Instead, due in large part to its high residential density, the local economy is predominantly made up of small businesses that cater to the local community. The retail industry alone provides 3,031 jobs, second only to the health services sector. The average wage of a retail worker, however, is only $26,208. These low wages are one of the most worrying elements of the city's economic landscape, said Steven Houdlette. "Four out of the five sectors with the lowest average incomes are in the top five when it comes to the number of jobs they provide." Whereas throughout the city's history, the majority of Somerville's blue collar workers were employed in industries like brickmaking, meatpacking or automobile manufacturing, they now work for much smaller businesses–and smaller paychecks.

One bright spot is the thriving health care industry within Somerville. 3,760 jobs alone fall into this category, as health facilities in the area cater to both the local population as well as to the residents of surrounding communities. The average wage of $56,940 is among the highest pay grades in the city. It is, however, one of the few industries in Somerville providing large numbers of high-quality jobs, raising the issue of tax revenues for the city at large.

Supplying just .27 jobs per resident, a third of the amount in neighboring Cambridge, the city does not benefit from the high revenues generated by commercial properties. Already facing a $8 million deficit next year, Somerville is suffering from cuts in state aid. Without commercial districts like Kendall Square in Cambridge, however, it is unknown where large-scale economic development may take place. Keith Craig, of Strategic Planning, emphasized that the studies are in their preliminary stages. "Once we get an understanding of exactly what land is available for which uses, we can decide the sorts of firms that we'd like to attract."