Economic Success Spurs Expanded Budget

Cambridge’s budget expanded in FY25 despite recent challenges in the economy, as the City has sufficient reserves and budgetary flexibility.

Here is a macro view into the local economy:

In several areas, the City is meeting or exceeding the success of neighboring cities in the greater Boston area as well as those throughout the United States.

One such area is personal income per capita, which was $93,899 for Cambridge in 2022. This is higher than the Massachusetts and U.S. averages.

Cambridge has also made strides in employment. In the second quarter of 2023, employment totaled 151,304 jobs, 95.3% of which were in the private sector. In February 2024, Cambridge’s unadjusted unemployment rate was 2.4%. This rate remains lower than those of the Boston Primary Metropolitan Statistical Area, Massachusetts, and United States. The city has also maintained a high job-to-resident ratio of 1.3 jobs for each resident.

The top employment sectors in Cambridge remain professional and business services, followed by education and health services. The higher education sector continues to be a main driver of the job market, employing more than 21,500 people. Harvard University and MIT lead this sector along with other preeminent research institutions, such as the Broad and Whitehead Institutes. These corporations spark innovation and attract commercial investment in the City.

Cambridge continues to solidify its role as national leader in the life sciences and high tech. As of 2024, over 400 firms in different aspects of the industry have headquarters or facilities in the city. Of the 20 largest biotechnology companies in the state, 16 have a major presence in Cambridge. Nine of the top 10 have their headquarters or major regional or national offices in the city: Takeda, Sanofi, Biogen, Novartis, Moderna, Bristol Myers Squibb, AbbVie, Alnylam, and Pfizer. Cambridge houses some of the top 25 employers in the high-tech industry, including Akamai, CarGurus, Google, HubSpot, and Phillips North America. Tech giants like Amazon, Apple, Facebook, and Google also have a presence in Cambridge.