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US State economic profile
Massachusetts - Economic Profile
Statistics, economic information and rankings for the Bay State
In 2026, the state of Massachusetts has a population of 7,242,285, having grown an annualized 0.7% over the five years to 2026, which ranks it 21st out of all 50 US states by growth rate. Massachusetts' gross state product (GSP) in 2026 reached $651.1b, with growth of 1.7% over the 5 years to 2026. Businesses in Massachusetts employed a total of 4,865,996 people in 2026, with average annual employment growth over the past five years of 1.1%. The top three sectors by total employment are Professional, Scientific & Technical Services, Real Estate & Rental & Leasing, Healthcare & Social Assistance, while the unemployment rate across the state in 2026 was 5.2%.
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State economic profile
Massachusetts Economic Overview
$651.1b
Gross state product
7,242,285
Population
865,042
Businesses
What is Massachusetts' Gross Domestic Product (GDP)?
In 2026, Massachusetts' GDP reached $651.1b, representing an increase of 1.7% from 2025. Massachusetts' GDP has grown at an annualized rate of 1.9% over the five years to 2026. Moreover, Massachusetts' trailing five-year GDP growth ranks it 31st out of all 50 US states.
State GDP, or Gross State Product, is a measurement of a state's output, or the sum of value added from all industries in the state. It is a common indicator used to track the health of a state's economy.
You can track trends in Massachusetts' GDP, and compare them to the national average, using the chart below.
State economic profile
Massachusetts Industry Trends
Learn about current trends affecting the most significant industries for Massachusetts' state economy, down to the county level. IBISWorld offers state industry research reports on over 30,000 industries across all 50 states in the US, including 638 industries in Massachusetts.
What are Massachusetts' Largest Industries by Revenue?
The largest industries by revenue in Massachusetts are Life Insurance & Annuities, Colleges & Universities and Portfolio Management & Investment Advice, which generated $74.5b, $54.8b and $52.4b in 2026.
| Industry | 2026 revenue | |
|---|---|---|
| 1. | Life Insurance & Annuities | $74.5b |
| 2. | Colleges & Universities | $54.8b |
| 3. | Portfolio Management & Investment Advice | $52.4b |
| 4. | Drug, Cosmetic & Toiletry Wholesaling | $50.7b |
| 5. | Scientific Research & Development | $44.7b |
| 6. | Hospitals | $44.5b |
| 7. | Property, Casualty and Direct Insurance | $39.2b |
| 8. | Commercial Banking | $39.2b |
| 9. | Public Schools | $38.3b |
| 10. | Wireless Telecommunications Carriers | $38.3b |
State economic profile
Top Companies in Massachusetts
Learn about current trends affecting the top companies in Massachusetts. IBISWorld offers benchmarking data and tools on over 5,000 companies in the US.
Top 10 Companies Headquartered in Massachusetts by Employment
The largest companies by employment in Massachusetts are State of Massachusetts, University of Massachusetts System and Massachusetts General Hospital, which employed 45,515, 26,000 and 25,000 people in 2026.
| Company | 2026 employment | Share of employment | |
|---|---|---|---|
| 1. | State of Massachusetts | 45,515 | 0.9% |
| 2. | University of Massachusetts System | 26,000 | 0.5% |
| 3. | Massachusetts General Hospital | 25,000 | 0.5% |
| 4. | Brigham and Women's Hospital | 21,000 | 0.4% |
| 5. | City of Boston | 19,060 | 0.4% |
| 6. | Amazon.Com, Inc. | 18,000 | 0.4% |
| 7. | Walmart Inc. | 13,405 | 0.3% |
| 8. | Raytheon Co. | 12,000 | 0.2% |
| 9. | The Home Depot, Inc. | 9,711 | 0.2% |
| 10. | Boston Children's Hospital | 7,500 | 0.2% |
State economic profile
Massachusetts Sector Statistics
In Massachusetts, certain sectors drive a higher share of state GDP and employ more workers than others. However, simply looking at raw numbers doesn't always tell the whole story. Factoring in the current year growth percentage, in addition to the annualized growth percentage over the past five years, will give you a deeper understanding of the economic situation.
What is Massachusetts' GDP by Sector?
The Professional, Scientific & Technical Services, Real Estate & Rental & Leasing and Healthcare & Social Assistance sectors contributed the most to Massachusetts' GDP in 2026, representing a combined 44.3% of state GDP.
