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The future of the US economy is in the South
  + stars: | 2024-02-28 | by ( Jacob Zinkula | ) www.businessinsider.com   time to read: +4 min
If you're searching for the future of the American economy , look South. Population growth is among the key drivers of economic growth , and Americans are clustering in the South. The South had the highest job openings rate and the lowest unemployment rate of any region, per BofA. Houston's energy economy , Miami's proximity to Latin America and growing financial industry , Dallas's blossoming environment of diversified business behemoths, and Nashville's status as a healthcare and tech hub could position each of these Southern cities to thrive in the future. To varying degrees, some Southern cities are already seeing how high housing costs can plague an area with surging demand .
Persons: weren't, who've, Niall Ferguson, Barron's, Houston — Organizations: Service, Bank of America, Business, Texans, Dallas Fed, Houston Locations: Northeast, Midwest, West, Southern, United States, Carolina, Georgia, Florida, South Carolina, Texas, New York, San Francisco, Houston, Dallas, Nashville, Miami, Stanford, America, San Francisco , New York, Los Angeles
Gen Zers are less likely to take certain risks, which could be one reason they want more of a social safety net. If you ask many Gen Zers that question, they'll say the current social safety net is insufficient. AdvertisementSixty-five percent of Gen Zers think the government should provide a job to anyone who wants one, according to a Wake Forest survey of 2,000 Gen Zers and millennials conducted with YouGov in 2022. Exactly what, if any, changes the US should make to its social safety net is up for debate. Some young people may look to Europe, where countries generally have a larger social safety net than the US.
Persons: , Zers, Christina Elson, Elson, millennials, Gen Zers, Gen, Z, it's, Charlie Munger, Munger Organizations: Service, Center, Wake Forest University, Wake, YouGov, Social Security Locations: American, Europe, Germany
The United States has one of the most expensive childcare systems in the world. The average childcare cost among all 30 countries was less than 15% of a couple's wages. The US spends roughly 0.4% of its GDP on early education and childcare, compared to 0.8% for the average OECD country. In addition to boosting the number of working women, reducing childcare costs could motivate some US couples to have children. A recent study from the Beijing-based Yuwa Population Research found that high childcare costs were among the main reasons for China's low birth rate.
Persons: , Cindy Lehnhoff Organizations: Service, United, Bank of America, OECD, Business, of America, York Times, National Child Care Association, Research Locations: United States, New Zealand, Germany, Austria, Iceland, Beijing
Read previewMany professional athletes get paid a lot of money to play their sports, but for some, their endorsement deals are more lucrative than their salaries. Los Angeles Lakers' LeBron James is the professional athlete who earned the most from endorsements and sponsorship deals last year, per Sportico. Athletes tend to retire younger than the average worker, so endorsement deals help them maximize their earnings while they're still in the spotlight. But without these restrictions, star athletes like James would likely earn much more over the course of their careers. AdvertisementThe athletes with the lowest endorsement earnings are listed first.
Persons: , LeBron James, Dre, Cristiano Ronaldo, they're, Travis Kelce, James Organizations: Service, Los Angeles Lakers, LeBron, Nike, PepsiCo, Lakers, Business, Al, Kansas City Chiefs, NBA, NFL, NHL Locations: Saudi
Who are these overemployed workers? AdvertisementOveremployed workers tend to be male millennials in tech or IT jobsNearly all of the overemployed workers Business Insider has spoken with have been men. "In the IT world, we never really work a full 40 hours a week," a former overemployed worker previously told BI. The typical overemployed worker is making between $100,000 and $500,000 across up to four jobsFor most overemployed workers, job juggling isn't worth the stress unless they're very well compensated. One millennial earned over $500,000 across four non-simultaneous jobs, while another worker earned over $820,000 across three roles.
Persons: , Louis Fed, Zers, Xers, Zer, Xer, overemployment Organizations: Service, Business, of Labor Statistics, WomenTech Network Locations: St
A Wisconsin Uber driver said working inconvenient hours gives him the best chance to make money. AdvertisementFor Ken Morris, an Uber driver based in Green Bay, Wisconsin, embracing unideal working hours is the best way to make money as a ride-hailing driver . “If you don’t want to drive, that’s probably when you should be driving,” Morris, 49, told Business Insider via email. In 2022, he took home roughly $14,000 as an Uber ride-hailing driver — about $1.1 per online mile driven — according to a document viewed by BI. These income figures include tips and bonuses and don’t account for driving expenses like gas, maintenance, and depreciation.
