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Metro Area Industry Composition and Employment Prospects for Workers of Varying Skill Levels

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Background

  • Unemployment rates vary substantially across regions and cities (Elhorst, 2003).
  • Industry composition affects regions’ economic growth and unemployment rates (Izraeli and  Murphy, 2003).
    • Regions with more industrial diversity have greater economic growth and lower unemployment rates (Elhorst, 2003).
    • Regions with high concentrations in manufacturing have slower employment growth and larger employment  declines (Owyang et al., 2006; Drucker, 2009).
  • Regional policymakers strive to grow or attract specific industries as a way to improve their local economies (Barkley and Henry, 2005).

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Page Last Revised - October 8, 2021
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