Despite the American Southeast being "ground zero" for the most recent recession and the burst of the housing bubble, its economy has rebounded well and is actually growing rapidly, especially in the job market. In fact, Florida, Georgia, North Carolina, and Tennessee are among the highest ranked states in terms of job growth.
While the job market in these states is expanding, the labor force participation rate is decreasing. The article provides various reasons as to why this may be the case. First off, it is commonly known that many people flock to the south after retirement. It is very likely that a large portion of those who are not participating in the labor force are retirees from other states that decided to settle down in the south. There are also a great deal of ex-convicts in this region. It is very difficult for these people to find firms that will accept their application for employment, which will ultimately lead them to discontinue their job search. In addition, large numbers of people are leaving rural areas and flocking to urban areas in the region. This leaves jobs open in the rural areas that are so common in the southern region.
These conditions leave the south's already booming job market with many more available positions. It is crucial for the region to attract people from other areas of the United States to help increase there struggling participation rate. I believe that if the region has a vast potential for overall economic growth. If it can attract new laborers of various education levels to fill the current openings, then consumption will increase. This will increase production in the region and will help the job growth rate to continue trending upwards and the economy of the southeast will flourish.
https://www.cnbc.com/2017/09/06/american-southeasts-job-market-booming-but-workforce-isnt-growing.html
It would be interesting to find out what kind of jobs are becoming available.
ReplyDeleteStates including South Carolina and Florida have a large amount of employment that requires less than a high school education. It hangs out around 30%.
https://www.bls.gov/careeroutlook/2014/article/education-level-and-jobs.htm#top
I think that the labor force participation rate will certainly increase due to the extreme weather that the South is currently experiencing. Plenty of jobs will become available in the upcoming months and years as southern states like Florida, Georgia, and the Carolinas rebuild lost infrastructure.
ReplyDeleteIt is possible the LFPR will remain the same as well. Many contractors and builders from around the country will migrate south to help with the relief efforts, as the locals will not have the resources to rebuild on their own. Additionally, those locals affected who do not work in construction would be out of work for even longer, so it is not necessarily a given it could increase.
ReplyDeleteI do think that the LFPR will increase. Because of all the destruction the weather has brought to the south it should hopefully be able to open up jobs for construction to help rebuild what ever has been destroyed.
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