Persons: Uber, , Ken Morris, ” Morris, Morris, he’s, it’s, I’ve, haven’t, Lyft, Tipping, , Morris wasn't, he’d, Gridwise, it's Organizations: Service, Uber, BI, Locations: Wisconsin, Green Bay , Wisconsin
Double majors are less likely to experience "earnings shocks" like job losses, per a new paper. While it’s unclear why graduates with double majors offered workers this protection, the researchers speculated that it had something to do with their diversified skillsets. A University of Pennsylvania research paper from 2021 found that double majors tended to earn more money over the course of their careers — STEM and business double majors saw the biggest income boost. As of 2015, about 13% of Americans between ages 20 and 29 were double majors, per American Community Survey data. Roughly 10% of the individuals analyzed in the working paper were double majors.
Persons: , Andrew Hanks, , ” Bruce Weinberg Organizations: Service, National Bureau of Economic Research, Stanford, Ohio State University, American, Survey, Ohio State, University of Pennsylvania, US Department of Education Locations: Ohio State
AdvertisementThat means the strong job numbers of recent months have largely been due to immigrants , specifically foreign-born workers, entering the workforce in large numbers. “Foreign-born labor force participants have accounted for all of the job growth over the last year,” Bill Adams, an economist at Comerica Bank, told The New York Times. AdvertisementAdditionally, he said these job gains haven’t come at the expense of US-born workers either. As of 2022, foreign-born workers were more likely than US-born workers to be in service, natural resources, construction, and maintenance jobs, according to the Bureau of Labor Statistics. As of January, 65.7% of foreign-born workers were working or looking for work, compared to 61.4% of US-born workers.
Persons: , ” Bill Adams, Paul Krugman, “ They're, , Louis, Miguel Faria, Castro, Donald Trump Organizations: Service, Business, Comerica Bank, New York Times, Bureau of Labor Statistics, Immigrants, Congressional, Office, St, Louis Fed
Over the past year, Uber drivers have told Business Insider that it’s gotten harder to make money . Gridwise told BI these earnings reflected the amount drivers took home after Uber took its cut of drivers' gross earnings. The average Uber driver’s earnings before expenses declined from $29 an hour in 2022 to $25 in 2023. Meanwhile, the average Uber Eats driver’s earnings fell from roughly $20 to $18 an hour before expenses — the average driver worked 27 hours a month. While Uber drivers saw the largest year-over-year decline in monthly pay, the average driver’s $25 an-hour earnings before expenses were still higher than any other gig.
Persons: Gridwise, Uber, it’s, haven’t, Lyft Organizations: Business, Bureau of Labor Statistics
Last October, 21% of the roughly 1,000 Americans surveyed by Gallup said the economy was “getting better,” according to survey data provided to BI. Forty-two percent of respondents said they trusted Donald Trump more than Biden to handle the economy — 31% trusted Biden over Trump. It could mainly be Democrats who are feeling better about the economyThere could be several reasons Americans’ growing optimism about the economy improving hasn’t translated into better polling for Biden. Republicans also seemed more optimistic, with their sentiment growing by nearly 10 points from January to February. The last time Democrats’ sentiment was about as low as Republicans’ February level was in the late summer of 2020.
Persons: , Joe Biden, Joe Biden’s, Donald Trump, Biden, he’s, Paul Krugman, hasn’t Organizations: Service, Business, University of, Gallup, BI, Financial Times, University of Michigan, Biden, Trump, ABC, Republicans Locations: Michigan
While nearly 90% of food delivery trips get tips, less than a third of Uber and Lyft trips get tips. That’s according to a new study of over 500,000 US gig drivers from Gridwise , a data analytics company and app that helps drivers track their earnings. The study found that nearly 90% of food delivery trips get a customer tip, compared to 75% of grocery delivery trips and 28% of Uber and Lyft ride-hailing trips. AdvertisementOne explanation for why Americans are more likely to tip food delivery drivers over ride-hailing drivers is that many tip them when their order is placed. In comparison, customers generally tip their Uber and Lyft drivers during or after a ride is completed.
