Metro Movers: Where Are Americans Moving for Jobs, And Is It Worth It? - Andrew Chamberlain, Ph.D., Chief Economist, Glassdoor
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RESEARCH REPORT Metro Movers: Where Are Americans Moving for Jobs, And Is It Worth It? Andrew Chamberlain, Ph.D., Chief Economist, Glassdoor
Executive Summary • Moving for a job is a big decision. Where are job seekers in the United States applying to jobs in 2018? And what makes them more likely to move to a new city? • This study uses a large sample of more than 668,000 online job applications during a typical week on Glassdoor to illustrate real-time trends in work- related migration among the 40 biggest metros in the U.S. • While the typical job seeker on Glassdoor is highly selective and applies to 5.2 jobs per week on average, that varies widely, with many power users applying to 20 or more jobs per week. • On average, 28.5 percent of started job applications are to a new metro area. Which factors statistically drive “metro movers” — job seekers located in one metro, but start a job application in another metro — to apply to jobs and companies elsewhere? • Salary drives candidates to move. But the effect is small. An extra $10,000 higher base salary predicts candidates are about a half percentage point (0.41 percentage points) more likely to be a metro mover — a statistically significant, but small effect. • Better company culture is more attractive. Having a 1-star higher overall Glassdoor rating predicts candidates will be 2.5 percentage points more likely to move metros for a job. That’s statistically significant, and roughly six times larger than the impact of offering $10,000 higher pay. • Younger workers are more likely to move. Adding roughly ten years to an applicant’s age predicts they’ll be 7 percentage points less likely to be a metro mover. For employers who want to hire experienced candidates from other metros, recruiters may need to compensate with salary premiums or excellent workplace culture. • Men are more likely to move metros. Even after controlling for job titles, education and age, men are 3.3 percentage points more likely to apply to jobs in another metro. Employers looking to attract women need to make a conscious outreach effort — particularly for tech and engineering 3 Introduction roles, which have many metro movers. 4 Who Are America’s Metro Movers • Movers are more educated. Workers with a master’s degree are about 22 Which Job Factors Most Attract Metro Movers 4.9 percentage points more likely to be willing to move metros for a job. By 25 Conclusion contrast, those with a two-year associate’s degree are least likely to move metros for a job.
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. I. Introduction Moving for a job is an important life decision that, Glassdoor has a unique window into real-time job search for many, can open up new doors and opportunities. patterns in America today, including the factors that are According to a 2016 survey by consultancy Kelton most enticing Americans to pick up and move. This is Global, 77 percent of Americans say they’re willing to because Glassdoor is one of the world’s largest jobs and relocate for jobs, while 86 percent of Millennials say recruiting sites, with rich data on the job search process they’re willing to move for work. Among those who 1 and nearly 40 million reviews and insights on all aspects do move, jobs are a key driver. According to the Census of the workplace at companies around the world. In this Bureau, 18.5 percent of Americans who moved in study, we use a large sample of more than 668,000 online 2017 did so for job-related reasons — the third most job applications started on Glassdoor during a typical common factor, after housing reasons and changing week in January 2018 to illustrate trends in job-related family situations. 2 migration among the 40 largest metro areas in the U.S. Where are Americans moving to for jobs in 2018? What The rest of this study is organized as follows: In Section kinds of applicants are most likely to relocate between II, we present several facts about metro movers, or cities? And why are they moving for jobs — higher pay, Americans who are located in one metro, but start job better workplace culture or some other reason? applications in another metro, on Glassdoor, including top city destinations, top companies applicants are willing to While government surveys reveal patterns in where move for and the most and least mobile job seekers. In Americans are moving for work, the results often lag Section III, we estimate a simple statistical model to show years behind — making it hard to track real-time patterns which factors best predict candidates will move for jobs: in today’s rapidly evolving workforce. Plus, Census salary, company ratings, or demographic characteristics surveys only show movers’ final destination. They don’t of candidates themselves. In Section IV, we conclude and tell us anything about the top cities Americans are summarize lessons for employers aiming to attract metro seriously considering when making critical decisions to movers to their open positions. move for jobs. 1. “Career Trends Report,” (2016), Question #20. Cornerstone OnDemand. Available online at https://www.cornerstoneondemand.com/sites/default/files/whitepaper/csod-wp- career-trends-report.pdf. 2. “Declining Mover Rate Driven by Renters, Census Bureau Reports,” (November 15, 2017), U.S. Census Bureau news release. Available online at https://www.census.gov/news- room/press-releases/2017/mover-rates.html. 3
