We set out to create a measurement to judge the quality of regional low-skilled labor markets. As the United States has transitioned from a manufacturing to a service economy, many well-paid low-skilled jobs have been lost to cheaper overseas competition while real wages for American workers have barely kept up with inflation, even as GDP and productivity rose significantly. The cost of living has also increased as well.
We designed an index to measure each of these three conditions:
- High wages relative to the cost of living
- High numbers of jobs relative to the unemployed population in that area
- Relatively little interest in these jobs
We found that as expected, coastal areas are relatively unaffordable to low-skilled workers, and there are relatively few jobs relative to the unemployed population along with high interest in those jobs. However, much (but not all) of rural America, especially the Mideast, have high wages for unskilled workers, with plentiful jobs and less attention. While we acknowledge that moving to an entirely new region may be unfeasible for many, perhaps towns could provide tax relief or subsidize the cost of moving. In any case, we have shown that there are places in the United States friendly to unskilled workers and their families, contrary to popular belief.