Several States Have Potential to Exploit Their Competitive Advantage, According to New Report

A larger number of states are positioned to capitalize on rising employment due to high-growth industries, according to a new report from Wells Fargo's Economic Group — Employment Dynamics and State Competitiveness. These states (i.e., Georgia, North Carolina, Arizona, Virginia and Texas) have been able to couple several high-growth industries with a skilled workforce to build their competitive advantage. The report utilized 20 years of employment data in 25 major industries to project industries that are likely to see high employment growth nationally, including finance & insurance, professional & technical services, accommodation & food services, other services and healthcare & social assistance industries. The researchers also found that more than a majority of states (more than 26) possess a competitive advantage in at least 16 of the 25 industries. However, the effects of the Great Recession may severely hinder some states' ability to capitalize on their competitive advantage due to limited worker mobility (e.g., Florida). The report advises policymakers to focus on long-term workforce training programs and focus resources on selected industries that maintain competitive advantages. Read the report...