Very interesting article from New Geography and Sacramento comes in at 41st in the large cities category.
From the earliest days of the Republic, banking and finance has largely been the purview of what one historian calls the “Yankee Empire.” Based largely in New York and Boston, later on financial centers grew along the main route of Yankee migration to Chicago and San Francisco.
Yet, if you look at where financial jobs are now headed, perhaps it’s time, as the Dallas Morning News cheekily suggested recently, to substitute Y’all Street for Wall Street. Finance, increasingly conducted electronically, is no longer tethered to its traditional centers. Large global financial companies like UBS, Deutsche Bank , Morgan Stanley and Goldman Sachs are all committed to relocating operations to less expensive locations.
In the U.S., this has benefited the South the most. This year’s list of the metro areas that are increasing employment in financial services at the fastest rate is led by first-place Nashville-Davidson-Murfreesboro-Franklin, Tenn., No. 2 Dallas-Plano-Irving, Texas, No. 4 Austin-Round Rock, Texas, and No. 5 Charlotte-Concord-Gastonia N.C.-S.C.
Financial service employment is important, particularly since the recovery from the 2008 financial meltdown. The industry is second in the U.S. only to the professional and business services sector in terms of the number of people it employs in high-paying jobs (average salary: $62,860), and its recent growth has been spread across the country. Of the 70 large metro areas we studied, only three have lost financial jobs since 2010.
To generate our ranking, we looked at employment growth in the 366 metropolitan statistical areas for which BLS has complete data going back to 2005, weighting growth over the short-, medium- and long-term in that span, and factoring in momentum — whether growth is slowing or accelerating. (For a detailed description of our methodology, click here.)
The South Rises Again
The shift to the South seems to be based on several factors: lower costs (including for housing), less regulation and expanding markets, driven by rapid population growth. As population has shifted to the South, most notably low-tax states like Tennessee and Texas, it has clearly increased local demand for financial services. But there’s also another factor: the migration of financial jobs from traditional centers such as New York, Chicago and Los Angeles.
Our top emerging financial superstar, Nashville, has all these characteristics.
Since 2010, the area’s financial workforce has expanded 24.5 percent to 60,900. Population growth and in-migration rates have been spectacular.