According to the report, Republican-controlled states such as Florida, Texas, Utah and the Carolinas have recovered more quickly from the pandemic than Democratic-leaning states, which have seen residents and businesses flee to lower-tax havens.
Federal data show that red states saw their share The number of total jobs in the US has been increasing since February 2020, a month before the start of the coronavirus pandemic. According to the Wall Street Journal.
The Journal cites statistics from the Brookings Institution showing that GOP-controlled states have added 341,000 jobs over the past two and a half years.
During that period, blue states lost about 1.3 million jobs.
Moody’s Analytics also analyzed migration data beginning in February 2021, a one-year period in which 46 million people moved to a different zip code.
The states with the biggest gains in net migration were Florida, Texas and North Carolina — each of which voted for Republican presidential candidate Donald Trump in the last two elections.
losing states the largest number of inhabitants It was California, New York, and Illinois, all of which are governed by Democratic-majority legislatures and Democratic governors.
Analysts said the migration could be explained by the need to close offices and work remotely due to the spread of the coronavirus.
Workers no longer tied to their cubicles could move to states with warmer climates, cheaper housing, less dense populations. low cost of living while continuing to work remotely.
Before telecommuting, employees were drawn to the location of companies’ offices. But the pandemic gave workers a choice of where to live, prompting a mass migration away from major coastal cities.
The researchers found that people were also motivated to move to areas where it was cheaper to buy a home.
Housing costs in the 10 states with the most American Transplant Institute locations were 23% lower than in the 10 states that lost the most residents.
The 10 states that gained the most immigrants have an income tax rate of 3.8%—compared to an 8% income tax rate for the 10 states that lost the most residents.
The four states that gain residents—Florida, Texas, Tennessee, and Nevada—have no income tax.
Not only are workers going to the Sun Belt, but their bosses are following them.
Companies are also moving from blue-leaning states to red states to take advantage of lower taxes.
Attracting firms from high-cost states, Tennessee saw its economy grow 8.6% last year, the highest in the nation. As a result, the state saw an all-time low unemployment rate of 3.2% in April.
