Economy

Boston is the center of commercial and industrial activity for the metropolitan area and for much of New England. Wholesaling and retailing together account for more than a fourth of the total employment and annual payroll. The banking, insurance, and investment industries are of major importance. Located in the city are the Federal Reserve Bank of New England, the Boston Stock Exchange, numerous large commercial banks, and the home or regional offices of many insurance companies.

Manufacturing, though important, is less significant in Boston than in virtually any other major American city. Land is scarce and costly, and taxes are extremely high, largely because more than half of the city's land area is exempt from taxation, being taken up by governmental, educational, and religious institutions, and by parks and cemeteries. Factories tend to be small and production diversified. Among the leading manufacturing groups, based on number of employees, are printing and publishing, clothing manufacturing, food processing, and the making of machinery.

The metropolitan area, in contrast, is a major center of manufacturing—especially in the field of electronics—and is also noted for its firms engaged in research. Along Route 128, a semicircular expressway that runs through the suburbs, is one of the largest concentrations of science-based industries in the nation.

Boston's airport and seaport help make the city one of the principal transportation centers on the Atlantic coast. Boston is also a principal fishing port.

Government (federal, state, and local) and education (universities, colleges, and schools) are major employers. Boston's economy is also aided by its famed medical centers and by tourism and conventions.