Permanent Value

Week in Review 5/13/13

Bruce Doole
May 13th, 2013


Cincinnati, Cleveland and Dayton, Ohio

According to the U.S. Bureau of Labor Statistics, since November 2007 Cleveland has lost approximately 5% of its labor force (59,200 workers), while since May 2009, Cincinnati lost 4% of its labor force (39,000 workers). Job growth has dwindled in Ohio’s main industry-manufacturing. Amy Hanauer, executive director of Policy Matters Ohio, believes this is happening because people are getting discouraged and leaving the labor market. Since the financial crisis, only one fifth of the 388,000 jobs lost in Ohio have been regained.

Phoenix and Tucson, Arizona

The effects of the housing bust still linger in Arizona. In the crisis the construction sector cut over half of its jobs, and as a result progress is down to a trickle. However, there are other factors beside construction that play a role in the decline-although Nevada was the epicenter of the housing bust, their labor force was not hit as hard as Arizona’s.
The crisis caused Phoenix to lose 3% of its labor force (64,000 workers), and cause Tucson to lost 6% of its labor force (29,000 workers). The decline has hit men ages 25-34 and women ages 45-59 the hardest. In addition, stricter immigration laws have cause the Latino labor force to decline.

Hartford, Bridgeport and New Haven, Connecticut

According to Alissa DeJonge, director of research at the Connecticut Economic Resource center, as the recession ended and the stock market began improving, the number of retiring Baby Boomers began rising. Meanwhile, the unemployment rate among young minorities has increased in Connecticut’s urban centers. Orlando Rodriguez, senior policy fellow at Connecticut Voices for Children believes that this is happening because the younger minority workers are waiting until the state’s economy improves before they attempt to reenter the labor force.
Detroit and Kalamazoo, Michigan and Milwaukee, Wisconsin

Michigan’s population was declining even before the recession because of the auto industry’s relocation of jobs. Three years ago, Detroit’s population fell to its lowest level since 1920, according to the U.S. Census.
Manufacturing cities in the Midwest are also facing declines. For example, Milwaukee lost 2% of its labor force (16,000 workers) since June 2009, while Kalamazoo lost 10% of its labor force (17,500 workers) since January 2007.

Source: CNN Money