News

Unemployment rates fall in 90 per cent of US cities as more Americans give up job search

WASHINGTON – Unemployment rates fell in nearly 90 per cent of large U.S. cities in March, though most of the declines likely occurred because more Americans stopped looking for work, rather than found jobs.

The Labor Department says unemployment rates fell in 333 of the 372 largest metro areas. They declined in 22 and were unchanged in 17.

Nationwide, the unemployment rate dipped to 7.6 per cent in March from 7.7 per cent in February. Fewer people said they were unemployed, but only because they gave up on their job hunts. The government only counts people as unemployed if they are actively looking for work.

Hiring slowed sharply. Employers added only 88,000 jobs in March, a steep drop from the average gains of 188,000 a month in the preceding six months.

Still, there were signs of long-term improvement in the metro unemployment data. Nearly 160 metro areas had unemployment rates of 7 per cent or below, up from 113 a year earlier.

And while 44 cities still have unemployment rates of 10 per cent or higher, that’s down from 63 a year earlier.

The metro unemployment data isn’t seasonally adjusted for trends like the hiring of extra retail employees over the winter holidays. As a result, it can be more volatile than the national data.

The metro area with the biggest decline in unemployment in March from February was Blacksburg-Christiansburg, Va., where the rate fell to 5.6 per cent from 7 per cent. It was followed by Florence-Muscle Shoals, Ala., where the rate fell to 6.4 per cent from 7.7 per cent.

The next biggest drops were in Panama City-Lynn Haven, Fla.; Myrtle Beach, S.C.; and Springfield, Ill.

The metro area with the biggest increase was Baton Rouge, La., where it rose to 5.8 per cent from 5.5 per cent. Next was Bowling Green, Ky., where the rate increased by almost the same proportion: to 7.8 per cent from 7.4 per cent.

They were followed by Lubbock, Texas; Lake Charles, La.; and Lawrence, Kan.

The lowest unemployment rate was in Midland, Texas, at 3.1 per cent. Midland displaced Bismarck, N.D., which has frequently boasted the lowest rate in the nation, largely because of the oil and gas drilling boom in that state. Bismarck’s rate was 3.6 per cent.

Yuma, Ariz., and El Centro, Calif., had the highest unemployment rates, at 26 per cent and 23.7 per cent, respectively. The two areas are adjacent and include a large number of migrant farm workers.