Document Type

Working Paper

Publication Date

6-22-2026

College/Unit

Regional Research Institute

Document Number

Working Paper Number 2026-01

Department/Program/Center

Regional Research Institute

Abstract

Recent decades have witnessed significant economic transitions that have disrupted traditional economic activities and reshaped the labor force. Occupational connectivity, which captures how easily workers transition to other growing occupations, may be an important factor for local labor market resilience and development. Using county employment shares and a skill-based occupational matching matrix built upon O*NET data, this study explores how occupational connectivity affects local labor market outcomes. Our findings suggest that counties with higher levels of occupational connectivity are associated with better labor market outcomes and more stable population dynamics, even after accounting for local industry mix. These results highlight the importance of occupational networks as a distinct and complementary tool to traditional industry policy for promoting economic development.

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