An Analysis of Regional Employment Growth, 1973-85.

Abstract

Shifts in US regional economic performance and job growth generally have been from the Snowbelt to the Sunbelt; however many factors can alter regional advantage often suddenly. The 1st section of this article describes some of the changes in regional employment over the past decade or so with particular emphasis on the industrial components of those changes. The 2nd section examines some of the reasons for dramatically uneven regional employment growth focusing on such aspects as population and business migration regional income inequality and economic shocks. Finally because New England has done the most in recent years to break the stereotype of the Snowbelt versus Sunbelt economies some of the causes of the resurgence of the regions economy are examined. Over the last decade the US has seen a continuation of the long-term trend of employment and population shifts from much of the Northeast and Midwest to the South and West but the recent poor performance of the East South Central region and the economic rebirth of New England demonstrate that the shift in economic power from Snowbelt to Sunbelt is far from immutable. Many of the factors that have made the South and West so attractive to both firms and individuals are becoming less pronounced. Interregional differences in wages and cost of living have narrowed as have differences in nonpecuniary factors of urban life--population density pollution crime and congestion. Just as much of the North is affected by a declining tax base and aging infrastructure some areas of the South have been unable to keep pace with the growing demands for new infrastructure. Water availability may be the limiting factor in the Southwests growth.