December U.S. Metropolitan Employment and Unemployment Data

The latest BLS data release on Metropolitan Area Employment and Unemployment for December 2006 shows that the unemployment rate at the national level remained constant at 4.3%. Compared with the previous month, more metros reported unemployment rates below 3.0% (49 versus 42). Additionally, Katrina-ravaged areas in Louisiana (Baton Rouge, Houma-Bayou Cane-Thibodaux, and Metairie-Kenner), Mississippi (Gulfport-Biloxi and Pascagoula), and Texas (Beaumont-Port Arthur) showed strong signs of recovery by taking the top spots for reduced unemployment rate over-the-year.

Source: Bureau of Labor Statistics

Regional Winners and Losers

The areas with the lowest unemployment rate are geographically concentrated in areas that are attracting jobs and people in large numbers. Of the 20 metros with the lowest unemployment rate, Florida contains five by itself, and combined with Virginia's Harrisburg and Charlottesville gives the South Atlantic region over a third of the list. Much of the rest of the top 20 is saturated with Mountain-West standouts: Billings, MT; Idaho Falls, ID; and all five metros in Utah (Logan, Provo-Orem, St. George, Salt Lake City, and Ogden-Clearfield).

At the opposite end of the spectrum are the struggling inland metropolitan areas of California. Facing labor shortages, contracting IT and agricultural sectors, and an abrupt housing correction, the Golden State claims exactly half of the bottom-20 slots with highest unemployment. Filling out much of the rest of the underperforming metro areas are those in the rust belt, which continues to shed manufacturing jobs; all eight areas in South Carolina, which in spite of strong service sector growth, continues to lose its foothold in textiles; and finally, urban centers still facing the aftermath of Hurricane Katrina.