The Tenth District's defining industries: how are they changing?

Abstract

The economy of the Tenth Federal Reserve District has become increasingly more services-based in recent years. While this transformation has lessened many of the historical differences with the rest of the nation, the regional economy still remains distinct, especially in some states. Wyoming, for instance, still has the most unique industrial structure in the country. And Nebraska, New Mexico, and Oklahoma still rank among the top third of states with economies that differ from the rest of the nation. ; What industries make the Tenth District so different, and what can they tell us about the future of the regional economy? ; Wilkerson and Williams examine the “defining” industries of the region. They find that the performance of a relatively small group of these industries track closely with overall job growth in each state. In other words, states whose defining industries have prospered in recent years have grown quickly overall, while states whose defining industries have struggled have grown sluggishly. Thus, identifying a state’s defining industries and understanding how they are changing can provide vital context for policymakers seeking to improve prospects for growth—as well as help identify the types of economic shocks that might threaten the region in the future.Federal Reserve District, 10th