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. II. Who Are America’s Metro Movers? Who are the people that will move for a job? What characteristics about metro movers on Glassdoor make them more likely to move than their counterparts within the U.S. workforce? In this section, we explain who these candidates are, how they search for jobs on Glassdoor, and provide a data-driven profile of America’s most geographically mobile job seekers today. Let’s have a look at the online labor market we observe at Glassdoor, and the trends we see within job-related migration in 2018. About the Data The data used in this study are from online job To estimate salary for each job applied to, we applied applications on Glassdoor. We use a large sample of job Glassdoor’s proprietary salary estimates model to each applications started by Glassdoor users during a typical job listing, which estimates median base pay. In addi- week from January 8, 2018 through January 14, 2018. tion, we linked each job posting to the overall Glassdoor rating for the hiring employer, allowing us to quantify The sample consists of 668,146 started job applications the workplace culture for each job applied to. Finally, from 128,221 unique users who applied to jobs using a we collected basic demographic information about job desktop computer in any of the 40 largest U.S. metros by seekers such as gender, age and education to provide a population. Overall, the sample is 59 percent male and well-rounded profile of which Americans are moving for 41 percent female, with an average age of 34.7 years. jobs today and why. Using anonymized location information, we recorded the metro location of each job seeker, as well as the lo- In this study, all personal information was statistically cation of each job they applied to, allowing us to identify anonymized — no personally identifying information of “metro movers” who are aiming to relocate for work. In any kind was used in this research. our sample, 477,848 applications were within the same metro while 190,298 were to different metros. 4
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. Why Metros? At Glassdoor, our metro areas are based on “core based By looking only at metro movers — rather than those statistical areas” or CBSAs. They are defined as a large applying to jobs across city, county or state lines — city with at least 10,000 in population, plus all nearby we’re focused on job seekers trying to migrate for jobs areas that are socially and economically linked, as between two economically different areas. Our goal is defined by commute-to-work patterns.* to measure economically meaningful job moves, which metro areas do a good job of capturing. When job seekers leave a metro area, they are leaving a well-defined economic region — not just crossing over * Core based statistical areas are defined by the into a nearby town. Because metros include large cities U.S. Office of Management and Budget (OMB) and and all nearby areas where people commonly commute are widely used by the Census Bureau and other to, those moving between metros for jobs are making statistical agencies. More information is available at a major life change — something we wanted to quantify https://www.census.gov/geo/reference/gtc/gtc_cbsa.html. in this study. A. Glassdoor’s Window Into the Job Market of America’s roughly 160 million person labor force. By observing real-time job search and application behavior, With each passing year, the online labor market more data from Glassdoor offer a unique window into what’s closely resembles the actual U.S. labor market. According happening today in the nation’s fast-changing labor market. to a 2015 study from the Pew Research Center, 79 percent of Americans who are looking for jobs do so For this study, we compiled a large sample of online job online. Among those who job search online, 28 percent applications started on Glassdoor during a typical week use a smartphone, with half of them applying to at least in January 2018 — a period after the holiday season when one job from their mobile device. Just as shopping, 3 many Americans are back at work and putting New Year’s social networking, dating and other parts of daily life have resolutions into practice by looking for new jobs online. moved online in recent years, the gap between real-world and online job search behavior is rapidly vanishing. In total, our sample includes 668,146 online job applications started on Glassdoor. What do we mean That makes information from today’s online job platforms by “started”? When users search for jobs on Glassdoor, more valuable than ever for understanding the U.S. labor they’re shown an “apply now” button for each job posting market. Glassdoor alone represents a significant share of they view (see Figure 1). A job application is started online job search activity in America, with more than anytime a user clicks that button and begins the 5 million U.S. job postings being matched up with 57 application process. Those data are the basis for the million unique visitors per month — a significant share 4 analysis in this study. 3. “Searching for Work in the Digital Era,” (November 19, 2015) by Aaron Smith. Pew Research Center report. Available online at http://www.pewinternet.org/2015/11/19/search- ing-for-work-in-the-digital-era/. 4. Source: Glassdoor internal statistics, March 2018. 5
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. Figure 1. Starting an Online Job Application on Glassdoor It’s important to note that we don’t know the final result of whether the job applicants we’ve identified actually moved to a new job. However, started job applications data show us economic intent to move, which unlike job clicks, are a much more credible signal and are less noisy than simply counting how many times an online job has been viewed or “clicked” on. Applications are costly to job seekers in terms of time and effort. Those who take the extra step of applying are typically more serious about moving for jobs than those simply browsing job listings online. Source: Glassdoor Economic Research (glassdoor.com/research/) How Americans Look for Jobs Online How often do Americans apply to jobs online? Figure 2 which roles they actually apply to after reading reviews, shows the distribution of job applications started per browsing salaries, and comparing job listings. Our week among job candidates in our sample. On average, data show there are also a small number of Glassdoor candidates apply to 5.2 jobs per week. However, the “power users”, or job seekers who applied to 20 or distribution is highly uneven. Most candidates apply more jobs per week in our sample. These are the to just one or two jobs per week. Although job seekers most active job seekers today. click on many job listings, they’re highly selective about Figure 2. Most Candidates on Glassdoor Are Highly Selective and Apply to Five or Fewer Jobs Per Week Number of Job Seekers Average = 5.2 job applications per week Job Applications Per Week Source: Glassdoor Economic Research (glassdoor.com/research/) 6
