As shown by the bidding process for the new Amazon headquarters, states and cities will do just about anything to attract a high-income, highly educated workforce. The benefits of doing so are obvious: those workersâ high incomes create demand for many other ancillary services and products boosting the overall employment level. Additionally, from the local governmentâs perspective, these workers create a reliable tax base.
Where these companies and workers decide to move says a lot about their preferences today. But maybe more importantly, where these workers decide to move reveals which states may be the economic winners of tomorrow.
In order to understand these trends, we utilized migration data from the Integrated Public Use Microdata Series (IPUMS). Using this data set, we found out which states workers with bachelorâs degrees (ages of 25 to 65) were moving.
Florida tops our rankings, netting nearly 19,000 workers over the 2016-17 period we measured. The next-highest net gain was just under 14,500, in Texas. But the Southeast had other winners in the top 10: North Carolina (No. 5) and South Carolina (No. 9).
Those with the lowest influx of educated workers are more common in the central and eastern parts of the country. States around the Great Lakes â Wisconsin, Illinois, Indiana, Ohio â fared poorly in our rankings, though Michigan came in at No. 15 overall. In the Northeast, meanwhile, New York came last in our rankings, with a net flow of -23,007 workers. Massachusetts (-7,223) and Pennsylvania (-5,371) also found themselves in the bottom five.
Southeastern states were a mixed bag â Louisiana, Mississippi, Alabama and Georgia are in the red, while Florida and North Carolina land the first- and fifth-best spots on this list, respectively.
With over 60,000 educated workers flowing into the state, Florida is the ultimate hot-spot for workers who have relocated. And when you look at the stats, itâs easy to see why.
The median household income for those who live within the state is just over $50,000. Nearly 65% of residents own their homes, which have an overall median value of about $180,000. Plus, only about 3.5% of the overall population are unemployed, as of March 2019.
The cost of living is relatively affordable, too. Homeowners with mortgages pay about $1,400 per month on housing, while renters pay $1,077 per month.
Coming in with a higher influx of Bachelor-degree holding workers than Florida (but a lower overall net), is Texas. The Lone Star State boasts a median household income of about $57,000 per year, and it has an overall unemployment rate of just 3.8%. Its housing costs for renters are also a bit cheaper than the No. 1 state on this list, coming in at $952 per month. Itâs also worth noting that Austin was the third most-popular destination for millennials on the move, according to our ranking of millennial boomtowns.
Colorado is another popular destination for workers moving out of state.
Working women in the Denver metro area, for example, are doing well there â an impressive 65.4% of women have employee-provided health insurance, about 40% of managers are women, and just 4.2% are unemployed, according to our study on the best cities for working women. In fact, the metro area earned the fifth-best ranking for those workers, compared to other U.S. cities. Itâs also popular among millennials â Denver experienced the second-largest influx of that demographic, compared to other cities, between 2011 and 2016.
Home to vast deserts and the Grand Canyon, Arizona is also experiencing an influx of workers. Itâs a popular place for homeowners â 63.1% of Arizonans own their home, and the median value for those homes is $193,200. Renters, on the other hand, pay an average of $972 per month for their spaces. Compared to the overall average household income for state residents, which is a little more than $53,000, that accounts for about 20% of annual earnings.
Arizona is also a good option when you consider high-interest debt. Our study on U.S. credit card debt found that Arizona residents tend to carry less credit card debt ($4,299.70) than the average American ($6,358). However, it does have a slightly higher unemployment rate (5.0%) than you would find in Florida (No. 1) or Texas (No. 2).
Rounding out the top five, North Carolina has proven itself to be a popular destination for workers who move across state lines. And it does have some desirable factors going in its favor.
Unemployment (which stands at 4.0% as of March 2019) has been on a steady decline since the recession. And the median household income is comparable to what you might find in Florida (No. 1) or Arizona (No. 4). Plus, residents enjoy an average commute of fewer than 30 minutes.
However, itâs worth pointing out that the state is also home to the lowest-ranked metro area for working women â its most populous city, Charlotte â with gendered underrepresentation in leadership roles.
The figures below are based on the number of bachelorâs degree-holding individuals who have moved across state lines, either in or out of a particular state. Net flow is calculated by taking the total âmoving inâ minus amount of those âmoving out.â Entries are also listed in order of net flow, from the most popular to least popular states for educated workers.
Interestingly, the top-five states are the only ones on this ranking which achieved five-figure net flow status. And all states which fall below the 23rd-best rated option (Arkansas) have a negative net flow, meaning more people are leaving than coming in.
Itâs also worth noting that the moving-in and moving-out figures vary quite a bit from state to state. Georgiaâs (No. 38) moving-in figure, for example, is nearly 30,000 (which is more than some of the top-ten ranking states on this list), while Vermontâs (No. 26) moving-in figure is just 2,003.
Moving almost always brings up a mix of excitement and nerves. But for those who arenât sure if they can afford the expense, it tends to lean more toward nerves. While tight finances, or a lack of funds, arenât ideal when contemplating that kind of life change, there are ways to make it work.
Creating a budget and starting to save is the best first step if your move is still a ways off. Some of the usual expenses that renters should plan for include:
Delaying your move to give yourself time to save can help avoid taking on debt â but that isnât always possible. Still, if youâre willing to do a bit of work, you can minimize your expenses through other means.
If youâre planning on using professional movers, for example, itâs vital to shop around for the best rate by asking for estimates from local companies (while youâre at it, check out reviews to make sure your items would be in good hands.) Curbing personal spending is another thing to keep in the front of your mind as you come up to your move date. Itâs also worth checking out other options, like having family members pitch in with packing supplies or transportation, renting a moving truck instead of using movers, or opting to move on during the week rather than during the weekend (or around a holiday).
Itâs also a good idea to consider asking your employer if they would be willing to cover some of your relocation costs, especially if youâre moving for a new job or you have a good track record with your current company. While approval for that certainly isnât a guarantee, it is possible and can help you save, so it may be worth the ask.
For those with strong credit, a personal loan might be a good option to fund your move. In general, the better your credit, the better the loan terms youâll qualify for, and the less it will cost you to borrow. Personal loans can help you avoid putting large balances on a high-interest credit card and thereby save you money, long-term.
However, they arenât a fix-all: Youâd still have to qualify first, then pay interest charges and keep to the monthly repayment schedule to avoid late fees. But for the right borrower, they can provide a bit of breathing room and help get your move funded, faster.
In order to find where educated workers are moving, researchers analyzed IPUMS migration over the 2016-17 period. Specifically this analysis tracked the movements of people in the workforce who moved across state lines. Researchers compared the number who moved into a state to those who moved out of the state. The states were then ranked by net flow (the difference between immigration and emigration).
Statistics on individual states comes from the United States Census Bureau and the Bureau of Labor Statistics, unless otherwise noted.
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