Shortage Of Qualified Workers In Tech, Analytics Cited As Barrier
The latest report from business consultants Mass Insight suggests that while Boston’s financial services sector is poised to grow in the next 10 years, but there is “a major deficit of workers qualified in technology, analytics and other areas that are quickly growing essential to the industry,” the Boston Business Journal reports in its “Techflash” blog. The report found that the financial services sector makes up 9% of the state’s gross product, and pays employees above-average wages. At $115,810, the average annual wage for financial services sector employees is more than double the state average. Still, the report warns that “talent is short” in areas key to the industry such as “fintech, risk assessment and advanced analytics.” Reasons for this include a brain drain of international students studying in Boston before returning to their home countries after graduation, the costs of living in the state, and “poor infrastructure”, the report said.
In comments at an event marking the report’s release Wednesday, Boston Private CEO Clayton Deutsch said gains in the city’s financial services sector “should benefit Boston tremendously, if we don’t screw it up.” However, he warned states including California, Florida, and Texas “are eager to usurp Boston” in the sector. Mass Insight CEO Bill Guenther recommended the state “make cross-sector investments in cybersecurity and analytics, an effort he said Gov. Charlie Baker supports.”
What This Means For Small Businesses
Though positive indicators of an economic recovery in Massachusetts have become more regular, this latest report shows hiring is lagging industry growth. This presents both opportunities and challenges for Boston’s small businesses, particularly those in sectors serving the financial services industry.
Additional Reading
NFIB recently reported on Massachusetts jobs data.