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. When it comes to where Americans apply to jobs, our Figure 3. 28.5 Percent of Job Applications Are from Metro data show most stay close to home. In our sample, 71.5 Movers Who Apply to Jobs Outside Their Metro Area percent of job applications were to jobs in job seekers’ same metro area. By comparison, 28.5 percent were to roles in a different metro area (see Figure 3). 28.5% Although as we’ll see below, even those aiming to move Applied to Job metros usually target nearby metro areas rather than in Different cross-country moves. In this study, we refer to these Metro 71.5% geographically mobile job applicants as “metro movers.” Applied to Job in Same Metro In the following sections, we’ll take a closer look at these metro movers and the types of jobs, companies and Source: Glassdoor Economic Research (Glassdoor.com/research) cities they are most attracted to in 2018. B. The Top Destinations for Job Movers What cities are most attractive to the nation’s more The megalopolis of New York City attracted the second geographically mobile job seekers? Table 1 shows the highest share of metro movers at 8.4 percent, followed top ten destinations for metro movers in America as by the Silicon Valley stronghold San Jose, then Los of January 2018, out of the 40 metros we examined, Angeles, Washington D.C. and Boston — all metros with along with the top five metro sources where these thriving job markets that attract ambitious talent. Also job seekers are moving from. among the top ten are several smaller tech hubs includ- ing Seattle and Austin, as well as larger metros that have The booming tech hub of San Francisco was the maintained relatively more affordable cost of living such top destination for metro movers in our sample. as Dallas-Fort Worth and Chicago. San Francisco alone attracted 12.4 percent of all applications by job seekers looking to move cities in In general, these top destinations attract most candi- our sample — by far the largest of any U.S. metro. dates from nearby metro areas. For example, the top Despite housing shortages and a high cost of living, sources for candidates aiming to relocate to San Francis- the San Francisco metro continues to be a hub for co are two other large California metros: San Jose and economic opportunity and a magnet for the nation’s Los Angeles. Similarly, the top sources for those aiming most geographically mobile job seekers in 2018. to move to New York City include nearby Washington D.C., Philadelphia and Boston. However, as we will explore further below, a significant share of metro movers still aim to relocate across the country for jobs. 7
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. Table 1. Top Destinations for Metro Movers in January 2018 Destination Metro Percentage of Metro Movers Top 5 City Sources of Movers San Jose, CA Los Angeles, CA San Francisco, CA 12.4% New York City, NY Sacramento, CA Chicago, IL Washington, DC Philadelphia, PA New York City, NY 8.4% Boston, MA Los Angeles, CA Chicago, IL San Francisco, CA Los Angeles, CA San Jose, CA 6.9% New York City, NY Dallas-Fort Worth, TX San Diego, CA Riverside, CA New York City, NY Los Angeles, CA 6.8% San Francisco, CA San Diego, CA San Jose, CA Baltimore, MD New York City, NY Washington, DC 4.3% Philadelphia, PA Los Angeles, CA Chicago, IL New York City, NY Providence, RI Boston, MA 3.7% Los Angeles, CA Chicago, IL Washington, DC New York City, NY Los Angeles, CA Chicago, IL 3.2% Dallas-Fort Worth, TX Washington, DC Milwaukee, WI Los Angeles, CA New York City, NY Seattle, WA 3.1% San Francisco, CA San Jose, CA Dallas-Fort Worth, TX Houston, TX New York City, NY Dallas-Fort Worth, TX 2.8% Austin, TX Chicago, IL Los Angeles, CA Dallas-Fort Worth, TX Houston, TX Austin, TX 2.3% San Antonio, TX New York City, NY Los Angeles, CA Source: Glassdoor Economic Research (Glassdoor.com/research) 8
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. C. Metros with the Most Movers For the nation as a whole, about 28.5 percent of job ap- by San Jose-based searchers were for a job in a different plications are to jobs outside of a job seekers’ metro area. metro area. That may come as a surprise to many, as San However, the number of job seekers within a single city Jose is a booming city with many tech jobs and rising pay. that are ready to pick up and move varies widely. In Table However, it’s also one facing an astoundingly high cost 2, we show the 40 metro areas we examined, along with of living, with a median home price near $1.08 million the percentage of metro movers in each. At the top of according to Zillow.5 As tech hiring spreads to many cities the table are areas with the biggest fraction of applicants beyond Silicon Valley, it’s likely competing metros are willing to move to greener economic pastures elsewhere. luring away many candidates.6 A combination of booming jobs and rising cost of living puts San Jose near the top The college town of Providence, Rhode Island topped of two lists: It’s the third most common destination for the list of metro areas with the highest percentage of candidates from other metros, but it’s also the second applicants looking to move elsewhere. In fact, 52.2 highest metro in terms of candidates looking to leave — percent of job applications started on Glassdoor by the most dynamic flow of job candidates among any city Providence-based candidates were to another metro we examined. area — the largest among the 40 cities we examined. Why? One reason is geography: Providence is a 1.5 hour Other cities topping the list for having higher percentag- drive from the large and fast-growing Boston metro. es of metro movers are Riverside, California; Baltimore, Additionally, Providence is home to several colleges and Maryland; and Sacramento, California. What do these universities — Brown University, the Rhode Island School metros have in common? For one, they are all in close of Design, Providence College and others — providing a proximity to other fast-growing metros with more steady stream of graduates applying to jobs elsewhere. robust job markets, a combination that acts as a magnet drawing away applicants. In each case, these cities are The metro with the second highest share of metro movers a 1.5 hour drive from Los Angeles, Washington D.C. and lies in the heart of Silicon Valley: San Jose, California. San Francisco, respectively. Just under half (47.6 percent) of job applications started 5. “San Jose Home Prices & Values,” Zillow (accessed March 23, 2018). Available online at https://www.zillow.com/san-jose-ca/home-values/. 6. “Beyond Silicon Valley: Tech Jobs Spreading Out of Tech Hubs,” (July 2017) by Andrew Chamberlain, Ph.D. Glassdoor Economic Research report. Available online at https://www.glassdoor.com/research/beyond-silicon-valley-tech-jobs-spreading-out-of-tech-hubs/. 9
