Sign up for our daily briefing

Make your busy days simpler with the Axios AM and PM newsletters. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to the Axios Closer newsletter for insights into the day’s business news and trends and why they matter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios Pro Rata

Dive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with the Axios Sports newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with the Axios Des Moines newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with the Axios Tampa Bay newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Austin news?

Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Atlanta news?

Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Philadelphia news?

Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Chicago news?

Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top DC news?

Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Sarah Grillo/Axios

Millions of Americans have been jobless for a year or more: the hard-core unemployed. Among the causes for their stubborn unemployment is a lack of skills, a drug habit, or a felony record.

Between the lines: But there is another, largely overlooked reason. Many of these unemployed people simply can't — or won't — go where the jobs are.

The big picture: Increasing numbers of experts say the concentration of wealth in big cities, along with the rise of automation, is putting low-wage jobs out of the physical reach of workers.

  • Often they live on the periphery of cities, without easy access to public transportation.
  • And for the first time in the nation's history, big numbers of Americans have stopped moving for work. Even when there are jobs in another city or state, they have been unwilling, for reasons no one has been able to decisively explain, to pick up and start a new life.

Both workers and employers are getting hit.

As we've reported, about 13 million working-age people in the U.S. are unemployed, involuntarily working part-time or have wholly given up on the job hunt. The problem, though, isn't a lack of jobs — employers complain that they can't fill open positions — but a slew of barriers.

A new report from the Urban Institute analyzed 2017 application data across several types of low-wage, hourly jobs in 16 major U.S. cities, looking at the mismatch between openings and job seekers by zip code.

  • In 41% of Boston-area zip codes, there were far more openings than job-seekers who lived a reasonable distance away. In other words, most possible applicants lived too far from the workplace — there either was no efficient public transportation to the job, or it cost too much to get there.
  • In New York, 32% of zip codes had this problem. In San Francisco, 29%.
  • The trend stretched to middle-sized cities, too: 24% of Denver-area zip codes had this mismatch. In Columbus, 37%.
"These are people who are looking to enter the job market, and if they can't find it feasible from a transportation or cost or distance perspective, that's saying that there are significant barriers in place."
— Joseph Kane, Brookings Institution

The backdrop: Half a century ago, there was a hollowing out of big cities. As high-earning workers moved to suburbs, low-income residents were left behind.

  • Today, as cities have had a resurgence, there are tons of jobs in downtowns, but gentrification and a surge in housing costs are once again keeping low-income workers away from jobs, says Yingling Fan, a professor at the University of Minnesota.

What's happening: Poorer city residents live in the "last-subway-stop" parts of cities, a couple of hours, or further, from work — and they can't afford to move.

  • Often, the long commute is not worth the trouble. "You could take a couple buses to that restaurant job if there’s a career ladder there or if the wages and benefits are worth it," says Christina Stacy, lead author of the Urban Institute report. But that's rarely the case.

Another bucket of low-wage jobs, those in factories or warehouses, have the opposite problem. Companies like Amazon are building their warehouses far away from city centers, close to airports and highways and away from major public transit lines. They can be difficult to access without a car, says Brookings' Kane.

  • In Minneapolis, Amazon and General Mills have started offering shuttles to ferry workers from the city to the warehouses, reports the Star Tribune.

The solution is two-fold, Stacy tells Axios: Cities need to revisit train and bus lines and build affordable housing closer to downtown. "Until we figure out how to make every job a high-quality job, connecting people to a job is crucial."

Go deeper

It's official: Stock market having worst start to year ever

Data: FactSet; Chart: Axios Visuals

It's been a decidedly ugly start to the year for the stock market, with particular pain in the tech trade.

State of play: As of the end of trading Tuesday — the 16th session of the year — 2022 is now, officially, the worst-ever start in the history of the S&P 500, according to data from Ned Davis Research, a stock market research shop.

Surprising pandemic side effect: Soaring trade deficits

Source: Census Bureau and Bureau of Economic Analysis; Chart: Axios Visuals

Inflation and jobs may get all the economic headlines, but meanwhile a big shift is taking place in the underpinnings of the world economy: The U.S. trade deficit is soaring.

What's happening: Americans' spending on imported physical goods has gone through the roof, while exports are growing slowly, making the U.S. the world's consumer of last resort.

Mike Allen, author of AM
3 hours ago - Politics & Policy

Third Way: "Big Lie" could become "Big Coup"

Graphic: Third Way

Third Way, the center-left think tank, is urging fellow Democrats to respond to the Capitol riot with "the size, scope, and seriousness of a presidential campaign," co-founder Matt Bennett tells me.

Driving the news: "For the first time in U.S. history, a party must mount two parallel presidential campaigns: one to win the election, and the other to prevent its theft," Bennett said, calling this "a Paul Revere moment."

You’ve caught up. Now what?

Sign up for Mike Allen’s daily Axios AM and PM newsletters to get smarter, faster on the news that matters.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!