| I'm Michael Sasso, an economics reporter in Atlanta. Today we're looking at the record wave of migration to small US towns. Send us feedback and tips to ecodaily@bloomberg.net or get in touch on X via @economics. And if you aren't yet signed up to receive this newsletter, you can do so here. - China investors expect $283 billion of new stimulus this weekend.
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Young Americans increasingly are done with the high fashion and trendy loft living of big metros, leading an unprecedented migration to small US cities. Since 2020, the country's small towns and rural areas have been attracting younger adults at the highest rate in nearly a century, according to Hamilton Lombard of the University of Virginia's Demographics Research Group. And rather than returning to pre-Covid trends, the movement only accelerated last year, Lombard wrote in a recent report. The phenomenon started before the pandemic. In 2019, Richard Florida, a professor of economic analysis and policy at the University of Toronto, penned a Bloomberg CityLab article pointing to data showing that superstar metros like New York and Los Angeles were losing some of their talent edge to places like Jacksonville, a fast-growing city on the Atlantic coast of northeastern Florida.  Hamilton Lombard, University of Virginia The pandemic sped up the trend, as remote work and surging home prices sent young people to surprisingly far-flung places. Since 2020, two-thirds of the population growth among people ages 25 to 44 occurred in cities with fewer than one million residents or in rural counties, Lombard found. In the previous decade, around 90% of the growth in that age group happened in metros of 4 million people or more. Not all rural areas are equal. Young generations are still leaving poor parts of the country — rural areas of the Appalachians, notably, are losing population at an alarming rate. Typically the places that attract the most young adults have great amenities and attractive climates — think Chaffee County near the popular Aspen ski resort in Colorado or the scenic Blue Ridge Mountains in Georgia. Economically, the move away from big metros has made it harder for employers to fill positions. "This labor shortage is expected to worsen after 2025 as the number of Americans turning 18 begins a multi-decade long decline," Lombard wrote. - The European Central Bank will speed up interest-rate cuts over the months ahead to bolster the economy.
- The Bank of Korea cautiously joined a global wave of central banks cutting rates as it finally saw enough cooling of inflation and property prices to shift its attention to supporting the economy.
- Argentina's monthly inflation reached the lowest level since late 2021, scoring a significant win for President Javier Milei.
- Chicago Fed President Austan Goolsbee said he doesn't see convincing evidence that the economy is overheating.
- India's economy will likely take only a marginal hit from Donald Trump's proposed tariff hikes on all countries, according to Bloomberg Economics.
Coming on the heels of a massive US ports strike and a continuing stand-off between Boeing and its workers, on the other side of the Atlantic the new UK government has unveiled a package of job rights aimed at an incremental tilting of economic power toward employees. "It is yet another sign that economies are making a huge departure from the old paradigm, where workers in developed countries saw their middle-class status eroded by decades of neoliberal policies," Stefan Koopman senior macro strategist at Rabobank, wrote in a note Thursday.  Junior doctors strike on a picket line outside St. Thomas' Hospital in London, June 27, 2024. Photographer: Carlos Jasso/Bloomberg Provisions in the bill should, in time, support consumption as workers need not save as much, Koopman wrote. "The implementation of these measures will exert upward pressure on firms' marginal costs, which, if demand in the economy is strong enough, can lead to an increase in markups and prices," he also said. Bloomberg New Economy: The world faces a wide range of critical challenges, ranging from ongoing military conflict and a worsening climate crisis to the unforeseen consequences of deglobalization and accelerating artificial intelligence. But these challenges are not insurmountable. Join us in Sao Paulo on Oct. 22-23 as leaders in business and government from across the globe come together to discuss the biggest issues of our time and mark the path forward. Click here to register. | 
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