Persons: , Gridwise, Uber, Lyft Organizations: Uber, Service, Business, Gridwise, Stanford, University of Chicago, Pew Research
Some Uber and Lyft drivers say it's become harder to make money over the past year. AdvertisementMany Uber and Lyft drivers say ride-hailing has become less profitable than it used to be, and some are blaming that on the gig's popularity. Fred is one of several drivers who told Business Insider that an increase in drivers has contributed to fewer available — and lower-paying — trips. This came after the number of global Uber drivers increased 31% in 2022 to a record five million. One San Francisco-based Lyft driver told BI that Waymo's self-driving taxis in the city have added another layer of competition.
Persons: , Fred, Uber, Lyft, it's, Rich, I'd Organizations: Service, Business, Arizona Uber Locations: Virginia, San Francisco, Arizona
A San Francisco-based Lyft driver said Waymo's self-driving taxis have made the job more competitive. And it is getting harder every day.”AdvertisementMore drivers, ride challenges, and self-driving taxis make ride-hailing competitiveA self-driving Waymo car in San Francisco. Lyft has a self-driving partnership with the riderless technology company Motional in Las Vegas, which has led to the completion of over 100,000 self-driving Lyft trips. In October, San Francisco banned Cruise from operating in San Francisco after it failed to disclose video footage of a woman being pinned under one of its vehicles. The company told BI it has a couple hundred self-driving taxis in its San Francisco fleet.
Persons: , Nick Boenzi, San Francisco — Boenzi, Boenzi, He’d, , Lyft, Uber, Lyft’s, Cruise, Waymo, he’s, he’ll Organizations: Service, San Francisco International Airport, Getty, BI, who’ve, General Motors, California Public Utilities Commission, San, Lyft Locations: Francisco, San Francisco, Las Vegas, Phoenix, Cruise
To this day, Tomas is secretly working two full-time remote jobs that pay over $250,000 a year in combined salaries, according to documents viewed by BI. Tomas is among a small group of US workers — many in the tech and IT industries — secretly holding multiple remote jobs. He’s even encouraged some colleagues to look for second jobs and provided advice on pulling it off. He said one of his jobs became much more demanding and that he wanted to adjust to the workload before he took on a second job again. All but one of his jobs were remote — he said flexible working hours enabled him to juggle a hybrid and remote role for a while.
Persons: , Tomas, , overemployment, , he’s, it’s, didn’t Organizations: Service, Business, BI Locations: Georgia
This accounts for tips, bonuses, and expenses — and defines an engaged hour as time spent on rides. AdvertisementHow Lyft calculates earnings and expensesUsing car ownership data from AAA, Lyft estimated that the typical driver has $7.02 per engaged hour in marginal driving expenses, bringing the typical driver's net earnings per engaged hour, after expenses, to $23.46, per Lyft's calculations. Lyft said a large majority of its drivers don't solely rely on Lyft driving for their total income. 94% of Lyft drivers drive less than 20 hours a week, while two-thirds drive for other apps. Nationwide, the 20th percentile for Lyft driver earnings averaged $17.46 per hour after expenses, while the 80th percentile is $33.09 per hour.
Persons: Lyft, , Uber, Sergio Avedian, Guy Organizations: Service, AAA, BI, Nationwide, Chicago, Business Locations: Southern, Atlanta, Dallas, Houston, Miami, Orlando, Charlotte
Lyft reported that drivers, on average, took home 88% of rider payments after external fees. AdvertisementIn recent months, several Uber and Lyft drivers have told BI that ride-hailing has become less profitable than it used to be. Lyft also noted that drivers can now see the breakdown of how each rider's payments are split between drivers, Lyft, and external fees. Still, 94% of Lyft drivers only drive less than 20 hours a week and use driving to supplement other income. In November 2023, Lyft agreed to pay $38 million to settle claims that it improperly collected some fees and taxes from New York drivers — Uber agreed to pay $290 million.