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. Table 2. Ranking By Percentage of Metro Movers in 2018 Jobs Applied To Percentage Metro of Job Candidate Metro Movers (One Week Period in January 2018) Metro Movers Providence, RI 4,136 2,158 52.2% San Jose, CA 26,593 12,666 47.6% Riverside, CA 8,787 4,154 47.3% Baltimore, MD 9,372 4,278 45.6% Sacramento, CA 6,490 2,883 44.4% Columbus, OH 5,494 2,277 41.4% Pittsburgh, PA 6,119 2,404 39.3% Charlotte, NC 9,344 3,525 37.7% Cincinnati, OH 5,216 1,889 36.2% Cleveland, OH 4,693 1,655 35.3% Milwaukee, WI 3,497 1,230 35.2% Norfolk, VA 3,366 1,174 34.9% San Antonio, TX 5,352 1,859 34.7% San Diego, CA 13,207 4,421 33.5% Washington, DC 35,782 11,482 32.1% Orlando, FL 8,429 2,676 31.7% Philadelphia, PA 19,037 5,989 31.5% San Francisco, CA 39,798 12,481 31.4% Indianapolis, IN 5,419 1,698 31.3% Detroit, MI 11,286 3,381 30.0% Nashville, TN 4,633 1,383 29.9% Boston, MA 25,356 7,411 29.2% Tampa, FL 9,496 2,754 29.0% Kansas City, MO 5,832 1,656 28.4% Dallas-Fort Worth, TX 34,261 9,618 28.1% Phoenix, AZ 14,491 4,044 27.9% Portland, OR 7,523 2,031 27.0% St. Louis, MO 6,365 1,695 26.6% Denver, CO 11,671 3,094 26.5% Austin, TX 11,617 3,044 26.2% Jacksonville, FL 3,327 861 25.9% Miami-Fort Lauderdale, FL 18,292 4,715 25.8% Los Angeles, CA 56,290 14,003 24.9% Houston, TX 24,601 6,105 24.8% Chicago, IL 42,348 10,092 23.8% Minneapolis-St. Paul, MN 9,297 2,177 23.4% Atlanta, GA 26,599 5,779 21.7% Las Vegas, NV 5,434 1,155 21.3% Seattle, WA 20,643 4,235 20.5% New York City, NY 98,653 20,166 20.4% Total 668,146 190,298 28.5% Source: Glassdoor Economic Research (Glassdoor.com/research) 10
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. What about cities with the fewest metro movers? The important factor to consider when choosing office loca- metro with the fewest share of applicants looking to tions, as it can dramatically impact their ability to attract move is America’s largest metro: New York City. With job candidates from outside their metro area. more than 20 million residents, just 20.4 percent of applications from New York City job seekers were to D. Where Applicants Want to Go jobs outside that metro. It’s followed by Seattle — a fast-growing tech hub that’s home to e-commerce Among the metros with a significant percentage of job giant Amazon, as well as Microsoft, T-Mobile and many seekers leaving – where do they want to go? In Table 3, others — where 20.5 percent of applications were to jobs we show the top ten metro destinations most appealing elsewhere. Other metros including Las Vegas, Atlanta to job applicants in each of the ten metros with the most and Minneapolis also saw the fewest metro movers. movers, revealing the cities that are competing for talent. What do these cities have in common? Most have a com- paratively low cost of living, abundant local job opportu- Overall, there are several interesting patterns. First, nities, and — perhaps most importantly — are located far each city appears to follow a phenomenon economists from the nearest metro area. Seattle, for example, lies call a “gravity model.” All else equal, job candidates apply more than three hours away from Portland, Oregon, a to jobs in nearby metros rather than those far away. For distance that’s enough to discourage many metro mov- example, among candidates looking to leave Providence, ers. Similarly, Las Vegas lies four hours away from either more than 30 percent apply to jobs in the nearby Boston Los Angeles or Phoenix, and Atlanta lies four hours away metro. More distant metros still attract a significant, from either Nashville or Charlotte. although much smaller, number of applications from Providence, including New York, San Francisco, Chicago For employers, this shows that geography — in addition and Salt Lake City. to cost of living, taxes, pay and company culture — is an Table 3. Top 10 Destinations for Job Applicants from Each Metro METRO OF JOB CANDIDATE: PROVIDENCE, RI Top 10 Job Destinations Percentage of Jobs Applied To Number of Jobs Applied To Boston, MA 30.1% 1,247 New York City, NY 4.6% 191 Worcester, MA 1.6% 67 San Francisco, CA 1.4% 58 Washington, DC 1.1% 44 Chicago, IL 0.9% 36 Salt Lake City, UT 0.8% 32 Los Angeles, CA 0.7% 28 Hartford, CT 0.7% 27 Dallas-Fort Worth, TX 0.6% 26 Source: Glassdoor Economic Research (Glassdoor.com/research) 11
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. METRO OF JOB CANDIDATE: SAN JOSE, CA Top 10 Job Destinations Percentage of Jobs Applied To Number of Jobs Applied To San Francisco, CA 28.9% 7,686 Los Angeles, CA 2.8% 751 New York City, NY 2.2% 598 Seattle, WA 1.5% 392 San Diego, CA 1.0% 272 Boston, MA 1.0% 270 Chicago, IL 0.7% 189 Washington, DC 0.6% 168 Austin, TX 0.5% 127 Sacramento, CA 0.5% 123 METRO OF JOB CANDIDATE: RIVERSIDE, CA Top 10 Job Destinations Percentage of Jobs Applied To Number of Jobs Applied To Los Angeles, CA 27.8% 2,439 San Diego, CA 4.4% 384 San Francisco, CA 3.3% 290 San Jose, CA 1.6% 142 Seattle, WA 1.1% 93 New York City, NY 0.8% 72 Las Vegas, NV 0.6% 54 Phoenix, AZ 0.6% 50 Dallas-Fort Worth, TX 0.5% 45 Portland, OR 0.4% 39 METRO OF JOB CANDIDATE: BALTIMORE, MD Top 10 Job Destinations Percentage of Jobs Applied To Number of Jobs Applied To Washington, DC 23.6% 2,216 New York City, NY 3.6% 341 Philadelphia, PA 1.5% 140 San Francisco, CA 1.2% 110 San Jose, CA 0.9% 84 Los Angeles, CA 0.9% 83 Boston, MA 0.8% 76 Chicago, IL 0.7% 63 Dallas-Fort Worth, TX 0.6% 58 Atlanta, GA 0.6% 54 Source: Glassdoor Economic Research (Glassdoor.com/research) 12
