During our annual series of conversations with almost 50 Roundtable members this summer about their business, their industry, and the economy, one quote stood out: “The economy is throwing everyone for a loop.”

There are high interest rates but low unemployment. It’s still hard to find workers in some industries, but the labor market has cooled. Inflation was up, then down, and is now creeping up again. During these conversations last year, a recession was very much on everyone’s mind, however, this year it was barely mentioned. The high costs of housing which came up last year continued to dominate conversations this summer. And yet generally, with all this apparent contradiction, our members report that business is pretty good. As one member indicated, “things have slowed but not stopped.”

New issues emerged as well. Last year, few if any members mentioned Artificial Intelligence (AI). This year, nearly all did. We continued to hear about remote work, which is still evolving without resolving with some businesses enforcing back-to-work policies. As one member said, “The new normal is not going to be normal.” That pretty much sums it up.

The following five messages summarize what we heard from Roundtable members this summer, and will serve to both refresh our policy agenda and inform our advocacy in the coming months:

  • Cost of Living and Doing Business Dominate Concerns

    The top policy issue identified by Roundtable members was the cost of housing, followed closely by the condition of the state’s transit system and commutes in general. While there are regional differences regarding the specific challenges, every corner of the state is struggling with housing and transportation. These affordability issues are exacerbating workforce shortages and will continue to be the focus of the Roundtable’s policy agenda. As one member said, “If you want the economy to run, you have to have an affordable place for people to live and reliable transportation.”

    • Remote Work is STILL Evolving

    Three years into the remote work experiment caused by the pandemic, there still is no consistency amongst employers’ policies. This continues to impact workplace culture and employee expectations. It also continues to be an important consideration in lease and office space decisions. As one member said relative to company culture “To grow people, we’ve got to be with people” – not surprisingly we are beginning to see some employers enforce their back-to-work policies. 

    • Artificial Intelligence (AI) is on Everyone’s Mind

    After years of barely hearing a mention of AI, this year it burst onto the agenda. Nearly everyone talked about it, specifically how to incorporate AI into everyday work while addressing the risk of inaccurate information, the importance of focusing on ethical considerations, and the need for government regulation. Most members consider AI as a tool to enhance work rather than replace talent. In other words, “AI will result in a loss of jobs, the creation of new jobs, and an enhancement of already existing jobs.”

    • Cautious Optimism about the Massachusetts Economy

    While the economy is facing some headwinds and there are continued, nagging cost pressures, unlike previous years, there was no mention of an upcoming recession. Hiring continues, though at a slower pace, but access to talent and the state’s strong innovation ecosystem is still attractive to employers and employees alike. Opportunity exists in accessing untapped talent sources, a focus of the Roundtable’s agenda this fall. As one member reminded us: “Massachusetts is competitive, can win, has won.”

    • Economic Pressures Impacting Hiring and Growth

    “We are sitting in a car in neutral.” Between interest rates, lingering effects of supply chain issues, the banking crisis, and persistent inflation, growth is slowed. While hiring is still happening, it’s not at the white-hot pace of a year ago. When this will break is unclear, but employers are itching to put their foot on the gas.

    As a member-driven organization, these themes will help to refresh the Roundtable’s policy agenda and inform our advocacy and engagement on public policy in the months ahead. Thank you to the Roundtable membership for their leadership in our community and for their hands-on engagement in ensuring that Massachusetts continues to be a competitive place to live and do business.