The unemployment rate in the United States was 5.8% in November. While that is down from 10% during the worst of the recession, it is still above 5%, which what is considered “normal” during a full recovery. However, six states had unemployment below 4% last month. Most have several things in common.
The states are North Dakota (2.7%), South Dakota (3.3%), Utah (3.6%), Idaho (3.9%), Minnesota (3.7%) and Nebraska (3.1%), according to the U.S. Bureau of Labor Statistics (BLS). Each of these states is directly adjacent to at least one other state on the list. Economic success, as measured by jobs, appears to be regional and not confined by state boarders. Another bit of proof of this is what is called the “West North Central” region based on BLS geographic divisions, which had a jobless rate of 4.3% last month. The region is made up of Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota.
The reason for low unemployment in North Dakota is the rise in fracking and other drilling for huge oil deposits. The presence of these industries is spread into adjacent states.
Further to the south, in Nebraska, the economy is aided by a strong agriculture industry. Idaho is the largest supplier of potatoes among all states, and one of the largest of wheat.
What the states share are a small population and one extremely healthy and comparatively large industry.
Other notes from the BLS on civilian labor force and unemployment by census region and division:
The District of Columbia had a rate of 7.4 percent. North Dakota again had the lowest jobless rate, 2.7 percent. In total, 20 states had unemployment rates significantly lower than the U.S. figure of 5.8 percent.
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