Life Science: Great Promise & Rapid Growth

Growth in life science is being driven by a combination of technological advancements and an aging population.

Employment During the 1990s technology boom, life science was expected to be a growth sector for the U.S. economy, but the growth was slow in coming. Much of the growth in this sector has taken place since 2000, especially in the current economic expansion. Using the Bureau of Labor Statistics’ employment in research and development in the biotechnology industry as a measure of the growth of the industry, there was almost no job growth in the 1990s. From 1990 to 2000, employment in biotechnology R&D barely changed (+0.2% per year) while total U.S. employment rose by 1.9% per year. But since the beginning of 2000, the sector has grown nearly five times as fast as the economy as a whole, adding 85,000 jobs. Roughly 70% of that job growth (61,000) has taken place in just the past eight years.

LIFE SCIENCE EMPLOYMENT GROWTH BY DECADE AVERAGE ANNUAL GROWTH RATE

Life Sciences Total Employment

-1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0%

4.5%

1.9%

1.8%

1.7%

0.2%

-0.1%

1990-2000

2000-2010

2010-2018

Source: Bureau of Labor Statistics, Cushman & Wakefield Research

RECESSION-RESILIENT? When compared to the overall economy and the tech sector, the life science sector’s recession-resistant performance is likely due to the fact that the industry is strongly driven by rising demand caused by an aging population and the nature of the industry. In turn, product development is propelled by technological change and innovation. As the technology that enables product development has advanced, the sector has continued to grow.

LIFE SCIENCE R&D EMPLOYMENT IN RECESSION

Total

Technology Life Sciences

-7.0% -6.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0%

-0.2%

0.0%

-1.1%

-1.2%

-1.4%

-1.4%

-3.6%

-5.0%

-6.2%

1990-91

2001

2007-2009

Source: Bureau of Labor Statistics, Cushman & Wakefield Research

4  CUSHMAN & WAKEFIELD