Life Sciences Update | 2022 October
The Labour Crunch
Correlation between Talent & Lab Space Life Sciences Inventory & Employment Pool, Select Markets
Current U.S. Life Sciences Job Postings Outpace Hirings
Avg Monthly Hires
Avg Monthly Postings
70
20 25 30 35 40 45 50
Double the pre pandemic average
60
San Francisco Bay Area
50
Washington DC Metro
Boston
San Diego
40
Raleigh / Durham
Philadelphia
30 Thousands
0 5 10 15
New Jersey
Denver
Seattle
Los Angeles
20
London
Life Sciences Inventory (MSF)
Cambridge
Chicago
New York City
Oxford
10
0
20
40
60
80
100
120
Employment Pool (Thousands)
Source: Lightcast, Cushman & Wakefield Research
Source: Lightcast
Growth in demand for life sciences employees has mirrored lab space inventory growth as employers race to meet the needs of this growing sector. The San Francisco Bay area and Boston have two of the largest employment base and consequently the largest life sciences inventory. New York City also has one of the largest life sciences employment bases in the country due to its large research institutions which include Weill Cornell Medical Center, NYU Langone and Memorial Sloan Kettering, among others. Investment grade lab and cGMP space, however, are in the early stages in New York City. More space will be added with the planned 325,000 sf redevelopment of 345 Park Avenue South by Deerfield and Taconic Partners’ 399,000 sf redevelopment of 125 West End Avenue. Competition for talent in an overall very tight labour market has heated up in the life sciences sector with postings for life sciences jobs at currently double the pre-pandemic levels. In the U.S., year-to-date through August 2022, there have been a total of 413,120 life sciences occupation
postings, a 28% increase from the same period last year. This level of postings translates into a 3:1 ratio with unique jobs, meaning that every three postings equate to one unique job for a total of 137,707 jobs. U.S. hiring is lagging the pace of job postings when compared to the pre-pandemic period of 2018-2019. Some recently announced layoffs in the sector, however, have loosened some of the tightness in the labour market for employers as laid off life sciences workers have typically been able to find new employment relatively quickly. Canadian job postings also accelerated year-over-year (YoY) with 22,146 through August 2022, up 95%, with a 3:1 intensity. UK job postings decelerated from 2021 levels totaling 324,519 through August 2022, down 22%, with a 2:1 intensity.
7 / CUSHMAN & WAKEFIELD
LIFE SCIENCES UPDATE | 2022 OCTOBER
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