Local joblessness has persisted because of persistent job loss

A common explanation for continued economic hardship and unemployment in many cities in the U.S. is workers’ lack of ability or desire to move. In new research which examines more than 722 ‘commuting zones’, Michael Amior and Alan Manning find that many cities which have endured declining employment have also experienced large population outflows, but because of continued industrial decline, there has been little change in the local employment rate. They argue that while firms might be attracted by these cities’ low wages and slack labor markets, these advantages are ultimately undone by the large migratory outflows, which reduce the supply of labor and demand for local services.