Study: New Data Sources Are Transforming Workforce and Economic Development Research

Data, Data Sharing, Economic Development, Resources, Workforce
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In the fast-changing landscape of workforce and economic development, new data sources are unlocking fresh insights into how communities grow, how workers move, and how businesses thrive. From linked historical records to real-time credit card transactions, these innovations are revolutionizing regional and urban economics, helping economic and workforce development policymakers make more data-driven decisions.

A recent NBER study by economists Ran Abramitzky, Leah Platt Boustan, and Adam Storeygard explores the most exciting advances in regional data and how they are being applied to workforce and economic development. Here’s what you need to know:

Tracking Workforce Dynamics with New Data

  • Historical Census Linkages: Advances in data matching allow researchers to track individuals and families across generations, shedding light on workforce mobility, the impact of early-life economic shocks, and long-term labor market outcomes. This helps communities understand how historical economic shifts continue to shape today’s workforce.
  • Real-Time Job Listings & Business Openings: Platforms like Lightcast (formerly Burning Glass) and LinkedIn provide granular insights into job postings, occupational transitions, and demand for skills in different regions. These datasets allow workforce professionals to anticipate employer needs and shape training programs accordingly.
  • E-Commerce and Digital Transactions: Data from companies like Visa, JPMorganChase, and Alibaba provide a clearer picture of small business dynamics, consumer spending patterns, and local economic activity, offering an alternative to traditional surveys.

Measuring Economic Development and Regional Growth

  • Mobile Phone & Commuting Data: GPS and smartphone location data—collected from transit cards, ride-hailing apps, and cell tower records—provide a more detailed picture of where workers live and work, how they commute, and how access to transit affects job opportunities.
  • Satellite Imagery & Nighttime Lights: In areas with limited official economic data, researchers are using satellite imagery to measure urban expansion, infrastructure investments, and regional economic productivity. Nighttime light emissions, for example, are a strong proxy for GDP growth and business activity.
  • Business Formation & Firm Location Data: New sources of administrative data, including tax filings and real-time credit card transactions, provide more precise measures of where businesses are forming, how they survive, and what drives local entrepreneurship.

Why This Matters for Economic Development Professionals

These advances are not just academic—they’re practical tools for building stronger economies. Cities and regions can now use these data sources to:

✅ Refine workforce strategies by identifying high-demand jobs and skill gaps in real time.
✅ Improve infrastructure planning by analyzing commuting data to pinpoint transit needs.
✅ Measure the impact of economic policies by tracking business openings, closures, and spending patterns.
✅ Enhance site selection analysis with deeper insights into local consumer behavior and workforce movement.

As economic development professionals, we must stay ahead of the curve by leveraging these cutting-edge data sources. By integrating them into workforce planning, business recruitment, and regional policy decisions, we can create stronger, more resilient communities.

Want to learn more? Check out the NBER study or our C2ER.org for resources, data tools, and research updates.