 2024 but warned of broader long-term demographic and workforce challenges facing Massachusetts.

“The 2024 labor force rebound was the largest single-year increase in several years,” Enright said in the release. “But it was driven by a surge in international immigration. With a low birth rate, an aging workforce, and tighter federal immigration policies, Massachusetts faces serious headwinds ahead.”

Economic growth has slowed. The Bay State's GDP has trailed the national average for five consecutive quarters. Moody’s Analytics ranks the state among those currently in or at high risk of recession, according to the report.

The report urges policymakers to strengthen the workforce through expanded vocational and technical education and job training in high-demand fields.

Without structural reforms, the report warns that population loss and weak private-sector growth will hurt the state’s economy in the coming years.