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. METRO OF JOB CANDIDATE: SACRAMENTO, CA Top 10 Job Destinations Percentage of Jobs Applied To Number of Jobs Applied To San Francisco, CA 16.8% 1,090 San Jose, CA 5.6% 362 Los Angeles, CA 4.1% 269 New York City, NY 1.3% 86 San Diego, CA 1.2% 80 Washington, DC 1.1% 71 Boston, MA 0.9% 60 Dallas-Fort Worth, TX 0.9% 59 Chicago, IL 0.7% 47 Portland, OR 0.7% 43 METRO OF JOB CANDIDATE: COLUMBUS, OH Top 10 Job Destinations Percentage of Jobs Applied To Number of Jobs Applied To New York City, NY 4.5% 249 San Francisco, CA 3.9% 212 Chicago, IL 2.6% 142 Cincinnati, OH 2.3% 127 Seattle, WA 2.1% 116 Cleveland, OH 1.9% 105 Los Angeles, CA 1.5% 83 Washington, DC 1.5% 82 San Jose, CA 1.4% 75 Boston, MA 1.1% 60 METRO OF JOB CANDIDATE: PITTSBURGH, PA Top 10 Job Destinations Percentage of Jobs Applied To Number of Jobs Applied To San Francisco, CA 5.1% 310 New York City, NY 4.5% 278 San Jose, CA 3.2% 197 Washington, DC 2.6% 162 Philadelphia, PA 1.8% 108 Los Angeles, CA 1.6% 96 Boston, MA 1.5% 92 Seattle, WA 1.4% 83 Chicago, IL 1.1% 68 Atlanta, GA 0.7% 45 Source: Glassdoor Economic Research (Glassdoor.com/research) 13
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. METRO OF JOB CANDIDATE: CHARLOTTE, NC Top 10 Job Destinations Percentage of Jobs Applied To Number of Jobs Applied To New York City, NY 3.5% 327 San Francisco, CA 2.5% 236 Raleigh-Durham, NC 2.3% 213 Washington, DC 2.1% 192 San Jose, CA 1.6% 151 Atlanta, GA 1.5% 144 Boston, MA 1.5% 144 Chicago, IL 1.5% 139 Seattle, WA 1.4% 135 Los Angeles, CA 1.3% 125 METRO OF JOB CANDIDATE: CINCINNATI, OH Top 10 Job Destinations Percentage of Jobs Applied To Number of Jobs Applied To New York City, NY 2.9% 151 Dayton, OH 2.7% 140 Columbus, OH 2.6% 135 San Francisco, CA 2.4% 123 Chicago, IL 1.7% 89 San Jose, CA 1.4% 73 Los Angeles, CA 1.3% 70 Boston, MA 1.3% 66 Washington, DC 1.2% 61 Atlanta, GA 1.1% 58 METRO OF JOB CANDIDATE: CLEVELAND, OH Top 10 Job Destinations Percentage of Jobs Applied To Number of Jobs Applied To Akron, OH 4.8% 224 Chicago, IL 3.0% 139 Columbus, OH 2.4% 114 New York City, NY 2.1% 100 Washington, DC 1.8% 84 Los Angeles, CA 1.7% 81 San Francisco, CA 1.3% 61 Seattle, WA 1.2% 58 Dallas-Fort Worth, TX 0.8% 39 Cincinnati, OH 0.8% 37 Source: Glassdoor Economic Research (Glassdoor.com/research) 14
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. E. Top Companies Applicants Consider Worth the Move When job seekers move to a new metro, they often do By contrast, the labor market in New York City is much so for a specific company. Rather than choosing a new more diversified. Top employers attracting outside talent city, applicants usually first choose a new employer or to New York City include a mix of more established job that offers a unique opportunity, great pay or pleas- institutions such as JP Morgan Chase, NBC Universal and ant company culture. Among the top metro destinations Goldman Sachs with tech employers like Spotify, Google attracting metro movers, which companies attract the and IBM. most applicants? The Washington D.C. metro differs sharply both from Table 4 shows a list of the top ten employers within the New York City and San Francisco with a more traditional cities attracting the most metro movers, as identified and establishment mix. Top employers in the D.C. area are above. What’s striking is the diversity of employers and health care companies like Vibrent Health, government industries attracting talent in each metro — a finding that contractors like CACI International, consulting firms like underscores the huge differences that persist among Booz Allen Hamilton and Deloitte, and educational insti- labor markets in America’s largest cities today. tutions like the University of Maryland. For example, in the fast-growing tech hub of San Francis- Taken together, these patterns in real-time job appli- co, nearly every top employer attracting metro movers cations on Glassdoor are simply a mirror that reflects is a high-profile tech giant: Facebook, Salesforces, Lyft, well-known cultural and economic differences among Uber, AirBnb and Yelp, among others. Only one non-tech U.S. cities, and the resulting patterns of jobs and pay that employer made San Francisco’s top 10 list: Walmart, we observe throughout the nation. It’s well known that which is expanding its e-commerce presence and hires the labor market in Washington D.C. differs substantially many tech roles such as software engineers, data from San Francisco in terms of employers hiring, jobs scientists and others. For employers in the San Francisco available and pay. The rich and diverse economic geogra- metro, this suggests they’re not only competing with the phy of the nation is clearly apparent in online job applica- tech sector to hire local talent, but also for candidates tions data from Glassdoor. outside the area aiming to relocate for tech jobs. 15
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. Table 4. Companies Attracting the Most Metro Movers in Top Cities DESTINATION METRO: SAN FRANCISCO, CA DESTINATION METRO: SAN JOSE, CA Top 10 Employers Number of Job Applications Top 10 Employers Number of Job Applications Attracting Talent from “Movers” Attracting Talent from “Movers” Facebook, Inc. 635 Google Inc. 519 Salesforce 291 Apple Inc. 358 Lyft 240 Adobe Systems Incorporated 315 Uber 240 NVIDIA Corporation 277 Shutterfly, Inc. 237 Amazon.com, Inc. 253 AirBnb, Inc. 228 Udacity 243 Yelp Inc. 223 Quora, Inc. 198 Fitbit Inc. 202 Yahoo! Inc. 195 Google Inc. 188 Cisco Systems, Inc. 169 International Business Wal-Mart.com USA, LLC 188 169 Machines Corporation DESTINATION METRO: NEW YORK CITY, NY DESTINATION METRO: LOS ANGELES, CA Top 10 Employers Number of Job Applications Top 10 Employers Number of Job Applications Attracting Talent from “Movers” Attracting Talent from “Movers” JPMorgan Chase & Co. 157 The Walt Disney Company 270 Spotify Limited 150 NASA’s Jet Propulsion Lab 165 The Goldman Sachs Group, 122 NBC Universal, Inc. 129 Inc. Justworks, INC. 117 Netflix, Inc. 128 Home Box Office, Inc. 110 Viacom Inc. 106 International Business Sony Computer 109 101 Machines Corporation Entertainment America NBC Universal, Inc. 107 CyberCoders, Inc. 96 International Business McKinsey & Company, Inc. 103 92 Machines Corporation Google Inc. 95 University of California 92 Oscar Insurance Corporation 94 Snap, Inc. 87 Source: Glassdoor Economic Research (Glassdoor.com/research) 16