GDP trends by sector are an important indicator of which sectors are contributing the most value-add to the state economy, in addition to how the state economy is evolving over time.
| Sector | GDP | Growth 2026 | Annualized growth 2021-26 |
|---|---|---|---|
| Professional, Scientific & Technical Services | 117,436,243,352 | 4.4% | 3.8% |
| Real Estate & Rental & Leasing | 93,415,866,463 | 3.1% | 3.2% |
| Healthcare & Social Assistance | 62,068,502,196 | 2.7% | 2.7% |
| Information | 58,728,395,723 | 8.4% | 8.1% |
| Manufacturing | 52,464,863,010 | 0.4% | 0.4% |
| Finance & Insurance | 45,665,322,317 | -1.5% | -1.7% |
| Retail Trade | 29,444,887,167 | 4.3% | 3.6% |
| Wholesale Trade | 23,120,490,575 | -2.6% | -3.0% |
| Accommodation & Food Services | 19,784,756,760 | 5.8% | 6.5% |
| Administration, Business Support and Waste Management Services | 18,968,087,820 | 2.1% | 2.4% |
| Educational Services | 18,932,818,290 | 2.6% | 3.2% |
| Construction | 17,687,317,558 | -3.3% | -4.2% |
| Management of Companies and Enterprises | 17,399,367,333 | 3.2% | 3.5% |
| Transportation & Warehousing | 13,632,089,792 | 4.8% | 4.1% |
| Other Services (except Public Administration) | 9,495,191,100 | -2.1% | -1.7% |
| Utilities | 9,138,410,647 | -1.4% | -3.4% |
| Arts, Entertainment & Recreation | 7,544,894,976 | 7.1% | 8.0% |
| Agriculture, Forestry, Fishing & Hunting | 560,885,891 | -7.9% | -7.6% |
| Mining | 127,734,911 | 6.7% | 1.1% |
What is Massachusetts' Employment by Sector?
The Healthcare & Social Assistance, Educational Services and Professional, Scientific & Technical Services sectors contributed the most to employment in Massachusetts in 2026, representing a combined 38.6% of state employment.
Employment trends by sector are an important indicator of which sectors are growing or contracting most rapidly relative to the state economy as a whole.
| Sector | Employment | Growth 2026 | Annualized growth 2021-26 |
|---|---|---|---|
| Healthcare & Social Assistance | 802,340 | 2.0% | 2.4% |
| Educational Services | 573,619 | -0.4% | 1.0% |
| Professional, Scientific & Technical Services | 502,109 | 2.3% | 3.0% |
| Retail Trade | 501,699 | 1.3% | 2.3% |
| Accommodation & Food Services | 331,064 | 1.1% | 6.2% |
| Administration, Business Support and Waste Management Services | 298,374 | 1.7% | 3.0% |
| Transportation & Warehousing | 287,148 | 3.2% | 4.8% |
| Information | 276,251 | 4.2% | 6.1% |
| Finance & Insurance | 260,331 | 0.6% | 2.5% |
| Manufacturing | 241,578 | 0.6% | 1.6% |
| Construction | 227,562 | 1.6% | 2.3% |
| Other Services (except Public Administration) | 182,564 | 1.1% | 3.2% |
| Wholesale Trade | 150,124 | 0.7% | 1.2% |
| Real Estate & Rental & Leasing | 122,905 | 1.9% | 2.4% |
| Arts, Entertainment & Recreation | 83,623 | 1.4% | 5.4% |
| Utilities | 17,416 | 1.7% | 1.8% |
| Agriculture, Forestry, Fishing & Hunting | 6,057 | -0.3% | -2.0% |
| Mining | 1,232 | -1.9% | 0.3% |
State economic profile
Massachusetts Employment Trends
4.9m
Employment
5.2%
Unemployment
What Employment Trends are Impacting Massachusetts?
The state of Massachusetts employs 4,865,996 people in 2026, which ranks it 12th out of all 50 US states. Employment in Massachusetts has grown at an annualized rate of 2.9% over the five years to 2026, overperforming the national average of 1.7%. Major sectors by employment in Massachusetts include Healthcare & Social Assistance, Educational Services and Professional, Scientific & Technical Services, which employed 802,340, 573,619 and 502,109 people in 2026, respectively. Massachusetts' unemployment rate is 5.2% in 2026, which ranks it 44th out of all 50 US states. Massachusetts' unemployment rate has trended downwards at a rate of -0.4% over the five years to 2026, overperforming the US economy as a whole.
