For years, the biggest concern among mid-size and large Massachusetts employers seemed to be that the high cost of housing here was chasing away current and prospective workers.<\/p>\n
That concern hasn\u2019t gone away. But the latest annual survey<\/a> of the Massachusetts Business Roundtable membership shows another worry has taken its place at the top of employers\u2019 concerns: economic and geopolitical uncertainty. <\/p>\n \u201cWith all the focus we give on cost of living in Massachusetts, … that\u2019s not what is top of mind for our members 1782244989,\u201d said JD Chesloff, the Roundtable\u2019s chief executive. \u201cIt just shows you how much this federal stuff is on people\u2019s minds.\u201d<\/p>\n The survey, taken by McKinsey & Co. of a majority of the Roundtable\u2019s nearly 100 members, shows employers believe inflation, macroeconomic pressures, and changes in federal policies will have the biggest impact on their organizations this year. Nearly everyone expects these factors to negatively affect the state\u2019s economy in 2026.<\/p>\n Get Starting Point<\/p>\n A guide through the most important stories of the morning, delivered Monday through Friday.<\/p>\n The concerns around affordability, though, haven\u2019t gone away, particularly with regard to housing. Eighty percent of respondents said reducing the cost of housing would have the greatest impact on the state\u2019s competitiveness, out of nine options. As a result, more than two-thirds say they are adjusting their salaries upwards as their primary talent retention strategy.<\/p>\n Only 13 percent of employers say they plan to expand their workforce in Massachusetts this year, similar to last year, while a quarter of them expect to add people outside of the state. More than half expect no change to their footprint here, and almost no one expects to reduce it. Most of the growth overall is being seen in entry-level jobs \u2014 a third expect to add those kinds of positions \u2014 with fewer new jobs seen in mid-career or executive level positions.<\/p>\n Chesloff said local employers became increasingly comfortable adding jobs outside of the state during the COVID-19 pandemic, when remote work was widely accepted. Now that most people are consistently back in the office \u2014 most Roundtable members have largely settled on a hybrid model, with several requiring fully in-person work \u2014 the trend toward adding more people outside of Massachusetts doesn\u2019t seem to be abating.<\/p>\n \u201cCompanies that have the option to hire … outside of the state are more comfortable with that post-COVID,\u201d Chesloff said. \u201cIf you\u2019re going to keep people here, it costs more.\u201d<\/p>\n Jon Chesto can be reached at jon.chesto@globe.com<\/a>. Follow him @jonchesto<\/a>.<\/p>\n