Two Texas
regions among the worst for low- and middle-income workers
WASHINGTON, May 3, 2024
/PRNewswire/ -- The Denver region
was ranked as the national leader for living-wage jobs, while two
Texas markets posted worrisome
"functional unemployment" rates of well over 30%, according to a
new Ludwig Institute for Shared Economic Prosperity (LISEP)
analysis.
The Ludwig Institute for Shared Economic
Prosperity reports the functional unemployment rates of the 100
largest metros.
LISEP today released its 2023 True Rate of Unemployment (TRU) by
Metropolitan Statistical Area (MSA) analysis — an in-depth study of
the TRU for the nation's 100 most populous MSAs. TRU tracks the
"functionally unemployed," defined by LISEP as the jobless, plus
those seeking, but unable to find, full-time employment paying
above poverty level, pegged at $25,000 a year after adjusting for inflation.
LISEP's MSA analysis considers both the TRU, as well as TRU Out of
the Population (TRU OOP) — a metric that measures the functional
unemployment rate of the entire working-age (16+) population, a
better indicator of overall labor-market strength.
With the nation's second-lowest TRU — at 16%, down two
percentage points over last year — the Denver-Aurora-Lakewood MSA featured growth in
higher-paying education and health-services jobs, along with a
higher citywide minimum wage, according to LISEP. Education and
health services grew by 3.4%, with government jobs growing by 6%.
The region also had the nation's lowest TRU OOP, thus earning the
top ranking.
Other MSAs leading the nation with low functional unemployment
rates are Washington-Arlington-Alexandria, DC-VA-MD-WV, ranking second,
followed by Nashville-Davidson-Murfreesboro-Franklin, TN; San
Jose-Sunnyvale-Santa Clara, CA; Minneapolis-St. Paul-Bloomington, MN-WI; Kansas City, MO-KS; Richmond, VA; Raleigh-Cary,
NC; Dallas-Fort
Worth-Arlington, TX; and
Virginia Beach-Norfolk-Newport
News, VA-NC.
At the opposite end of the spectrum, the McAllen-Edinburg-Mission,
TX, MSA remains at the bottom of the list with the nation's
highest TRU at 48%, unchanged from last year. This means nearly
half of the workforce is unable to find living-wage jobs. LISEP's
analysis noted two key factors contributing to
McAllen-Edingburg-Mission's struggles: the region's prevalence of
low-paying industries and a low educational attainment level.
Nearly 35% of the population aged 25 and over has no high school
diploma.
Also on the list of regions with high functional unemployment
rates is the El Paso MSA, fourth highest at 32%. Like McAllen, El
Paso also has a concentration of low-skill jobs with notable
declines in manufacturing positions over the past year. Other MSAs
with the nation's highest functional unemployment rates include
Fresno, CA (second); Dayton-Kettering,
OH (third); Springfield, MA
(fifth); followed by Greensboro-High
Point, NC; New
Orleans-Metairie, LA;
Buffalo-Cheektowaga, NY; Tucson, AZ; and Akron, OH.
"Our data again reveal crucial dynamics at play. Local
communities investing in infrastructure, housing, and
future-oriented industries consistently outperform those more
reliant on low-wage jobs," said LISEP Chairman Gene Ludwig. "These findings show that some
regions are enabling middle- and working-class families to thrive —
while others grapple with financial security."
Ludwig also pointed to President Joe
Biden's recent announcement of a new "place-based" economic
strategy, which acknowledges the uneven economic landscape across
the country, with some communities thriving while others struggle.
The strategy aims to direct resources to the areas where they are
needed most. That, Ludwig said, is a step in the right
direction.
"Breaking the U.S. economy down into individual, local economies
gives us a clearer picture of these contrasting realities," Ludwig
said. "The challenge for policymakers lies in embracing real-world
data to craft workable solutions — which begins with a clear
picture of what works, what doesn't, and what's needed."
A full breakdown of the True Rate of Unemployment by
Metropolitan Statistical Area is available at
www.lisep.org/local.
About TRU
LISEP issued the white paper "Measuring
Better: Development of 'True Rate of Unemployment' Data as the
Basis for Social and Economic Policy'' upon announcing the new
statistical measure in October 2020.
The paper and methodology can be viewed here. LISEP issues TRU
one to two weeks following the release of the BLS
unemployment report, which occurs on the first Friday of each
month. The TRU rate and supporting data are available on the LISEP
website at https://www.lisep.org/tru.
About LISEP
The Ludwig Institute for Shared Economic
Prosperity (LISEP) was created in 2019 by Ludwig and his wife,
Dr. Carol Ludwig. The mission of
LISEP is to improve the economic well-being of middle- and
lower-income Americans through research and education. LISEP's
original economic research includes new indicators for
unemployment, earnings, and cost of living. These metrics aim to
provide policymakers and the public with a more transparent view of
the economic situation of all Americans, particularly low- and
middle-income households, compared with misleading headline
statistics.
About Gene Ludwig
In
addition to his role as LISEP chair, Gene
Ludwig is a managing partner of Canapi LLC, a financial
technology venture fund. He is the founder and CEO of Ludwig
Advisors, which counsels financial firms on critical matters.
Ludwig is also the founder of the Promontory family of companies.
He is the former vice chairman and senior control officer of
Bankers Trust New York Corp. and served as the U.S. Comptroller of
the Currency from 1993 to 1998. He is also author of the
book The Vanishing American Dream, which investigates the
economic challenges facing low- and middle-income Americans. On X
(formerly Twitter): @geneludwig.
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SOURCE Ludwig Institute for Shared Economic Prosperity