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Brookings provides a reminder that one way or another, there's a problem that needs fixing: Unemployment is stubbornly high, while in some places there's a shortage of skilled and educated workers. Clearly, there needs to be a better way to connect jobs and people.

Traditionally, this problem has been solved quite simply. People move to within what they consider a reasonable commute to their job. However, the housing crisis has temporarily put a wrench in that because people are underwater on their mortgages or otherwise unable to sell their house and move to where the jobs are. This situation will eventually resolve itself so I wouldn't make long term transpo infrastructure investments on the basis of trying to solve this problem.

The long term solution is for employers to move to more central areas so they can access a wider pool of specialized workers. We're seeing this trend play out, hence the substantially lower vacancies for urban properties vs. suburban ones and the concentration of new construction activity in urban areas.

by Falls Church on Jul 12, 2012 9:56 pm • link • report

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