Heavily unionized states in the north are primarily the reason why labor costs are higher. The cost of living is also highest because of taxation burdens. In the South, the wages aren’t as high, but the cost of living is also much lower and companies are more competitive in the marketplace. Many foreign car plants are in the right to work states and do quite well without fighting the unions on lucrative benefit packages.
Do I detect a touch of sarcasm Youngin? I have lived in the sun belt long enough to know that the quality of living overall is much better than the northern blue states and also know there are a lot of people that moved south to find work and opportunity. If a person has lived in Chicago or Detroit, can you blame them for moving out? By the way, Boeing won their fight with the NLRB to locate their plant in South Carolina and now they are producing planes with non union employees who make excellent wages and benefits.
I was just marveling at your ability to take a complex statistic such as average employee cost, which depends on numerous factors which vary by geography such as healthcare costs, housing costs, taxes, and mix of industries . . . and boil it down to a single explanatory variable: unions!
I can only imagine the explanations you give your clients when their rates go up.
Youngin, It doesn’t take much more than Common Sense to figure out why employee costs are higher in the North than in the South. Living costs are much higher in the North than the south with the heavy tax burden on employers, healthcare costs including health premiums, no Tort Reform. There is no mystery here on why the Blue States have lost industry throughout the rust belt with heavy unionization. I wonder how Detroit has managed to lose half their population in the past 10 years. I assure you that it is not because they have a business friendly environment.
Ever see how slow they move in the south!
I have noticed that people that move to the south don’t tend to move back north. I wonder why that is.
Heavily unionized states in the north are primarily the reason why labor costs are higher. The cost of living is also highest because of taxation burdens. In the South, the wages aren’t as high, but the cost of living is also much lower and companies are more competitive in the marketplace. Many foreign car plants are in the right to work states and do quite well without fighting the unions on lucrative benefit packages.
Agent, your grasp of statistics is truly mind-boggling.
Do I detect a touch of sarcasm Youngin? I have lived in the sun belt long enough to know that the quality of living overall is much better than the northern blue states and also know there are a lot of people that moved south to find work and opportunity. If a person has lived in Chicago or Detroit, can you blame them for moving out? By the way, Boeing won their fight with the NLRB to locate their plant in South Carolina and now they are producing planes with non union employees who make excellent wages and benefits.
I was just marveling at your ability to take a complex statistic such as average employee cost, which depends on numerous factors which vary by geography such as healthcare costs, housing costs, taxes, and mix of industries . . . and boil it down to a single explanatory variable: unions!
I can only imagine the explanations you give your clients when their rates go up.
Youngin, It doesn’t take much more than Common Sense to figure out why employee costs are higher in the North than in the South. Living costs are much higher in the North than the south with the heavy tax burden on employers, healthcare costs including health premiums, no Tort Reform. There is no mystery here on why the Blue States have lost industry throughout the rust belt with heavy unionization. I wonder how Detroit has managed to lose half their population in the past 10 years. I assure you that it is not because they have a business friendly environment.