Tuesday, July 20, 2010

The Puzzle of State-by-State Unemployment Rate Variance - Alpha

National unemployment is high at nearly 9.5%, but some US states are quite healthy!
The WSJ today has an excellent graphic on it:
http://blogs.wsj.com/economics/2010/07/20/most-states-post-drop-in-jobless-rates/

Unemployment Rate at Highest Level in 3 Decades


State-by-State Unemployment Varies a Lot

KEY POINTS TO NOTE

-The Dakotas are at 3-4%!

-The agricultural Midwestern states are low too:
Nebraska at 4.8%, Iowa and (diversified) Minnesota at 6.8%.

-New Hampshire is at 5.9% and Vermont at 6% - these are healthy northeastern states.

-States with failed, subsidized industries (autos in Michigan/Indiana/Ohio) and real estate/casinos in Nevada are crushed:
13% and 14% unemployment in Michigan and Nevada.

For me, the biggest political/economic national problem in the US is JOBS. So I ask: Why is there such a huge divergence between the states?
Among big states, why are TX and NY doing well at 8%, while CA and IL are getting hurt at 12% and 10%?

Few to no economists are studying the divergences, and I think this is a fascinating and very important problem!

Can anyone send me an explanation for these data points?

1 comment:

  1. That graphic has made very nicely. The national unemployment rate is increasing rapidly and government require to come up with better plan to make more employment for people. I've found my employment through doing college essay writer for pay anyway, I've great time reading this post.

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