Boston, October 13, 2025
News Summary
New England leaders express concern over the growing economic and educational gap as Southern states like Florida and Texas show remarkable growth. Massachusetts, in particular, struggles with job losses and a challenging business climate. A recent report indicates Massachusetts ranks low in job growth and tax climate, highlighting disparities. As Southern states implement effective policies, New England is urged to reassess strategies to remain competitive in job retention and educational outcomes.
Boston — New England faces a widening economic and educational gap as Southern states and cities outpace the region on growth, jobs and schooling, prompting renewed concern among state leaders about competitiveness.
Key developments
The South is now recognized as America’s fastest-growing region. Two U.S. cities, Jacksonville, Florida, and Fort Worth, Texas, reached populations of over 1 million last year, with Jacksonville last having a smaller population than Boston in 1980. Florida is experiencing a “trillion-dollar domestic migration boom” leading to a surge in wealth.
At the same time, New England — and Massachusetts in particular — shows signs of economic strain. A Massachusetts Taxpayers Foundation report ranked Massachusetts last in the nation for private-sector job growth, with New Hampshire at 42nd. Massachusetts ranks 41st in state business tax climate according to the conservative Tax Foundation, while New Hampshire ranks 6th.
Immediate impacts
Massachusetts lost jobs from 2023 to 2024, while New York, Florida, Texas, and North Carolina saw job gains. North Carolina’s life science industry expanded by $10.8 billion over 25 expansions or new facilities in 2024, while Massachusetts now reports a surplus of unused laboratory space.
Education and workforce trends
States in the South have implemented policies that reduced regulatory barriers for construction, cut business taxes and broadened educational options. The region’s education changes emphasize accountability and phonics-driven curricula. National test scores show significant academic improvements in Mississippi, Louisiana, and Alabama.
Economic cost pressures
The Massachusetts Taxpayers Foundation report showed the state was in the bottom 10 nationally for energy costs, healthcare premiums, childcare costs, commuting times, and housing costs. These cost pressures combine with weak private-sector job growth to challenge retention and attraction of workers and companies.
Why this matters now
New England historically viewed the South and Southwest as less competitive economically and educationally. That perception has shifted as regional leaders acknowledge they are being outpaced on population growth, jobs and business climate. The realization that states once dismissed are now competitors could prompt changes in leadership priorities in New England.
Policy differences driving outcomes
Southern states have taken a series of policy steps that observers link to recent gains: cutting business taxes, reducing construction barriers, and implementing educational policies focused on measurable results. In contrast, New England faces questions about whether existing priorities sufficiently address competitiveness metrics such as tax rates, educational quality and regulatory flexibility.
Context and next steps
Massachusetts has pockets of success — including continued strengths in higher education and innovation hubs — but faces structural challenges noted in multiple state-level comparisons. The state’s surplus of unused laboratory space contrasts with the rapid expansion of life sciences in states like North Carolina. Regional leaders and stakeholders will likely weigh changes in economic strategy, regulatory policy and educational approaches in response to these trends.
FAQ
Q: What is the regional growth trend mentioned in the article?
A: The South is now recognized as America’s fastest-growing region.
Q: Which cities reached populations over 1 million?
A: Two U.S. cities, Jacksonville, Florida, and Fort Worth, Texas, reached populations of over 1 million last year, with Jacksonville last having a smaller population than Boston in 1980.
Q: What is happening in Florida that affects wealth and migration?
A: Florida is experiencing a “trillion-dollar domestic migration boom” leading to a surge in wealth.
Q: How did the Massachusetts Taxpayers Foundation rank Massachusetts for private-sector job growth?
A: A Massachusetts Taxpayers Foundation report ranked Massachusetts last in the nation for private-sector job growth, with New Hampshire at 42nd.
Q: How do Massachusetts and New Hampshire compare on state business tax climate?
A: Massachusetts ranks 41st in state business tax climate according to the conservative Tax Foundation, while New Hampshire ranks 6th.
Q: What do recent job trends show?
A: Massachusetts lost jobs from 2023 to 2024, while New York, Florida, Texas, and North Carolina saw job gains.
Q: How did North Carolina’s life science industry change in 2024?
A: North Carolina’s life science industry expanded by $10.8 billion over 25 expansions or new facilities in 2024.
Q: Are there measurable education improvements in the South?
A: National test scores show significant academic improvements in Mississippi, Louisiana, and Alabama.
Q: What cost areas did the Massachusetts Taxpayers Foundation report identify as problems?
A: The Massachusetts Taxpayers Foundation report showed the state was in the bottom 10 nationally for energy costs, healthcare premiums, childcare costs, commuting times, and housing costs.
Quick reference table
| Metric | Massachusetts | Comparison / Other state |
|---|---|---|
| Private-sector job growth rank | A Massachusetts Taxpayers Foundation report ranked Massachusetts last in the nation for private-sector job growth | New Hampshire at 42nd |
| State business tax climate | Massachusetts ranks 41st in state business tax climate according to the conservative Tax Foundation | New Hampshire ranks 6th |
| Job change, 2023–2024 | Massachusetts lost jobs from 2023 to 2024 | New York, Florida, Texas, and North Carolina saw job gains |
| Life science expansion (2024) | — | North Carolina’s life science industry expanded by $10.8 billion over 25 expansions or new facilities in 2024 |
| Population milestones | — | Two U.S. cities, Jacksonville, Florida, and Fort Worth, Texas, reached populations of over 1 million last year, with Jacksonville last having a smaller population than Boston in 1980 |
| Education outcomes | — | National test scores show significant academic improvements in Mississippi, Louisiana, and Alabama |
| Cost pressures | The Massachusetts Taxpayers Foundation report showed the state was in the bottom 10 nationally for energy costs, healthcare premiums, childcare costs, commuting times, and housing costs | — |
| Migration and wealth | — | Florida is experiencing a “trillion-dollar domestic migration boom” leading to a surge in wealth |
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Additional Resources
- NH Journal: The NH Advantage is Vindicated in Boston
- Boston Globe: Inflation and Economy in New England
- TD Economics: State Economic Forecast
- CBIA: Connecticut GDP Growth in 2024
- Travel and Tour World: New England Faces Devastating Tourism Slump
- Wikipedia: Economic History of the United States
- Encyclopedia Britannica: Economy
- Google Search: New England Economy
- Google Scholar: New England Economic Trends
- Google News: New England Economy
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