Stephanie Ferguson
Director, Global Employment Policy & Special Initiatives, U.S. Chamber of Commerce
Published
September 15, 2023
The state of Mississippi has a favorable landscape for businesses and individuals, with a diverse economy, strong labor market recovery, and a robust small business ecosystem. Educational attainment, quality of life, and cost of living factors remain promising.
The Worker Shortage Across America
Explore the interactive map below to see the impact of the worker shortage crisis in each state.
The Chamber’s Worker Shortage Index ratio indicates the number of available workers for every job opening. A ratio above 1.0 indicates a surplus of available workers compared to job openings.
Mississippi’s Labor Market
Prior to the pandemic, Mississippi's labor market faced challenges. While the state's unemployment rate stood on par with the national average of 3.5%, the labor force participation rate was relatively low at 55.9% in comparison to the national average of 63.4%. There were only 52 available workers for every 100 open jobs.
As of August 2023, Mississippi's current labor market has mostly recovered and is displaying signs of continued improvement. The unemployment rate is slightly lower than it was before the pandemic and the state's labor force participation rate barely lags behind its pre-pandemic levels. However, it is still eight full points lower than the national average.
Mississippi is also grappling with a workforce shortage, evident by the fact that there are only 49 available workers for every 100 open job positions in the Magnolia state.
Mississippi’s Business Environment
Mississippi's business environment is diverse, encompassing a rich agricultural economy, several large universities, and serving as the headquarters for a number of large companies.
Among the industries monitored by the Bureau of Labor Statistics, the trade, transportation, and utilities sector, as well as the government sector, employ the highest number of Mississippians, while the financial services sector employs the fewest. Mississippi’s employment landscape is a result of strong automotive, shipbuilding, furniture, paper, and chemical production. The state is also a hub for aerospace innovation, with leading manufacturers in unmanned aerial systems, manned aircraft, and space technology, including NASA rocket engines and Airbus helicopters.
Mississippi boasts a thriving small business ecosystem, with 99.3% of all Mississippi businesses falling into this category. Nearly half of Mississippi's workforce works within small businesses. Within this dynamic landscape, women own 44.5% of small businesses, 31.2% are minority-owned, 1.9% are owned by Hispanics, and 8% are veteran-owned.
Mississippi’s Educational Attainment
Nearly 88% of Mississippi’s population has obtained their high school diploma or its equivalent. A quarter of the population has attained a bachelor's degree, while 9.6% have secured a graduate degree, both below the national averages.
Fortunately for employers in the state, the vast majority (77.4%) of Mississippi college freshmen are remaining in the state for their higher education, where the average in-state tuition is $8,604. Out-of-state tuition in the state is $19,402, significantly less expensive than the national average out-of-state tuition of $28,000. In total, roughly 163,000 students are enrolled in a Mississippi college for the 2022-2023 school year. These students supply a rich talent pool from which local employers can recruit talent.
Quality of Life
Mississippi has the lowest median household income among all states and the District of Columbia, with a median income of $48,610. Mississippi has a tax rate with three brackets that range from 0% to 5%.
Only 14% of Mississippi’s workforce work remote at least one day a week. For those commuting into an office, the average commute time is 25 minutes. The Council for Community and Economic Research measures states’ costs of living compared to the national average of 100. Mississippi boasts the nation's lowest cost of living index, with a score of 85.3. The median rent settles at $789, while the median home cost is $171,998, both falling well below the national average. Nearly 69% of the population owned their housing unit in 2021. The state experienced a negative growth rate of 0.61% from 2020 to 2022.
Immigration
In the U.S., immigrants tend to be of working age in comparison to native-born individuals. As workers, these immigrants are also contributing to support programs like Medicare and Social Security.
Looking at Mississippi in particular, immigrants comprise 2.1% of the state's population, totaling 63,444 individuals. Their collective spending power amounts to $1.5 billion, while their tax contributions reach $473.8 million.
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About the authors
Makinizi Hoover
Makinizi Hoover is the Senior Manager of Strategic Advocacy at the U.S. Chamber of Commerce. Her work includes the development and project management of comprehensive data centers that serve as a valuable resource for policymakers, businesses, and the public.
Stephanie Ferguson
Stephanie Ferguson is the Director of Global Employment Policy & Special Initiatives. Her work on the labor shortage has been cited in the Wall Street Journal, Washington Post, and Associated Press.
Isabella Lucy
Isabella has created stunning visualizations tackling pressing issues like the worker shortage, the benefits of hiring veterans, the lifespan of small businesses, and the future of work.
