An analysis published by the Ludwig Institute for Shared Economic Prosperity (LISEP) notes that Florida’s Space Coast leads the nation in the percentage of workers in living-wage jobs, buoyed by a booming tech sector and a plethora of housing. affordable.
In contrast, two West Texas regions lead the nation in “functional unemployment,” with one community approaching 50%.
LISEP published its analysis of the True Rate of Unemployment (TRU) by Metropolitan Statistical Area (MSA) for 2022, a more detailed version of its monthly True Rate of Unemployment report. The TRU tracks the “functional unemployed,” defined by LISEP as the unemployed, as well as those seeking, but unable to find, full-time employment that pays above the poverty line after adjusting for inflation.
The report found that the Palm Bay-Melbourne-Titusville MSA on Florida’s Space Coast had the lowest TRU in the nation for 2022 at 11.1%. This means that almost 90% of the labor force that works in jobs has living wages. Factors contributing to the favorable rating are based on the country’s fastest-growing high-tech presence, robust construction activity, and a more affordable rental home market.
Other MSAs ranked in the top ten for lowest functional unemployment include:
Bakersfield, CA, with 14%
· Allentown – Bethlehem – Easton PA –NJ, with 15.3%
Harrisburg – Carlisle, Pennsylvania, with 15.5%
San José – Sunnyvale – Santa Clara, CA, with 16.1%
Baltimore–Columbia–Towson, MD, with 16.8%
Washington–Arlington–Alexandria, DC-VA-MD-WV, with 17.4%
Charleston-North Charleston, South Carolina, with 17.6%
Raleigh, North Carolina, 17.7%
· Nashville- Davidson – Murfreesboro – Franklin, Tennessee, with 17.9%
The report indicates that at the national level, the TRU was 22.9% for the month of February 2023.
At the opposite end of the spectrum, the South Texas McAllen-Edinburg-Mission MSA had the highest percentage of workers unable to find a living wage job among the 100 most populous MSAs at 46.8%.
While the region has seen growth in the workforce, job gains have been concentrated in low-paying and less stable sectors, such as leisure and hospitality (11.1% increase), while more stable sectors, such as manufacturing, lost 1.4% of their staff.
Similarly, another West Texas region, the El Paso MSA, ranked among the highest for functional unemployment, with the second-highest TRU among the 100 most populous MSAs at 31.7%.
Other MSAs in the top 100 with the highest TRU are:
Dayton, OH, with 31.5%
Spokane-Spokane Valley, WA, with 29.7%
Greensboro – High Point, North Carolina, with 29.4%
· Rochester, New York, with 28.3%
New Orleans – Metairie, LA, with 28.1%
Buffalo – Cheektowaga – Niagara Falls, New York, with 28%
Lakeland – Winter Haven, Florida, with 27.5%
Madison, WI, at 27.1%
“The stark disparity between these regional statistics, where 90% of workers have a living wage in one region and another where nearly half are functionally unemployed, tells a strong and compelling story,” said Gene Ludwig, LISEP president.
“We are not a single national economy where a single economic policy will have uniform and positive results. It is important that policymakers are aware of these disparities and dig deeper into this data to understand what is working, and perhaps more importantly, what is not working, when making decisions that may disproportionately affect one region over another.” Ludwig added.
For more details about the report, go here.
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