Cities to rebound, but job growth stunted

By Julianne Pepitone, staff reporter


NEW YORK (CNNMoney.com) -- The economies of many cities will begin to rebound in 2010, but a full recovery is far off, especially for the labor market, said a metro area outlook report released Wednesday.

The report, from United States Conference of Mayors, forecasts the economies of 363 metro areas. It said the jobless rate was up more than 50% over the year in almost one-third of cities as of November.

"The recession ... was truly widespread and a tremendous burden in many metropolitan areas across the nation," the report said, calling metro areas "the nation's economic engines."

It noted cities make up 86% of U.S. employment and 90% of output, "so it comes as no surprise that the nation's economic centers were very badly damaged by persistent job cuts and surging unemployment through 2009."

The report predicted the nation's unemployment rate will peak in the first quarter of the year, averaging 10.2% between January and March compared with 4.9% in 2008.

Regional difficulties: The West, Southeast and Upper Midwest regions of the country have been particularly hard hit, the report said.

Four states contain 22 of the 25 cities with the highest unemployment rates: 11 in California, seven in Michigan and two each in Illinois and Florida.

"Unemployment has skyrocketed in these areas, because they have been hit particularly hard by the correction in the real estate market and/or are heavily dependent on the manufacturing sector," the report said.

On the other side, the Plains and Mountain regions have been somewhat "insulated" from the worst of the recession because the housing bubble did not hit these areas as hard as others.

Outlook: The report said some economic indicators have improved, including data on exports, consumer spending and income. But the labor market will take longer to recover.

Because cities contain a large percentage of the U.S. population and comprise much of the economic activity, the report said states should be investing more of their stimulus money in metro areas in order to bolster the overall economy. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,444.56 19.71 0.12%
Nasdaq 4,107.88 21.65 0.53%
S&P 500 1,869.05 6.74 0.36%
Treasuries 2.72 0.08 3.19%
Data as of 3:17pm ET
Company Price Change % Change
Bank of America Corp... 16.17 0.04 0.25%
Facebook Inc 59.32 -0.40 -0.67%
General Electric Co 26.72 0.60 2.30%
Micron Technology In... 23.90 1.43 6.34%
Cisco Systems Inc 23.20 0.16 0.72%
Data as of 3:02pm ET
Sponsors

Sections

New service lets anyone transfer money up to $900 from one Walmart to another in the U.S. for a fee of $9.50. More

Obama's proposed budget would raise $1.4 trillion more revenue and increase noninterest spending by $446 billion more than current policies, the CBO said in a new analysis. More

Schwinn, Trek and Cannondale are all iconic American bicycle brands. But none of them are made in the United States. More

As Detroit moves closer to reaching a bankruptcy deal, retired civilian workers are poised to be left worse off than firemen and police officers. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.