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. DESTINATION METRO: WASHINGTON, D.C. DESTINATION METRO: CHICAGO, IL Top 10 Employers Number of Job Applications Top 10 Employers Number of Job Applications Attracting Talent from “Movers” Attracting Talent from “Movers” Booz Allen Hamilton Inc. 139 Motorola Solutions, Inc. 93 International Business 130 Citadel Securities LLC 66 Machines Corporation Latitude Inc. 72 TransUnion LLC 58 International Business Ecosystems 70 51 Machines Corporation Johns Hopkins University 67 AKUNA CAPITAL 47 Applied Physics Laboratory Vibrent Health 61 Discover Financial Services 45 Leidos Holdings, Inc. 58 Groupon, Inc. 44 CACI International Inc 54 McKinsey & Company, Inc. 44 Deloitte 54 Relativity 41 The University of Maryland 53 Shure Incorporated 41 DESTINATION METRO: BOSTON, MA DESTINATION METRO: SEATTLE, WA Top 10 Employers Number of Job Applications Top 10 Employers Number of Job Applications Attracting Talent from “Movers” Attracting Talent from “Movers” Bose Corporation 95 Amazon.com, Inc. 536 Massachusetts General 85 Microsoft Corporation 209 Hospital International Business 80 T-Mobile USA, Inc. 99 Machines Corporation Vertex Pharmaceuticals 76 Zillow, Inc. 97 Incorporated McKinsey & Company, Inc. 72 Google Inc. 95 Wayfair 70 Expedia, Inc. 75 Raybeam, Inc. 69 Facebook, Inc. 74 Raytheon Company 63 SAP Aktiengesellschaft 67 The Brigham and Women's 56 Starbucks Corporation 63 Hospital, Inc. The Boston Consulting 49 Vulcan Inc. 60 Group Inc. Source: Glassdoor Economic Research (Glassdoor.com/research) 17
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. DESTINATION METRO: DALLAS-FORT WORTH, TX DESTINATION METRO: AUSTIN, TX Top 10 Employers Number of Job Applications Top 10 Employers Number of Job Applications Attracting Talent from “Movers” Attracting Talent from “Movers” International Business AMR Corporation 115 103 Machines Corporation Lockheed Martin 99 Dell Inc. 93 Corporation The University of Texas The Allstate Corporation 92 84 at Austin International Business 80 PayPal, Inc. 72 Machines Corporation Texas Instruments 64 Silicon Laboratories Inc. 60 Incorporated Baylor Scott & White Health 48 Facebook, Inc. 45 University of Texas South- 42 Amazon.com, Inc. 44 western Medical Center Bank of America 39 Cirrus Logic, Inc. 44 Corporation Texas Health Resources Inc. 38 Electronic Arts Inc. 44 Amazon.com, Inc. 33 NXP Semiconductors N.V. 40 Source: Glassdoor Economic Research (Glassdoor.com/research) F. Jobs That Move Better Than Others Not all jobs offer the same geographic mobility to workers. administrator (69 percent are metro movers), ATG devel- Some jobs attract qualified applicants from all over the U.S., oper (67.5 percent are metro movers), industrial engineer while others draw mostly local talent from the nearby labor (61.9 percent are metro movers) and Salesforce developer market. Which jobs today are most likely to attract talent (59.7 percent are metro movers). from distant metros? Why are tech and engineering jobs so geographically Table 5 shows the top 25 job titles on Glassdoor with the mobile? Partly, it’s due to labor demand: employers for largest percentage of metro movers in 2018. The most these roles are often concentrated in a few big metros and geographically mobile jobs are generally engineering and actively hire talent from across the U.S. It’s also due to labor tech roles. The most mobile job in our sample was chemical supply: many candidates for tech and engineering roles are engineer, with 73.1 percent of applications to jobs outside relatively young, highly educated and more willing to pick the person’s current metro — 2.5 times the overall average up and move cross country for their career. in our sample. They’re followed by Oracle database 18
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. Table 5. Job Titles with the Highest Share of Metro Movers Job Title Applied To Number of Job Applications Metro Movers Percentage Metro Movers Chemical Engineer 535 391 73.1% Oracle Database Administrator 532 367 69.0% ATG Developer 530 358 67.5% Industrial Engineer 607 376 61.9% Salesforce Developer 760 454 59.7% Flight Attendant 750 447 59.6% Data Engineer 2,604 1,543 59.3% Structural Engineer 500 296 59.2% Mobile Developer 797 469 58.8% Process Engineer 1,214 702 57.8% Data Scientist 7,808 4,469 57.2% Database Administrator 960 549 57.2% Software Engineer 28,934 16,495 57.0% Devops Engineer 1,295 727 56.1% ASIC Physical Design Engineer 574 313 54.5% Design Engineer 713 385 54.0% Software Development Engineer 1,679 900 53.6% Actuarial Analyst 530 276 52.1% UX Researcher 687 351 51.1% Network Engineer 2,149 1,092 50.8% Mechanical Engineer 3,905 1,965 50.3% Research Scientist 1,099 546 49.7% Manufacturing Engineer 1,104 546 49.5% Software Developer 5,134 2,519 49.1% SQL Developer 519 255 49.1% Source: Glassdoor Economic Research (Glassdoor.com/research) Which jobs have the lowest share of metro movers? Bartender was the least geographically mobile role with Table 6 shows the job titles of job seekers least likely to just 8.7 percent of applicants coming from an outside move. Americans in these roles mostly stay close to home metro. They’re followed by retail representative and rarely apply to jobs outside their current metro area. (10 percent metro movers), delivery driver (10 percent metro movers), receptionist (10.1 percent metro movers) and retail team member (10.3 percent metro movers). 19
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. Overall, these roles are lower-skilled positions that are The irony of these “metro stayer” positions is that be- typically filled from within the local labor market. Salaries cause they’re widely available, you might expect outward for many of these jobs are below the median U.S. pay of migration from expensive cities toward more affordable roughly $51,975 per year for full-time workers, making it 7 areas for these roles. For example, candidates for retail hard to justify a cross-country move for most applicants. representative jobs have their choice of open jobs in In addition, employers for these roles are widely dis- essentially every U.S. city, unlike a more specialized role persed throughout the U.S. and are not clustered in just like database engineer that may require living in a high a few metros like many specialized tech and engineering cost of living metro. So do retail representatives flee to jobs. Applicants