JD Chesloff, President & CEO, Massachusetts Business Roundtable
In an interview with Invest:, JD Chesloff, president and CEO of the Massachusetts Business Roundtable, highlighted its efforts to integrate unemployed and underemployed immigrants with international credentials into the workforce, and the significant strides made in early childhood education. “I’m optimistic about the region’s prospects. The outlook remains exciting and encouraging, given the strengths we have in place,” Chesloff said.
What were the key milestones or achievements for the Massachusetts Business Roundtable in the past year?
Over the past year, one of our significant achievements was focusing on untapped talent sources to address the state’s workforce challenges. Employers have struggled to find qualified candidates for open positions. We released several impactful reports, including one on immigrants with international credentials who are underemployed or unemployed due for a variety of reasons.. We identified approximately 106,000 such individuals and provided recommendations to break down those barriers and integrate them into the workforce. This initiative has gained considerable momentum, and the Roundtable has received a couple of awards for that work.
Another key area was early childhood education, which is essential for enabling more people to join the workforce. The legislature has made significant strides in improving the affordability and quality of childcare. The state has uniquely backfilled $450 million of federal funds used during the pandemic to keep child care centers open. These efforts have addressed access and affordability issues, significantly impacting our community.
What are the biggest challenges facing businesses in Massachusetts?
The rapid increase in the cost of living is a major concern. We conduct an annual survey with McKinsey, and the results show that the cost of living has become a top issue for our members. A few years ago, about a third of our members (32-33%) identified it as a concern. This year, that number jumped to 81%, primarily due to rising housing costs. Additionally, our members are finding it challenging to recruit talent. This trend threatens our long-term competitiveness, as our economy relies on access to top talent. Addressing the cost of living, particularly housing, is critical for maintaining our region’s economic health.
Economic challenges remain top of mind for our members. Our upcoming survey highlights concerns about the economy, interest rates, and the fear of recession, which have been persistent issues over the last few years. These challenges impact hiring and profits significantly. Additionally, there’s growing interest in federal issues, likely driven by the upcoming election and the associated uncertainties. AI is also becoming a major focus, especially for larger companies, as they adopt these technologies more rapidly. Addressing these economic and technological challenges is crucial for our members.
Where do you see the most potential for growth in the region?
Despite challenges like the cost of living and talent acquisition, companies still love being here because of our unparalleled innovation ecosystem, talent, and access to capital. We have all the elements to build industry clusters, as we did with life sciences. Looking ahead, we should continue investing in life sciences to maintain our global leadership. Additionally, climate tech is emerging as a significant opportunity. We have the potential to be a world leader in this field, and with proper investments, this industry can thrive here. We’re also exploring applied AI and robotics, which are promising areas for future growth.
How does the Roundtable support small and medium-sized businesses in the region?
While the Roundtable primarily focuses on large employers, we recognize that large and small businesses are part of an interconnected ecosystem. In climate tech, for example, there’s a blend of innovative startups and mature companies. Our vision for building a climate tech ecosystem includes bringing all these resources together and ensuring they move in the same direction. Supporting this collaborative approach is essential for fostering innovation and growth across the board.
How is the Roundtable helping members incorporate new technology and innovation?
The Roundtable supports members by providing a platform to share best practices. We bring members together through virtual forums, dinners, and other events to discuss topics that are critical to the state’s long term competitiveness. . These discussions help companies learn from each other and navigate new technological challenges. This model, which proved effective during the early stages of the pandemic, has been invaluable for addressing current policy issues and fostering collaborative solutions.
What are the organization’s policy advocacy efforts focused on?
Our advocacy is primarily focused on talent, which we address through three main categories: talent recruitment and retention, talent development, and talent diversity. For recruitment and retention, we focus on issues like housing, child care, infrastructure, broadband, and transportation. Talent development involves aligning skill development with in-demand jobs. For talent diversity, we work on initiatives like our report on immigrants with international credentials and collaborations with minority-serving institutions. These efforts guide our policy priorities and advocacy to support a diverse and skilled workforce.
Many of our members have partnerships with local employers and workforce development organizations. One example is our collaboration with the Executive Office of Labor and Workforce Development. In January, the administration released an executive order on skills-based hiring, eliminating unnecessary degree requirements in state government. This led to the formation of the MassSkills Coalition, which encourages the private sector to adopt similar practices. This initiative helps break down barriers and integrates untapped talent into the workforce.
How does the Roundtable contribute to the community?
Individual Roundtable members are very active in community involvement. The Roundtable itself impacts communities through advocacy efforts. For instance, we’re receiving an award from the Massachusetts Immigrant and Refugee Advocacy Coalition for our work in breaking down barriers for immigrants. We support policies like in-state tuition for immigrants at public institutions and early childhood education initiatives. While we do provide financial support to community-based organizations, our most significant impact is through our policy work.
What advice would you offer to individuals or businesses looking to relocate to the area?
Massachusetts has a variety of tools and incentives to help businesses relocate or grow here. The state offers opportunities to connect employers with workers and other employers, supported by a robust public sector infrastructure. My message to them is that Massachusetts has an unparalleled ecosystem of talent, innovation, financial resources, support, and quality of life. This makes it a highly attractive place for businesses to thrive.
