Securing top talent in research and development and manufacturing will remain challenging for life sciences companies in 2024, according to a new report by CBRE.
While historically low U.S. unemployment is contributing to the stability of the nation’s overall labor market, life sciences companies will continue to face challenges in finding top R&D and manufacturing talent in 2024, according to a new report released Wednesday by CBRE.
The annual report describes U.S. life sciences job growth as “sluggish” and blames interest rates—which began rising in 2022—as a culprit, while noting that unemployment in the sector is below 2%, compared to roughly 4% for all professions.
“Employment in the biotechnology R&D and pharmaceutical/medicine manufacturing industries has grown only 0.2% in the 21 months following June 2022,” states the report, which warns that “the forecast for the next year anticipates continued sluggishness, possibly even declines, in life sciences labor markets.”
Matt Gardner, Americas life sciences leader at CBRE, said in a statement that employment in the sector is expected to “hold steady over the next year and to perhaps decline in a few markets,” adding that the silver lining is that “this talent is valuable—life sciences specialists who leave one job often find another quickly.”
Also on the positive side of the ledger, the report finds that the growth in new graduates with scientific and technical experience—which drives innovation in the life sciences industry—"continues at a strong pace.”
According to CBRE, the New York-New Jersey area generates more life sciences graduates than any U.S. market, while Boston is home to the most bioengineers/biomedical engineers, biochemists, biophysicists, microbiologists, medical scientists and biological technicians of any area.
Still, when it comes to life sciences R&D roles, the top U.S. concentration of microbiologists, chemists and biological technicians is in Madison, Wisconsin, while Trenton, New Jersey boasts the highest concentration of epidemiologists and one of the highest of chemists, biochemists and biophysicists, according to the report.
Ian Anderson, senior director of research and analysis, said in a Wednesday briefing on the report’s findings that CBRE evaluated the 100 largest U.S. life sciences labor markets with the goal of identifying “where the most attractive pools of talent” for the sector currently exist.
“This is the most important component for growth in this industry,” Anderson said, adding that the report was compiled first and foremost for life sciences companies to be used as a guide for “where the best places are for them and their businesses to grow, thrive and expand in future years.”
CBRE ranked Boston-Cambridge, the San Francisco Bay Area, Washington, D.C.-Baltimore, New York-New Jersey and Los Angeles-Orange County as the top five U.S. markets for R&D. When it comes to manufacturing, New York-New Jersey, Boston-Cambridge, Chicago, Houston and the San Francisco Bay Area had the highest rankings. San Diego, which is a “traditional stalwart” according to CBRE, was ranked seventh in R&D and eighth in manufacturing.
In R&D, Los Angeles-Orange County “outpaced Raleigh-Durham and San Diego primarily due to its sheer volume of existing talent and new graduates,” according to CBRE. However, the report noted the importance of San Diego and Raleigh-Durham in the life sciences industry “is underscored by their capacity to host a similar amount of ‘core’ life sciences researchers as much larger markets like New York-New Jersey, Los Angeles-Orange County and Philadelphia.”
The report comes as biotech companies met this week in San Diego at the 2024 Biotechnology Innovation Organization (BIO) International Convention. While San Diego remains a top U.S. biotech hub, the region has seen a drop in life science–related jobs and R&D amid economic headwinds.
“Securing top talent remains a challenge for many life sciences companies around the country,” Anderson concluded. “For the near term, the data suggests that it’s going to continue to remain an issue.”
Greg Slabodkin is the news editor at BioSpace. You can reach him at greg.slabodkin@biospace.com. Follow him on LinkedIn.
