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Isabella Torregiani
Guest
(Tom Rumble/Unsplash)
For decades, relocating for work or better opportunities was common for thousands of Americans. However, today, rising housing costs, job insecurity and other barriers have made moving harder than ever. That slowdown in mobility is leaving people stuck β and putting pressure on wages, housing and long-term economic growth.
Growth slowing down
When people canβt move, the economy slows down. (Tech Daily/Unsplash)
This stalled movement has economic ripple effects. When people canβt relocate to take better jobs or buy homes, the economy loses momentum. Families canβt upsize, retirees canβt downsize and first-time buyers often canβt buy at all. Companies also suffer. Hiring people across state lines becomes harder, and productivity drops when roles go unfilled. βDeclining mobility is a big deal in so many dimensions,β said Chang-Tai Hsieh, a professor at the University of Chicago. His research links expensive housing to lower worker mobility β so much so that itβs dragged down U.S. GDP over time. That link, seen from 1964 to 2009, likely still rings true.
Job prospects
Early job success shapes young adultsβ careers. (Rut Miit/Unsplash)
For young adults, especially recent graduates, landing a strong job early can set the tone for their entire careers. When they donβt, the income loss can be hard to recover, further widening the gap between those who get ahead and those left behind.
Record low
American mobility has dropped, with local moves down. (Zac Gudakov/Unsplash)
In the 1950s and β60s, about 1 in 5 Americans moved each year. However, by 2019, just 9.8% were relocating annually. The COVID-19 pandemic caused a short-term spike in migration, but it didnβt last. By 2023, the U.S. hit a historic low when only 7.8% of people moved, the smallest share since the Census Bureau began tracking it in 1948. That figure stayed about the same in 2024. Moves within the same county have seen the sharpest decline, down roughly 47% over the past 30 years.
Fear of layoffs
Fewer people take job risks in todayβs uncertain market. (Austin Distel/Unsplash)
In an uncertain job market, fewer people are willing to take risks, especially when it comes to switching jobs. A New York Fed survey found that workers are less optimistic about quickly finding new employment if laid off. According to a recent Indeed poll, half of respondents said theyβre staying in jobs they donβt love to avoid being the first to go if layoffs hit. This creates an βinsider-outsider divide,β said Guy Berger, senior fellow at the Burning Glass Institute. That divide keeps current employees locked in place, while job seekers wait on the sidelines, struggling to break in.
The post Stalling mobility in the U.S. threatens the economy appeared first on Knewz.
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