looking for bartender roles, for example, lower cost of living areas? Our data shows lower-skilled need not move to find an open position — many are avail- candidates are just as likely to stay close to home, able close to home. regardless of a city’s affordability. Table 6. Job Titles with the Lowest Share of Metro Movers Job Title Applied To Job Applications Metro Movers Percentage Metro Movers Bartender 967 84 8.7% Retail Representative 988 99 10.0% Delivery Driver 927 93 10.0% Receptionist 4,707 477 10.1% Retail Team Member 3,218 332 10.3% Front Desk Agent 721 74 10.3% Barista 1,263 132 10.5% Bank Teller 1,191 125 10.5% Forklift Operator 571 60 10.5% Order Selector 990 106 10.7% Server 1,468 158 10.8% Host 795 86 10.8% Clerk 650 70 10.8% Customer Service Representative 4,368 486 11.1% Cashier 3,480 388 11.1% File Clerk 713 80 11.2% Housekeeper 847 96 11.3% Accounts Receivable 799 92 11.5% Accounting Clerk 737 85 11.5% Cook 553 64 11.6% Accounts Payable 839 100 11.9% Material Handler 787 94 11.9% Store Manager 2,576 308 12.0% Accounts Payable Specialist 674 81 12.0% Office Assistant 1,176 142 12.1% Source: Glassdoor Economic Research (Glassdoor.com/research) 7. Glassdoor “Local Pay Reports,” February 2018 (accessed March 23, 2018). Available online at www.glassdoor.com/research/local-pay-reports/. 20
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. G. Do Metro Movers Earn More? Many of the most geographically mobile jobs are Figure 4 shows a scatterplot of the relationship between high-paying roles in tech and engineering. By contrast, pay and geographic mobility among job applicants on many of the least mobile jobs are lower-skilled jobs in Glassdoor. Each dot is one job title we examined. On the retail, food services and other blue-collar roles. Do more horizontal axis is the percent of applicants who were geographically mobile job candidates earn higher pay willing to move for each job. On the vertical axis is the on average? The short answer: yes, especially if it’s for average estimated base salary for each job applied to for a tech job. these roles. The blue line shows the best fitting linear model for the data — a clear positive link between higher pay and more mobile job applicants. Figure 4: Geographically Mobile Jobs Generally Earn Higher Pay Metro Movers Earn Higher Pay Median Base Pay (each point represents one job title) Percentage of Applications Moving to New Metro Why is there a link between higher pay and a willingness seekers who are willing to move also enjoy more to move for jobs? It reflects a mixture of both cause and bargaining power. Those who are most geographically effect: The higher the pay, the more likely the job is to mobile can attract offers from the entire U.S. labor attract candidates from distant metros, since higher market, rather than just a narrow set of employers in paying roles justify cross-metro moves. However, job their home area, which often translates into higher pay. 21
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. III. Which Job Factors Most Attract Metro Movers? In the previous section, we revealed several stylized likelihood that a job seeker will look beyond their home facts about Americans searching for jobs beyond their metro for a job. metro on Glassdoor. In this section, we take a closer look at the data and estimate which job or applicant factors Table 7 shows the summary statistics we used for our statistically predict whether a job seeker will be willing regression model. This is a smaller subset of the overall to move metros for a job — whether it’s for better pay, sample because only whole records, with data on each a higher -rated company on Glassdoor, or other factors factor, were used. In total, we used 35,999 online job like education, age and gender of candidates. applications started on Glassdoor during the week of January 8, 2018. Metro movers made up 36 percent of Below we estimate a “linear probability model” to applicants, applying to jobs with a mean base salary of identify which factors best predict whether candidates $87,907 per year. The average company rating was 3.7 will apply to jobs outside their metro, all else equal. out of 5 stars. Men were 59 percent of applicants, while This shows how higher pay, better company culture and 41 percent were women. The average age was 33 years. job candidate characteristics separately influence the Table 7. Summary Statistics for the Data (Regression Model) Statistic Observations Mean St. Dev. Min Max Metro Mover (Mover = 1) 35,999 0.36 0.48 0 1 Job Salary 35,999 $87,907 $38,234 $14,528 $295,757 Glassdoor Rating 35,999 3.7 0.6 1 5 Gender (Male = 1) 35,999 0.59 0.49 0 1 Age 35,999 33.0 9.7 19 65 High School 35,999 0.06 0.24 0 1 Associate's Degree 35,999 0.01 0.12 0 1 Bachelor's Degree 35,999 0.6 0.49 0 1 Master's Degree 35,999 0.25 0.43 0 1 Ph.D. 35,999 0.00 0.06 0 1 Professional Degree 35,999 0.02 0.12 0 1 (JD, MD, MBA) Source: Glassdoor Economic Research (Glassdoor.com/research) 22
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. Using the data in Table 7, we estimated the following linear probability model via ordinary least squares (OLS), Prob(Moverij = 1) =ß0+ ß1Salaryij+ß2Cultureij+ß3Controlsij+αi+γj+εij where P(Mover) is a binary indicator equal to 1 for metro movers applying to job title i from metro j, and 0 otherwise; Salary is the estimated base pay for the job opening; Culture is the employer’s overall Glassdoor 1-5 star rating; Controls include age, education and gender of the job applicant; and α and γ are job title and metro fixed effects, respectively. ε is the usual mean-zero error term for all other unobserved factors. Our regression results are shown in Table 8. It shows the predicted impact each factor has on the probability that a job seeker is a metro mover, with the corresponding standard errors in parentheses. In Column 1, we show estimates that don’t control for any differences among job titles or metros. In Column 2, we control for differences in job titles. Column 3 controls for both metro location and applicants’ job titles. Here’s a summary of our key findings: • Salary drives candidates to move. But the effect • Younger workers are more likely to be metro movers. of higher pay is small. Our estimates show an extra On average, the older a worker, the less likely