Diverse opportunities lead to more resilient labour markets – study - Central Banking

Study on Labour Markets

A study by the Federal Reserve Bank of Minneapolis found that diverse economic opportunities in cities lead to more resilient labour markets.

Researchers François de Soyres, Simon Fuchs, Illenin Kondo, and Helene Maghin examined local labour markets in France and discovered that areas with diverse economies experience less workforce churn during downturns and less significant drops in labour inflows.

Economic concentration makes it harder for areas to recover from shocks.

The study, published on October 10, highlights the benefits of a diverse range of economic opportunities for workers.

Authors conclude that diversity of economic opportunities generates sizeable welfare gains for workers.

Author's summary: Diverse economies lead to resilient labour markets.

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Central Banking Central Banking — 2025-10-14

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