Friday, July 17, 2009

Geography of Unemployment

I published a the following comment on a New York Times article that discussed how unemployment varies from state to state.

What about the state-by-state gap? How many of those in the hardest hit states are aware of which states & metros are fairing the best? How many would be willing to move to North Dakota?

Obviously some are stuck in their homes, but I live in an area hit by manufacturing losses & while Logan County, IL’s population is likely declining, even most renters & roommates aren’t looking out of state. The few that look for work outside of Logan County look to a neighboring county. The only person I’ve met who moved, moved in with his parents in Kankakee, an area far worse off. For years, I’ve known about the low unemployment in North Dakota & DC metro region & have mentioned it to a few people last winter, all single, all 18-30, none of them home owners, none have moved, & all of them either not working or making less than $10/hour. It appears to me that the safety nets, either governmental or through family & friends are strong enough, most people don’t want to trade that in the life they know, for a job in an unfamiliar place.

I’m a 27 year old CPA, lost my job in early May, & after two months of unemployment & having been overqualified for every job I’ve had since June 2004, I’ve largely given up finding work in central Illinois & recently began applying for work outside central Illinois, even though my house is paid off & unemployment is more than enough to live on. I’m not happy about it. I understand the resistance of others, including renters & couch-surfers. There is a severe downside to leaving. I’m just unusually career-minded. Although some cities are so expensive, I have to increase my pay requirements for any position there.

I saw an article in Business Week that addressed geographic mismatches (Google: Business Week Help Wanted) & I found it interesting that in the comments section many people wrote that they wouldn’t be willing to move for a job because jobs aren’t secure enough today. Perhaps it’s reasonable for people in hard hit areas to stay. There may be jobs in Bismarck, but it may not come with a substantial increase in standard of living, even for the unemployed, certainly not for unskilled workers & without job security what sense does it make to leave everyone a person knows for an unfamiliar city?

In addition, many places have cost-of-living issues. Back, when people would use the phrase “jobs Americans won’t do,” I knew lots of people who wanted those jobs, but weren’t going to move to somewhere urban & expensive in order to do those jobs. Even now, I can’t see why a less-skilled unemployed person in the Rust Belt would move to an expensive city like DC for a job, even though DC has a better than average job market. In spite of working, his or her standard of living would likely decline. Something needs to be done about the local housing & development regulations that keep people out.

One person replied to my comment by stating: "One winter in Bismarck will make you regret that move, Ken. Job or no job."-MM

State by state map showing broad unemployment across the country

County by County map showing unemployment across the country

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