Worker Exodus from Major US Cities

New York City, Los Angeles, and their nearby areas have experienced a significant outflow of workers who are relocating to more affordable regions to the south and west, largely due to skyrocketing living costs.

In 2023, LA, alongside Long Beach and Anaheim, reported a total net loss of 17,477 workers, as noted in a Market Watch Analysis based on data from the US Census Bureau.

New York, including Newark and Jersey City, was not far behind, with a net loss of 15,940 workers, according to government statistics.

Experts have indicated that many are heading to warmer climates in the Sunbelt, primarily motivated by the differences in living costs. It seems, however, that even in regions known for affordable housing, prices are rising, often outpacing income levels.

The data reveals that the median income of the 1.43 million individuals who left the New York area was $95,220.

In the case of Los Angeles, nearly a million residents departing had a median income of $91,960.

“Living standards aren’t necessarily matching previous income levels. Years ago, the areas with the best pay also had more affordable housing,” a researcher pointed out. “Now, the patterns of relocation don’t quite support that idea.”

In contrast, Dallas emerged as the leading city for attracting new workers in 2023, adding 16,903 residents. Other cities that saw gains included Houston with 11,954 new workers, Jacksonville, Florida, at 10,558, and the Nashville area with 10,492.

It’s worth noting that all the top 15 metro areas attracting workers this year are situated in the southern and southwestern United States, covering places in Texas, Florida, Arizona, and Tennessee.

This analysis only tracks US workers, so it doesn’t account for the broader migration trends, which include the unemployed, retirees, or families with children, nor does it delve into the effects of increased international migration.