U.S. Unemployment Pockets Become More Severe

January unemployment fell to 8.2%. Recent weekly jobless claims have fallen to multiyear lows and are now consistently below 400,000. The figures mask a growing regional jobs problem. It has worsened, at least in comparison to the national trend, and has become nearly inexorable in some parts of the United States. The trouble creates economic and policy problems, neither of which can be easily addressed.

December state-by-state data on unemployment show that the rate is well into double digits in four states — California, Nevada, Rhode Island and Mississippi — and the District of Columbia. The second highest rate is in the largest state by population, California, where it is 11.1%. Each of these states has shown progress in the rate of joblessness over the last year, but it has been nominal.

These states have different reasons for their jobs problems, which makes it more difficult to address them on a national level. Rhode Island is an old industrial state that has lost most of its industrial jobs. Unemployment in Central California is 14% in some areas. Farm work has become more scarce there. In Nevada the booming real estate market collapsed, and in Las Vegas the gaming industry has been troubled. Much of the District of Columbia has poor and unskilled workers. Mississippi has lost some of its manufacturing base and jobs along the Gulf of Mexico.

The federal government has started to consider jobs stimulus measures. Some proposed by the Obama administration, which include infrastructure investment, are likely to be killed by the Republican members of Congress. There may not be any comprehensive job stimulus bill until after the national elections.

Even a national jobs aid bill, or bills, would do little to address the specific concerns of the states with the highest unemployment. Each is unique. A solution that is national and based on one-size-fits-all polices will overlook many of the deeply rooted regional problems. And there is the political issue that a member of the House from Connecticut does not want jobs money given to California to dwarf what his state gets, even if California has greater problems. It would be hard for that member to explain his decision to voters, some of whom are out of work or have friends and family who are. That holds true even though unemployment in his state is only 6.8%.

The regional jobs problem will not be solved, because the jobs problems will only be addressed nationally, if at all.

Douglas A. McIntyre