Persons: Lyft, , David Risher, Sergio Avedian, Uber, Guy, Avedian, he's, Kara Swisher, Dara Khosrowshahi, — Uber Organizations: Service, Drivers, Cleveland Uber, New, New York State, Elite, EV Locations: Cleveland, New York City, Seattle , California, New York, Minneapolis , Chicago, Massachusetts
Up to 450,000 people are expected to be in Vegas by Super Bowl weekend, and this influx of people has caused the city's hotel prices to surge. When big events come to town, whether it be the Super Bowl or Taylor Swift's Eras Tour , cities tend to get an economic boost . These economic impacts don't stop at cities' boundaries: surrounding areas like Boulder City could see an uptick in visitors and spending as well. He expects a similar — if not bigger impact — during Super Bowl week. An individual familiar with the airport's operations told the Las Vegas Review-Journal in a late January story that the airport's bookings around Super Bowl weekend were almost full to capacity.
Persons: , Christina Bennett, Rob Loredo, Loredo, Raffi Festekjian, Festekjian, Todd Cook, Cook, it's Organizations: Service, Vegas, Kansas City Chiefs, San Francisco 49ers, Allegiant, Super Bowl, Business, BI, Super, Formula, Las Vegas, Boulder City Municipal, Boulder Dam Brewing Company Locations: Boulder City , Nevada, Vegas, Las Vegas, Boulder, Boulder City
Coach Jim Harbaugh will reportedly make an average of $16 million a year with the LA Chargers. He'd surpass his brother John's annual salary and outearn all but three of his Chargers players. Denver Broncos head coach Sean Payton earns $18 million a year, while San Antonio Spurs head coach Gregg Popovich is tied with Harbaugh at $16 million. AdvertisementHarbaugh is also set to outearn all but three of his Chargers players, per the sports contract database Spotrac. Harbaugh's return to the NFL was one of many high-profile football coaching changes in recent weeks — the retirement of former Alabama head coach Nick Saban also made national headlines.
Persons: Jim Harbaugh, , Harbaugh, John — who's, Sean Payton, Gregg Popovich, Bill Belichick —, Keenan Allen, Khalil Mack, Mike Williams, Harbaugh's, Nick Saban, doesn't Organizations: LA Chargers, Chargers, Service, NFL, Los Angeles Chargers, Baltimore Ravens, Denver Broncos, San Antonio Spurs, New England Patriots, University of Michigan, Michigan, University of Washington Locations: Alabama
A boomer Uber driver's business had over $100,000 in earnings but only $20,000 in profits. But after Uber took its cut and his driving expenses were accounted for, his profits fell to about $20,000. The $44,000 deduction was an estimate for tax purposes, so it's possible his true vehicle expenses weren't quite that high. AdvertisementThat said, commissions and driving expenses took a significant cut out of his business's profitability. His first year driving Uber, 2016, was more eventful than he anticipated: He got caught in Hurricane Matthew while driving in Norfolk, Virginia.
Persons: boomer, , Dean Ceran, Kia Forte, Uber, he's, Ceran, it's, haven't, they're, Lisa Greene, Lewis, Greene, — Ceran Organizations: Uber, Service, BI Locations: Virginia, Hurricane, Norfolk , Virginia
But after Uber took its cut and his driving expenses were accounted for, his profits fell to about $20,000. How commissions and driving expenses reduce drivers' profitsOf Ceran's roughly $83,000 in total business expenses, $38,000 consisted of Uber's booking and service fees — effectively the commission the company takes from drivers' earnings. After accounting for Uber's commission — and before expenses — Ceran saw as much as $65,000 in Uber income enter his bank account in 2023. The $44,000 deduction was an estimate for tax purposes, so it's possible his true vehicle expenses weren't quite that high. His first year driving Uber, 2016, was more eventful than anticipated: He got caught in Hurricane Matthew while driving in Norfolk, Virginia.
Persons: , Ceran, Kia Forte, Uber, he's, they're, Lisa Greene, Lewis, Greene, — Ceran, he'd Organizations: Service, Business, BI Locations: Virginia, Hurricane, Norfolk , Virginia
Read previewWhen states across the US started legalizing sports gambling in 2018, Jimmy, a New York-based sports bettor in his 30s, was ready. Since January 2022, Jimmy and his cousin have bet nearly $1 million through FanDuel and netted roughly $35,000 in winnings, according to a document viewed by Business Insider. Don't bet more than you're willing to loseJimmy said establishing a bankroll and unit size are important steps for new bettors. The unit size is the percent of the bankroll — Jimmy said ideally it's 1% — that gamblers dedicate to the typical bet. Despite his success with sports betting, Jimmy said he and his cousin both have part-time jobs.