they’re $10,000 higher base salary predicts applicants are willing to move for a job. In fact, each one higher about a half percentage point (0.41 percentage point) age group (which corresponds to roughly ten years) more likely to be a metro mover for a job. That’s predicts candidates will be 7 percentage points less statistically significant, but a small effect overall. likely to be a metro mover. For employers who need to hire experienced candidates from other areas, • But better company culture is more attractive to recruiters should plan to actively recruit these movers. Applicants are 2.5 percentage points more candidates — and be prepared to compensate more likely to move for a job at a company that has a 1-star senior movers with either premium offers or have higher overall Glassdoor rating. That’s a statistically excellent workplace culture. significant impact and is roughly six times larger than the impact of offering a $10,000 higher salary. • Men are more likely to move metros, even after controlling for job titles, education and age. All else • The more educated, the more likely to move. equal, we found men in our sample were 3.3 percent- Workers with a master’s degree are about 4.9 age points more likely to apply to jobs in another percentage points more likely they’ll be willing to metro than women. That suggests employers look- move for a job. Those with a 2-year associate’s ing to attract metro movers should plan to make degree are least likely to move metros for a job and conscious outreach efforts to women — particularly are 7.4 percentage points less likely to move metros. in tech and engineering roles that attract the most metro movers — as women are statistically less likely to appear in employer applicant pools otherwise. 23
METRO MOVERS: WHERE ARE AMERICANS MOVING FOR JOBS, AND IS IT WORTH IT? Andrew Chamberlain, Ph.D. Table 8: Regression of Metro Movers on Salary, Company Culture and Controls Model (1) Model (2) Model (3) Job Title and Variable (Impact on Probability of Being a Metro Mover) No Controls Job Title Controls Metro Controls Median Salary of Job (x $10,000) 0.011*** -0.002 0.004*** (0.00) (0.00) (0.00) Glassdoor Company Rating 0.027*** 0.016*** 0.025*** (0.01) (0.01) (0.01) Gender (Male = 1) 0.076*** 0.030*** 0.033*** (0.01) (0.01) (0.01) Age Group -0.106*** -0.066*** -0.070*** (0.00) (0.00) (0.00) Associate’s Degree -0.025 -0.044** -0.074*** (0.02) (0.02) (0.02) Bachelor’s Degree 0.018* -0.005 -0.013 (0.01) (0.01) (0.01) Master's Degree 0.126*** 0.067*** 0.049*** (0.01) (0.01) (0.01) Ph.D. 0.071* -0.02 -0.026 (0.04) (0.05) (0.05) Professional Degree (JD, MD, MBA) -0.03 -0.01 -0.02 (0.02) (0.02) (0.02) Constant 0.330*** 0.681*** 0.644*** (0.02) (0.1) (0.1) Controls: Job Title Controls X X Metro Location Controls X Observations 35,999 35,999 35,999 Adjusted R2 0.08 0.15 0.19 Note: Regression of a 0/1 dummy indicator for the presence of being a metro mover on various characteristics of jobs, candidates and employers. Heteroskedasticity robust standard errors are shown in parentheses. Source: Glassdoor Economic Research (glassdoor.com/research/) 24
IV. Conclusion In this study, we examined a large sample of online job culture matter. However, good company culture matters applications from Glassdoor to help better understand much more to applicants than pay — an employer having the types of candidates who are most willing to relocate a 1-star higher overall rating on Glassdoor can expect for jobs and why. What can employers trying to attract to attract a metro mover at about six times the rate of talent from across the U.S. learn from our findings? employers paying a $10,000 higher salary, based on our estimates. As we’ve shown in past research, pay matters First, most job candidates prefer to stay close to home. for talent attraction, but it’s statistically often a less So candidate pools for most jobs will typically be important factor than having a strong employer brand.8 comprised of local applicants. For employers choosing locations for new offices and facilities, it’s important to Fourth, women and more experienced workers are less look beyond monetary factors like taxes and real estate likely to apply to jobs outside their home metro, even costs. Employers should consider the local labor market after controlling for factors like education, pay and job and whether it contains the skills and education they’ll titles. For employers looking to hire specialized tech and need to hire, because most job applications will be engineering jobs that attract the most metro movers, this coming from the nearby labor force. suggests employers will face less diverse applicant pools on average unless they specifically recruit women and Second, some jobs are better able to attract talent from more experienced candidates. This is an often overlooked outside metros than others. Applicants for tech and cause of applicant pools that lack diversity — something engineering roles on Glassdoor are most willing to employers can overcome by targeting outreach efforts at relocate for jobs. However, applicants for many low- these under-represented groups when hiring nationally er-skilled roles in retail, food services and some blue- for specialized roles. collar jobs are unlikely to apply to jobs outside their home metro — these are jobs employers will have to America’s labor market is more dynamic than ever, with make a special effort for if they wish to recruit talent applicants increasingly researching and comparing jobs from more distant metro areas. online during their search process. This study illustrates which candidates are most likely to move for jobs in Third, when it comes to enticing applicants to relocate, America today — and what employers can do to attract we find strong evidence that both pay and company these mobile applicants in 2018. 100 Shoreline Hwy, Mill Valley, CA 94941 glassdoor.com/research | Email: economics@glassdoor.com 8. See for example, “What Matters More to Your Workforce than Money,” (January 2017) by Andrew Chamberlain. Harvard Business Review. Available at https://hbr.org/2017/01/what-matters-more-to-your-workforce-than-money. Copyright © 2008–2018, Glassdoor, Inc. “Glassdoor” and logo are proprietary trademarks of Glassdoor, Inc.
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