Economy question?

Question

I found out that if a city has a poor economy, (Like Cleveland, Detroit, Buffalo for example), It is hard to find a good paying job even if you have a good education.

So does that mean, if a city's economy is booming, (Phoenix, Atlanta, Dallas), it's easier to find a well paying job with a poorer education?

Is that how it works?

Answer 1

Yes in general...it's a matter of the law of supply and demand.

If the demand for labor is high, it could outstrip the supply for quality labor. (Quality is educated, experienced, and motivated workers) So the hirers have to lower their standards to fill their labor requirements from the local labor supply.

Or they might widen their labor market area, in which case they are likely to raise hiring offers to attract people from out of town. In which case, even the locals would benefit because hiring offers would go up in general for everyone.

If the supply is high, out running demand, the available labor pool will be flooded. So hiring companies, when they do need someone, can shop around until someone is desparate enough to accept a low ball offer. And that will lower expectations for hiring offers for everyone else still in the labor pool.

By the way, quality work is not a guarantee a worker will keep a job once hired. Company needs change; so if there is no longer a match for a worker's education, experience, and motivation, the worker will be fired. The best job security feature for any worker is felxibility...the ability to do other kinds of job through a wide and varied education and experience.

Answer 2

In general, the answer is yes, if an economy is near full employment, employers will often take a chance on a less than ideal candidate and help to train them, because they do not have alternatives on the open market.

It is not universally true, however. A lot of areas with strong economies also have strong educational infrastructure, so even though unemployment may be low, there might be a steady stream of qualified candidates for many jobs. The reverse is also true -- I manage a plant in the Mississippi Delta -- where unemployment is over 12%, but the educational system has serious issues and even with that high rate it can be challenging finding candidates for jobs that require a high degree of technical education.

Answer 3

I just want to point out that what your asking is an empirical questions, but most people answered here with theoretical responses. That is, no one here has read any studies showing this to be true or false.

Perhaps what you are looking for is a theoretical answer, which is fine: I would agree with most people that this correct.

Answer 4

Might be but just because its harder in one place it never really indicates its easy but it just might be true

Answer 5

sounds like it makes sense to me....