Persons: , Jimmy, FanDuel, Jimmy hasn't, they've, they'd, it's, bettor, parlays, shouldn't, Timothy Fong, Don't, he's, we'll Organizations: Service, Business, American Gaming Association, Sports, NCAA, NBA, WNBA, UCLA, Studies, National Council, Virgin Islands Locations: New York, Young, Canada, Virgin
AdvertisementThey decided to buy a home in the Fort Lauderdale area, and by that August, they'd said goodbye to Toronto. Warm weather, more affordable housing , and the lack of a state income tax are among the perks drawing movers to Florida. AdvertisementFlorida has warm weather, cheaper housing, and is good for businessFreudman said the weather is the biggest edge Florida has over Canada. The typical Toronto home costs about $816,000 compared to $784,000 in Fort Lauderdale, and it's even cheaper in Wilton Manors, the Fort Lauderdale "suburb" where the couple technically resides. He said other pros of the Fort Lauderdale area include the fresh seafood, the safe community, and the accessibility to Miami.
Persons: , Joel Freudman, Freudman, they'd, Eva don't, he's, Donald Trump Organizations: Service, Sunshine State, Business, Sunshine, Economic, Fort Locations: Florida, Toronto, Fort Lauderdale, Canada, South Florida, Wilton Manors, Miami
It will be easy to watch the Super Bowl, but many NFL games are out of fans' reach. But for many NFL fans, particularly those who live in a different state than the team they root for, watching football is rarely so easy. YouTube TV also provided access to a few Sunday afternoon Packers games on Fox. But several Packers games fell outside the NFL's regional coverage map , often leaving me with no choice but to watch Daniel Jones and the New York Giants. Yes, I had access to NFL Redzone through YouTube TV, but that just provided me with occasional peeks at the game I was missing.
Persons: , I'm, Daniel Jones, I've Organizations: NFL, Service, Chiefs, Dolphins, Green Bay Packers, Packers, YouTube, Sunday, Fox, New York Giants, NFL Sunday, DirecTV, NBA, Nielsen Locations: New York
Some told BI that they can't find other accommodating jobs and that gig work is a dead end. He said gig driving was one of his only options to supplement his disability benefits. Robert is one of many disabled gig drivers who say they have no other options to make a living. "Disabled gig workers can be forced to rely on gig work for income because of issues with exclusion and discrimination in traditional workplaces," Shruti Sannon, a technology-policy program director at the ACLU who authored a paper on disabled gig workers, said. For many disabled gig drivers with medical issues, gig work is a temporary but necessary step toward getting back on their feet.
Persons: Uber, , Robert, there's, he's, Shruti Sannon, Sannon, Lyft, they're, Omar Ford, Jason McConahy, it's, aren't, Douglas Kruse, Lisa Schur, Schur, Kruse, " Kruse, Shane, hasn't, I've, Rene, Richard H, Richard, I'd, Michael, Jacob Zinkula Organizations: Service, Lyft, Business, Rutgers University School of Management, Labor Relations, Rutgers, of Labor Statistics, Marine Corps, Air Force, Uber, Arizona State University Locations: Portland , Oregon, South Florida, Las Vegas, North Carolina, Denver, Phoenix, New Jersey
Read previewJason McConahy, a part-time Lyft driver in Las Vegas, sometimes drives as few as 10 hours a month. Several Uber and Lyft drivers have told Business Insider they've faced everything from rude comments to harassment while working — women drivers can face their own challenges. Business Insider asked six Uber and Lyft drivers why they value the social interactions that can come with ride-hailing. Riders, oftentimes, enjoy having someone to talk to as well, drivers told BI. "It's like therapy," said a Boston Uber driver in his 50s who asked to remain anonymous for fear of professional repercussions.
Persons: , Jason McConahy, McConahy, they've, Uber, Mark McCann, Larry, he's, Rich, Dean Ceran, they're Organizations: Service, Business, Atlanta Uber, Arizona Uber, Virginia Uber, Boston Uber Locations: Las Vegas, Dallas, Atlanta, Arizona, Virginia, Boston
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