Last week, Amazon announced the finalists for its 2nd headquarters and Boston is a contender. This is exciting news for a city that has seen significant growth in tech from companies like Wayfair, Tripadvisor, Raytheon, EMC, and Hubspot. According to the SEC, at the end of 2016, Raytheon added over 2000 jobs and Wayfair not far behind with 1791 new tech jobs. Amazon would certainly accelerate this growth and completely change the job market and recruitment landscape in Boston. We believe for the better. And yes, as a Boston-based company, we are slightly biased. Here are a few reasons why we think that Boston is a strong candidate for Amazon and what impact this could have on talent acquisition efforts:
- Brain Drain: A 2016 study by real estate services firm, CBRE, found that college students with tech degrees are leaving Boston for cities like San Francisco and New York that offer greater opportunities in their field. This is not a new phenomenon. Boston has always struggled to retain students from schools such as MIT, Harvard, Boston University, and Northeastern University – especially in tech. Amazon would offer a huge opportunity for students considering staying in the Northeast. It is planning to add 50,000 high paying jobs and invest $5 billion into the city.
- Location: The location that Amazon is considering is just minutes from a major international airport. This location makes it incredibly convenient for customers, partners, candidates, and remote workers to meet with Amazon. Anyone owning real estate in Revere or East Boston should hold on tight to their investments.
- Competition for Talent: Competition for talent is not always a bad thing. Amazon’s presence in Boston will certainly require companies like Wayfair, Raytheon, and even GE to offer better salaries and incentives to their existing employees. Amazon will also bring new talent to the city that will help boost the economy.
- Diversified Industries: The Boston economy is thriving. According to BLS, Boston unemployment rose 2.3% in October 2017 from a year ago. Boston added nearly 15,000 jobs in that time in a variety of industries including professional services, education and health services, and finance. Amazon’s headquarters will increase Boston’s prowess in tech.
Amazon’s announcement on its 2nd headquarters will be exciting for any of the 20 contenders but Boston is well positioned to make the short list (despite its cold winters). We are watching very closely!