Shifting Geographic Job Distribution May Be Long Term
Jobs flowed out of cities during the pandemic, and they may not be moving back.
The COVID-19 pandemic has notably impacted what kind of jobs are available and where, according to an analysis by the Federal Reserve Bank of New York. This shift could signal a long-term transformation in the geographic distribution of jobs.
Job listings have shifted away from city centers toward the fringes of large metro areas, smaller metro areas and rural areas. At the same time, computer and mathematical as well as business and financial operations occupations have gotten a boost for job openings in sales, office and administrative support, food preparation and healthcare occupations. The geographical and occupational shifts were interconnected, with the biggest declines in job listings by occupation occurring in the largest and densest geographies and the strongest increases in job listings by occupation occurring in the smaller and less populated geographies, according to the analysis.
The proportion of overall job listings originating from large central metros — counties with populations over 1 million at the center of a commuting area — decreased from about 46 percent of all listings before the pandemic to about 38 percent of all active job listings in the post-pandemic period. In contrast, large fringe metros — counties with populations over 1 million that commute to a large central metro — had stable job listings. The share of job listings in medium metros, small metros and micropolitan areas rose by about seven percentage points compared to the pre-pandemic period. This significant shift highlights a reallocation of labor demand away from the largest urban centers toward smaller and more peripheral areas, said the report.
Looking at both occupational and geographical shifts together, the analysis found that decreased job listings for high-skilled workers in technology and financial roles are most concentrated in large cities and their commuting zones. This could be due to increased remote work, which has shifted the population away from city centers and created a need for more healthcare and food service workers in fringe, medium and small metros where more people may be living and working in the post-pandemic period.