An imbalance between the supply and demand for labor also occurs geographically, and is known as regional unemployment. For many countries, growth is not uniform across the landscape. Some areas may enjoy rapid growth and thus have a strong demand for labor, while other locations are stagnant and the surplus labor leads to high local unemployment rates. In the recession of 1981-82, the middle part of the United States was called the 'rust belt' due to its large manufacturing economy having fallen on hard times in competing with more efficient foreign producers. In contrast, the recession had a minimal impact on the southwestern region of the United States, which supported many jobs in the fast-growing energy, technology, and defense sectors.
International competition is an additional source of long-term structural unemployment.
In developed countries the average wage for less-skilled workers is relatively high compared to that in LDCs due to greater living costs, union and worker power, and tradition. As the world economy has evolved, businesses and corporations have increasingly sold their goods in a global marketplace. In order to compete internationally, firms need to produce at the lowest possible costs. While this argument does have merit, it is often twisted to support the goals of politicians who wish to play on the fears of the electorate. Individuals stuck in occupations that allow for little future growth need to be retrained and educated to gain the skills necessary to work productively in areas where they are needed.