Employment trends indicate the degree of tightness or slack in labor markets, in addition to the overall strength of an economy. Faster employment growth typically indicates a strong and growing economy, while lower unemployment tends to imply tightness in labor markets.
You can track unemployment trends in Massachusetts, and compare them to the US economy, using the chart below.
$150.4k
Per capita disposable income
What is Massachusetts' Per Capita Disposable Income?
Per capita disposable income, also known as disposable personal income (DPI), is the amount of money that the average person in an economy has available for spending and saving after accounting for income taxes. Massachusetts' DPI in 2026 was $150.4k, compared to the US average of $156.5k, which places it 15th out of all 50 US states.
Disposable income is regarded as a key economic indicator as trends in disposable income are indicative of the level of aggregate demand, the state of labor markets and the financial strength of households.
You can track trends in Massachusetts' per capita disposable income, and compare it to the US average, using the chart below.
State economic profile
Massachusetts Construction & Building Trends
$11,155.4tn
Nonresidential construction
$4.2tn
Residential construction
10,032
Building permits
What can construction trends tell you about a state’s economy?
In Massachusetts, non-residential construction was $11,155.4tn in 2026, which ranks it 5th out of all 50 US states. Residential construction was $4.2tn in 2026, which places Massachusetts 16th out of all 50 US states. The number of building permits issued in Massachusetts in 2026 was 10,032, representing a -11.3% annualized growth rate between 2021 and 2026.
Trends in the construction sector are important because it creates jobs, income and tax revenue for a state. In addition, construction sector activity impacts other sectors in its supply chain, including manufacturing, wholesaling, warehousing, transportation, and real estate, rental and leasing services. Therefore, construction trends are important indicators of the health of an economy.
You can track trends in the number of building permits issued in Massachusetts, and compare it to trends in the number issued in the United States as a whole, using the chart below.
State economic profile
Massachusetts Population Statistics
Which Counties in Massachusetts have the Largest Populations?
The counties with the highest populations in Massachusetts are Middlesex County, Worcester County and Essex County, which had populations of 1,630,420, 874,965 and 815,300 people in 2026.
| Region | 2026 population | Annual growth 2021-26 | Share of population |
|---|---|---|---|
| Middlesex | 1.6m | 0.1% | 22.5% |
| Worcester | 875.0k | 0.3% | 12.1% |
| Essex | 815.3k | 0.2% | 11.3% |
| Suffolk | 755.0k | -0.6% | 10.4% |
| Norfolk | 732.2k | 0.2% | 10.1% |
| Bristol | 586.4k | 0.3% | 8.1% |
| Plymouth | 540.4k | 0.3% | 7.5% |
| Hampden | 456.9k | -0.2% | 6.3% |
| Barnstable | 232.9k | 0.2% | 3.2% |
| Hampshire | 166.0k | 0.7% | 2.3% |
| Berkshire | 124.9k | -0.5% | 1.7% |
| Franklin | 70.6k | -0.1% | 1.0% |
| Dukes | 20.8k | -0.1% | 0.3% |
| Nantucket | 14.6k | 0.3% | 0.2% |
State economic profile
Massachusetts Demographics
In Massachusetts, 49.5% of the population has a Bachelors or higher. The largest ethnic group in Massachusetts is White, accounting for 66.0% of the state's population.
Education level in Massachusetts
| Education level | Share (%) |
|---|---|
| Bachelors or higher | 49.5 |
| Other | 50.5 |
Race in Massachusetts
| Race | Share (%) |
|---|---|
| White | 66.0 |
| Hispanic | 14.8 |
| Asian | 8.6 |
| Black | 8.1 |
| Other | 2.5 |
Massachusetts State industry reports
IBISWorld State Industry Reports help you quickly understand how an industry performs at the state level compared with the national level, with accurate and unbiased industry information with a local focus. Use this collection to:
- Discover key local industry trends
- Identify threats and opportunities at the subnational level
- Inform your business strategies and planning
See our list of 638 Massachusetts industry reports.
Other states to explore
Compare Massachusetts’s economy with other states in the United States.
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