During the Great Depression, thousands of farmers from the Great Plains packed their bags and headed to California in search of work, mostly as migrant farmers. Ironically, today the Golden State is probably not the best destination for many American unemployed. Even with this month’s drop in the national jobless rate, the state’s preliminary October unemployment number from the Bureau of Labor Statistics is hovering just below 12 percent. Instead, job seekers and their families in California may be packing up their bags and moving East to regions with growing employment prospects.
Where are the unemployed who are willing to move heading? It’s no surprise that many are moving to states or metropolitan areas with below-average unemployment. It is well know that states like North Dakota, South Dakota, Texas, and Pennsylvania are all allowing the oil and gas industry to expand production, thus boosting the demand for skilled labor. The Wall Street Journal reports North Dakota “has 18,000 unfilled jobs” 1 and Gallop has ranked both North and South Dakota as two of the top three best states to find a job.2
With Dell Corporation located just outside Austin, Texas, the Lone Star State boasts its home to the new Silicon Valley. Many of its cities have various job prospects and unemployment rates well below the national average.3 A diverse economy made up of universities, corporate firms, and state and local governments mark cities like Minneapolis-St. Paul, Madison, Boston, Raleigh, and Seattle as potential destinations for those looking for work.4
Of course, Washington, D.C. is frequently touted as among the absolute best metropolitan areas to look for jobs, thanks to an expanding government trying its hardest to combat unemployment.5 When times get tough, lobbyists, contractors, and interest groups redouble their efforts in Washington, ensuring the money keeps flowing their way in the face of budget cut threats. Furthermore, both government and military contractors find Virginia’s and Maryland’s close proximity to the Federal District a perfect place to set up shop to sell their products and services. For these reasons, both of these Mid-Atlantic States frequently appear at the top of the list for job hunters.
(Source: Bureau of Labor Statistics)
Even though job prospects have begun to improve in select parts of the country, there are still areas with abysmal unemployment rates well above the national average (See BLS map above). Recent college graduates and workers living in these areas may have little choice but to look for greener pastures to provide an income for themselves and their families. This process can be slow, since it involves huge lifestyle changes for thousands of people. The question remains, which job seekers are most willing to face the challenges of moving to start a new life?
Staying Put: The Geographic Imbalances of Labor
A geographic imbalance of employment opportunity is a form of structural unemployment. Faced with a drop of demand for labor in one area of the country, workers are not always ready and willing to pack up and move across the nation for work. Traditional labor theory illustrates a few good reasons why many Americans looking for employment may choose to stick around and wait for the local economy to recover. 6
First off, imperfect information flows place job seekers at a disadvantage, since they may be unaware of potential job prospects located several states away. Of course, the boom in the Internet over the past several years now provides individuals looking for work with the ability to more easily locate job openings that meet their skill sets, both in their local area and around the country. This improved flow of information found online eases the burdens for both employers and prospective employees in finding each other from across the country.
There is also a direct cost involved in moving to a new area for work. For example, job seekers are faced with the decision of selling or renting out their home. With only 65.1% of Americans owning homes, according to the U.S. Census Bureau 7, it seems that for many, the direct costs associated with moving pale in comparison to the psychological cost.
Leaving both family and friends who may currently provide a significant amount of financial and personal support is not something many unemployed take lightly. For those families with two breadwinners, temporary separation because of employment has real emotional ramifications. If there are children in the equation, the absence of a parent from the home places a large burden on the parent who is left to attend the children while the other may need to move hundreds of miles away.
Go East Young Man
Age, of course, plays a big factor in an individual’s willingness to move to a new location for work. For young adults (up to their mid-thirties) who are perhaps single or recently married and have minimal financial ties to any particular location, the decision to move for employment may come more easily. Some studies even show many employed young adults are open to the idea of moving to increase their career opportunities. 8 Many young job seekers, especially those fresh out of college, may even be willing to move to a new location without any job lined up at all.
However, the story for older workers, especially those with families, can be a bit different. Older workers who have been laid off after working and living in a specific area for several years may be more hesitant to move and are more willing to sit on the sidelines waiting for the economy to recover. Faced with this difficult situation, unemployment insurance may provide laid-off workers incentive to stick around their area longer in hopes of finding work that doesn’t require them to move and abandon their local community lifelines. Either way, middle-aged and elderly job seekers have quite a bit to consider facing the unknown in search of income.
Off-hand, it would seem the young are much more willing to relocate for employment. Those with some technical background, education or skills have an advantage when moving to metropolitan areas for work. Of course, older workers can offer their years of experience to prospective employers.
Fracking operations across the country need engineers and technicians. Washington, D.C., where the private sector gathers to influence public policy, will most likely remain an area with unemployment below the national average. Military contractors in Washington and around the country need engineers and specialists. The nation’s hospitals and clinics need healthcare professionals to tend to an ageing population 9. Further, areas that attract this job growth will see a rise in local service sector employment opportunities. 10 There are jobs available, but many jobless may face difficult emotional decisions when finally willing to relocate for work.
1 Moore, Stephen. “How North Dakota Because Saudi Arabia.” Wall Street Journal. Link found at <https://online.wsj.com/article/SB10001424052970204226204576602524023932438.html>.
2 “The Top 11 States to Find a Job: Gallup.” The Huffington Post. Link found at <https://www.huffingtonpost.com/2011/03/01/top-states-to-find-a-job_n_829586.html#s247088&title=1_North_Dakota>.
3 Celeste, Rigel “Top 10 Cities to Find a Job after the Military.” AOL Jobs. April 12, 2011. Link found at <https://jobs.aol.com/articles/2011/04/12/top-10-cities-to-find-a-job-after-the-military/>.
4 Satter, Marlene. “Top 10 Cities for Educated Job Seekers.” AdvisorOne. October 7, 2011. Link found at <https://www.advisorone.com/2011/10/07/top-10-cities-for-educated-job-seekers?page=10>.
5 “The Top 11 States to Find a Job: Gallup.” The Huffington Post. Link found at <https://www.huffingtonpost.com/2011/03/01/top-states-to-find-a-job_n_829586.html#s247088&title=1_North_Dakota>.
6 Ehrenberg, Ronald G and Smith, Robert S. “Modern Labor Economics: Theory and Public Policy”. Addison Wesley, Boston. 2003, p 518.
7 Christie, Les. “Home ownership: Biggest Drop since Great Depression.” CNNMoney. Link found at <https://money.cnn.com/2011/10/07/real_estate/home_ownership/index.htm>.
8 Green, Ed. “Younger workers happier at work but still looking to leave.” Business First. October 11, 2011.
<https://www.bizjournals.com/louisville/news/2011/10/11/younger-workers-happier-at-work-but.html>
9 Department of Labor. “Employment Projections: 2008-2018 Summary.” US Department of Labor. December 10, 2009. Link found at <https://www.bls.gov/news.release/ecopro.nr0.htm>.
