Staying Put

Rise in American Immobility

By Erica Rascón on Jan 1, 2018 in News

Americans are not moving and no one can pinpoint why. Without a clear cause, the trend is difficult to reverse, as are its effects on the economy and workplace productivity.

United States Census Bureau data reveals that only 21.7 percent of renters relocated in 2017. That’s a new historic low. Homeowners moved at a rate of 5.5 percent, a smidgen higher than last year but not enough for analysts to breathe a sigh of relief.

Reports from the last three decades depict a decline in relocation for renters and owners. As to be expected, sharp drops occur during economic recessions, yet moving rates have not recuperated since The Great Recession.

An article in the New York Times dives into a few reasons why Americans are staying put, caused by—or a result of—an unfavorable employment environment.

Every age group, every educational level, and every industry has experienced severe declines in job turnover and employee mobility reports the Federal Reserve Board.

In 2017, The US Census Bureau documented that only 9 percent of families relocated due to a new job or job transfer. That’s a sharp decline from 19.4 percent cited in 2013.

While analyst Betsey Stevenson of the University of Michigan proposed that people aren’t moving or changing jobs because “they’ve all found jobs that are great for them and they’re happy,” it’s more likely, she admits, that “people stay in jobs that aren’t as good for them because they’re terrified of changing, and that’s bad for the overall economy.”

Workers are staying with the same employers and climbing the ladder more slowly than before. Worker fluidity decreased from 10 percent to 15 percent between 1980 and 2013. Those figures are conservative. Some studies place the modern percentage closer to 25 percent.

States such as Washington, Montana, Idaho, Oregon, and South Dakota experienced the deepest declines in fluidity. In contrast, North Carolina, South Carolina, New York, New Jersey and Illinois were the most active states though still lacking their previous vigor.

Baby Boomers may have a notable impact on the lack of fluidity as well as changes in renter and homeowner mobility. As Boomers age, they are less likely to relocate or switch jobs.

The effect of women on the workplace has mixed influence. Some claim that more women have entered the workforce, resulting in fewer couples that are willing to relocate since both partners must find a new job in the new location.

Yet the amount of women entering the workforce has declined since 2000. The cause, The Detroit Free Press suggests, is that mid-income jobs are hard to come by and even entry-level jobs pay less than before. Female-prominent industries such as home health care services and social assistance have only seen wages increase by $2 since 1990. That includes adjustments for inflation.

With fewer women employed, worker fluidity and relocations should have seen greater increases. That is not the case.

The truth is that analysts are not certain why fluidity and moving rates have declined. The cause is likely a combination of factors. Yet without understanding the causes, the nation may have hit a wall in economic growth and workplace productivity.