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Economy

Cambridge intends to preserve its diverse and unique commercial districts and foster an economy that works for everyone. Cambridge’s diversity is an important part of its identity, and can only be retained if all residents, regardless of background, have access to quality jobs,; the ability to start their own businesses, and programs that provide skill development and growth opportunities.

Envision indicators are updated as new data becomes available, which varies by indicator, but no more often than annually.

View the Economy Plan

Key Actions

Revise the commercial land use classification to allow for flexible retail formats and business models, providing new opportunities for unconventional businesses.

StrategyIncentivize the creation and preservation of affordable commercial space.
Action TypeZoning Changes
Lead DepartmentCDD
StatusCompleted
Project PhaseFinal phase

Change zoning to allow more housing and business development in certain areas on Mass Ave and Cambridge Street.

StrategyEncourage a business climate that prioritizes local, independent businesses and enables inclusive entrepreneurship.
Core Values
  • Economic Opportunity
  • Equity & Diversity
  • Livability
  • Sustainability & Resilience
Action TypeZoning Changes
Lead DepartmentCDD
StatusIn Progress
Project PhaseFinal phase

Evaluate ways to streamline permitting processes for small businesses.

StrategyEncourage a business climate that prioritizes local, independent businesses and enables inclusive entrepreneurship.
Core Values
  • Economic Opportunity
Action TypeStudy or plan
Lead DepartmentCDD
StatusIn Progress
Project PhaseMiddle phase

Provide additional informational sessions offered to minority- and women-owned business about the procurement process

StrategyEncourage a business climate that prioritizes local, independent businesses and enables inclusive entrepreneurship.
Core Values
  • Economic Opportunity
  • Equity & Diversity
Lead DepartmentCDD
StatusIn Progress
Project PhaseMiddle phase

Develop a mentorship program for underserved entrepreneurs.

StrategyEncourage a business climate that prioritizes local, independent businesses and enables inclusive entrepreneurship.
Core Values
  • Economic Opportunity
  • Equity & Diversity
Action TypePrograms and operations
Lead DepartmentCDD
StatusIn Progress
Project PhaseEarly phase

Conduct an assessment of the training and education needs of low- and moderate-income residents. Design new programs and revise current programs based on the recommendations of the needs assessment.

StrategyEnhance current training and education programs and expand partnerships with employers and institutions to meet the education and training needs of the Cambridge community.
Core Values
  • Community Health & Wellbeing
  • Economic Opportunity
  • Equity & Diversity
  • Learning
Action TypeStudy or plan
Lead DepartmentDHSP
StatusIn Progress
Project PhaseOngoing

Provide funding for STEAM internship opportunities for Cambridge students. Work with local business and academic institutions to create programs.

StrategyEnhance current training and education programs and expand partnerships with employers and institutions to meet the education and training needs of the Cambridge community.
Core Values
  • Community Health & Wellbeing
  • Economic Opportunity
  • Equity & Diversity
  • Learning
Action TypePrograms and operations
Lead DepartmentDHSP
StatusIn Progress
Project PhaseOngoing

View All Actions

Indicators

Comparative compound job growth rate of life sciences

Meeting target

Difference in compound annual growth rate of jobs in targeted sectors

Source: MA Dept. of Labor ES-202 and US BLS QCEW Job Reports
View More Information

Commercial R&D Lab Space

Comparative advantage in commercial R&D/lab space

Source: CBRE Q4 reports on lab space in metro Boston
View More Information

Median income by race and ethnicity

Needs improvement

This indicator tracks Cambridge’s progress toward economic inclusion. If Cambridge is going to become a more equitable city, it is imperative that income distribution by race becomes more equal. These targets aim to ensure that in 2030 no group’s median income is less than 80% of the median income for all of Cambridge’s households. For this indicator, households that are headed by students are excluded from the analysis.

The two lines in the chart show the median income of a selected group of households as a percentage of the median income of all non-student households. The two groups are:

  • Black non-student households
  • Hispanic non-student households

Source: Five Year American Community Survey Public Use Microdata Sample
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Proportion of households making a living wage for selected family types

Needs improvement

This indicator tracks the proportion of selected household types whose income covers typical living expenses without receiving assistance through income eligibility based programs. Understanding how many households fall under this threshold provides a measure the level of economic stress experienced by Cambridge residents. The selected household types and required incomes for 2022 are:

  • Single adults living alone ($67,603)
  • Single parents with one preschool age child ($111,627)
  • A married couple with one school-age child and one preschool age child ($142,246)

Source: Economic Policy Institute Family Budget Calculator, adapted using more locally-specific data, where available, by Cambridge CDD
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Gaps in educational attainment by race, ethnicity, and income

Needs improvement

This indicator tracks long-term educational attainment for young adults who graduated from Cambridge Rindge and Latin School (CRLS). Since educational attainment tends to be correlated with positive long-term employment and income outcomes, this is one of the best available measures to track long-term outcomes for children. The indicator measures the gap between selected groups of students in attaining any degree or certification within six years of graduation from CRLS.

The chart shows the gap in attaining any degree or certificate for:

  • Low-income and non-low-income students
  • Black students and all other students
  • Hispanic and all other students

Source: District Analysis and Review Tool (DART) for Success After High School from MA Dept. of Elementary and Secondary Education
View More Information

Differences in labor force participation by race, ethnicity, gender, and disability

Meeting target

This indicator tracks progress towards reducing unequal access to economic opportunities between Cambridge residents at a finer grain than other indicators. The City has limited capability to directly impact change for these indicators, but they remain an important way to track the cumulative overall impact of Envision Cambridge.

The chart shows the ratio of labor force participation between four comparison groups:

  • Black residents vs. non-Hispanic Whites
  • Hispanic residents vs. non-Hispanic Whites
  • Women vs. men
  • Residents with disabilities vs. those with no disabilities

Source: Five Year American Community Survey
View More Information

Number of business establishments with fewer than 20 employees per 1,000 population

Needs improvement

Small businesses create a sense of place unique to Cambridge and drive local and global economic development. This indicator tracks progress towards maintaining and growing the number of small businesses in Cambridge.

The chart shows the number of establishments with fewer than 20 employees per 1,000 population.

Source: Census County Business Patterns
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Number of small retail, food service, and accommodation establishments with fewer than 50 employees per 1,000 population

Needs improvement

Small businesses create a sense of place unique to Cambridge and drive local and global economic development. This indicator tracks progress towards maintaining and growing the number of small businesses in Cambridge.

The chart shows the number of small retail, food service, and accommodation establishments with fewer than 50 employees per 1,000 population.

Source: Census County Business Patterns
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Proportion of minority- and women-owned businesses participating in grants and consultation programs

Exceeding target

Equal access to entrepreneurial opportunities is crucial to closing the racial and gender wealth gaps. This indicator tracks how Cambridge businesses are directly taking advantage of available resources. It tracks progress towards racial/ethnic and gender economic equity.

The chart shows the proportion of minority- and women-owned businesses participating in grants and consultation programs. Note that for this indicator, years refer to fiscal years. For example, the value for 2018 is for FY2018, which ran from July 1, 2017 to June 30, 2018.

Source: CDD Economic Development Division
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