Boston’s once-thriving biotech sector is facing a major downturn as venture capital investment and government grants decline, leading to layoffs and dwindling job prospects.

The Wall Street Journal reports that the biotech industry in Boston, long considered a vital economic engine for the affluent region, is experiencing a significant slowdown. A combination of reduced venture capital funding and cuts to government research grants have taken a heavy toll, resulting in job losses and a challenging environment for those seeking employment in the field.

For many, like 31-year-old Jeremy Liew who moved from New Jersey to Boston in 2018 to pursue a Ph.D. in chemistry and launch a biotech career, the current situation has been especially difficult. Despite applying to around 500 local positions after earning his degree from the University of Massachusetts, Boston last year, Liew has had no success finding a job. He has even started contemplating opportunities abroad. “The industry really is booming in China, and that’s what a lot of people have told me, that I should consider applying there,” said Liew, who was born in Hong Kong.

The numbers paint a grim picture. In 2024, Massachusetts saw a slight decline in its approximately 65,000 biotech research and development jobs, following years of robust growth, even during the coronavirus pandemic. Federal data suggests that job losses persisted through at least June, and hiring remains sluggish. By September’s end, nearly 28 percent of greater Boston’s laboratory space was vacant, according to estimates from real estate firm CBRE.

The downturn poses significant risks for a region where high-paying jobs have historically offset sky-high living costs. Massachusetts now faces stiff competition from other states that are eager to attract talent and investment away from the area.

“There are states and countries chasing us every single day,” acknowledged Massachusetts Gov. Maura Healey (D) in an interview. In late October, Healey testified before the state legislature in support of a $400 million “competitiveness agenda” aimed at spurring new investment and supplementing lost research funding. The bill is currently under review by lawmakers.

Biotech is deeply intertwined with Boston’s economy, with offices and labs from major companies and startups spread across the region, often clustered near universities that generate research and future employees. Developers had bet big on continued demand during the pandemic, adding millions of square feet of new space — only to see much of it sit empty as the sector cools.

Venture capital funding has slowed significantly, hitting its lowest point since 2017 in the first half of 2025, according to MassBio. The Trump administration has also terminated tens of millions in active research grants in Massachusetts this year. While the state typically receives the most NIH funding per capita, the agency recently announced plans to distribute future grants more evenly across the country.

The impacts are being felt on the ground. In Kendall Square, a key life-sciences hub next to MIT in Cambridge, lab vacancy reached 17 percent in September compared to just 0.4 percent in 2021. Some restaurants frequented by biotech workers have closed. Cash-strapped startups are cutting staff and consolidating operations.

Breitbart News recently reported that Boston’s Democrat Mayor Michelle Wu credits Somalis for the city’s achievements:

During a press conference this week, Wu said the roughly 8,000 Somali immigrants who live in the Greater Boston area “are our neighbors, doctors and nurses, teachers, first responders, Boston police officers,” and said their contributions are what has made Boston a successful city.

“You cannot talk about any achievement that the city of Boston has had in safety, jobs and economic development, in education, without talking about the Somali community that has lifted our city up,” Wu said. “We are proud and we are grateful for our Somali community and our Somali American neighbors.”

Read more at the Wall Street Journal here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.