Thinking of moving to find work or a better opportunity? Well here are five cities that you most likely should avoid since the availability of employment is slim pickings. Although over all the economy is improving there are metropolitan areas that are lagging well behind the national averages.
The list comes from 24/7 Wall Street which "identified the 10 metropolitan statistical areas with the highest unemployment rates. We also included U.S. Census Bureau data for poverty, income, high school and college attainment levels, and employment by sector, all from 2011."
Note that Atlantic City was impacted by Hurricane Sandy and has the best chances of 'bouncing back' as full recovery proceeds in that area.
1. Yuma, Ariz.
- Unemployment: 27.5%
- 12-month unemployment change: 1.2 percentage points
- Pct. below poverty line: 21.8%
No metropolitan area’s employment situation is worse off than Yuma, which 27.5% of its labor force was considered unemployed in November 2012. This rate could drop in the coming months. Regional leaders point out that the winter months tend to spur employment in fields such as hospitality as people flock to the area to escape the winter cold. They also point out that agriculture jobs tend to be very seasonal in nature, with considerable temporary hiring taking place in the winter months. More than 10% of the metro Yuma labor force works in agriculture compared to just under 2% of the U.S. population as a whole. Much like many other cities with high unemployment rate, the Yuma area’s poverty rate is high. In 2011, 21.8% of the area’s residents lived below the poverty line, significantly higher than the 15.9% across the country. The median household income was also quite low at $38,390 — more than $12,000 below the national median.
2. El Centro, Calif.
- Unemployment: 26.6%
- 12-month unemployment change: -2.3 percentage points
- Pct. below poverty line: 26.8%
In November 2011, El Centro had an unemployment rate of 28.9%, then the highest of any metropolitan area in the U.S. Twelve months later, El Centro’s unemployment rate was still the nation’s second-highest, at 26.6%. Worse, because much of the area’s employment is seasonal, the unemployment rate has, since 2009, exceeded 30% in the late summer months. Without steady jobs, many area residents live in poverty. As of 2011, 26.8% of people in El Centro lived below the poverty line, one of the highest rates among all metropolitan areas and more than 10 percentage points above the 15.9% figure for the U.S. as a whole.
3. Yuba City, Calif.
- Unemployment: 15.8%
- 12-month unemployment change: -0.8 percentage points
- Pct. below poverty line: 16.3%
Like many of the metropolitan areas with very high unemployment, Yuba City’s economy is very dependent on agriculture. Six percent of the area’s labor force works in agriculture, more than three times the proportion nationwide. Although the unemployment rate of 15.8% is still the third highest in the country, it is down from 16.6% in November 2011. One field driving this improvement is construction. According to a recent analysis by the Associated General Contractors of America, construction employment in the metropolitan area rose 24% between August 2011 and August 2012, more than all metro areas in the country.
4. Merced, Calif.
- Unemployment: 15.7%
- 12-month unemployment change: -0.7 percentage points
- Pct. below poverty line: 27.4%
Although Merced’s unemployment rate had fallen by 0.7 percentage points over the twelve months ending in November, at 15.7% its rate was still the fourth-highest among all U.S. metro areas. According to the San Francisco Chronicle, the Merced area, “historically has had a high unemployment rate because of seasonal employment swings in agriculture and a poorly educated population.” Many residents in Merced also lack a formal education. As of 2011, just 65.2% of the area’s residents had at least a high school diploma versus 85.9% for the U.S. as a whole.
5. Atlantic City-Hammonton, N.J.
- Unemployment: 14.5% (tied-5th lowest)
- 12-month unemployment change: 2.2 percentage points
- Pct. below poverty line: 13.4%
Closed casinos and declining tourism hit Atlantic City hard following Superstorm Sandy, leading to a temporary surge in unemployment. The jobless rate in the metropolitan area rose 2.2 percentage points between November 2011 and November 2012, the highest unemployment rate growth of all U.S. metropolitan areas. Most of that jump in unemployment took place in the last month of that year due to the storm. Government officials and employment experts note that Atlantic City’s unemployment may go down in the coming months as construction workers flock to the area to rebuild after Sandy, which in turn could give the gaming industry a much-needed boost. The downside is many of these workers could come from out of state and may not stay in the area long-term.