Workers seeking new opportunities are flocking in droves to five particular states, a new report has found.
The National Association of Realtors (NAR) has found that Virginia, Texas, Tennessee, Georgia and South Carolina are drawing in the most workers, according to data from the third financial quarter of 2023. The report says these states are proving a big attractions “thanks to their strong job markets, relatively lower living costs, and attractive business environments.”
Other states are not benefitting from workers moving in, with the biggest exodus taking place in California, which has a net migration rate of minus 18,485, far surpassing that of second-place state Illinois, with minus 4,598 as of the third quarter of 2023. “High-cost states like California and New York are seeing net outflows as workers seek more affordable living options without sacrificing career growth,” NAR said in its report.
Stephanie Alston, president at recruitment company BGG Enterprises, told Newsweek there are several factors impacting workers’ desires to up sticks and find new opportunities across the country away from major employment hubs like California.
“States experiencing better economic fortunes, like Texas or Florida, offer a mix of lower living costs, competitive salaries, fewer regulations, and growing job markets,” she told Newsweek.
Newsweek
Virginia
Virginia has enjoyed the biggest boom in workers relocating, with net job migration of 7,191 in the third quarter of 2023.
A significant portion of these job switchers are from across the northern border in Maryland (18 percent) and the District of Columbia (12 percent). Other states contributing to Virginia’s workforce include Florida (8 percent) and Texas (6 percent).
Texas
Texas isn’t far behind Virginia, with 7,036 net job migrants. California is the top state from which inbound workers are coming from, 12 percent of all movers, “as many Californians seek more affordable living options,” followed by Florida (8 percent) and Louisiana (8 percent), as well as Oklahoma (5 percent).
Numerous notable companies have moved some or all of their operations to the Lone Star State recently, including Elon Musk’s aerospace company SpaceX and electronic behemoth Apple.
In August, oil giant Chevron Corporation announced it was also relocating from California to Texas by the end of this year, with CEO Mike Wirth telling the Wall Street Journal: “We believe California has a number of policies that raise costs, that hurt consumers, that discourage investment and ultimately we think that’s not good for the economy in California and for consumers.”
Alston said that California’s “regulatory environment, business taxes, and high personal income tax rates” are all “frequently cited as reasons for both businesses and workers to leave.”
“Many companies are relocating to states like Texas, Tennessee, and Florida, which offer no state income tax and a more favorable business climate, creating a domino effect on worker migration patterns.”
Tennessee
Job switchers have also flocked to Tennessee, with a net migration rate of 6,295. According to NAR, 12 percent of the workers flowing in to the Volunteer State inflows are from Georgia, while 10 percent made their way over from Florida.
NAR said Tennessee’s “growing sectors, such as manufacturing, healthcare, and logistics” are to thank. “Areas like Nashville and Memphis have strong job creation, making Tennessee an attractive destination for job switchers.”
Georgia and South Carolina
South Carolina’s net migration rate for the same period comes in at 5,992, higher than its neighbor Georgia with 5,006 workers.
