The AP reported today that unemployment has fallen from August to September in 95% of 372 metropolitan areas. That is on top of the news reported earlier this month that overall unemployment has fallen to 7.8%. From today’s AP news report:
– 355 cities out of 372 (95%) saw improvement from August to September;
– 11 saw increased unemployment; and
– 6 cities remain unchanged.
The news report also noted the positives year over year for the following cities:
- Las Vegas unemployment is now 11.5% versus 14% a year ago
- Miami unemployment is now 8.4% down from 10.4% a year ago
- Milwaukee is down to 6.9% from 7.6% over the past year
- Cleveland is down to 6.5% from 7.5% over the past year
These data points continue to support the slow and steady progress we have made over the past 30 months. People, pundits and politicians keep looking for silver bullets, but recoveries from housing led recessions typically follow the pattern we have been seeing. The stock market recovers first, the jobs slowly come back, the housing market climbs back and the remaining jobs fill out. As noted in an earlier post, housing recessions, on average, take six years to recover from per a study of 18 historical recessions around the world. If we started the recession in 2008, adding six years would take us through the end of next year, on average, to fully recover.
Of course, we have many other variables in our way – Europe’s debt crisis and China’s fall from a very heady growth. Yet, with that said, we have witnessed the slow progress toward ending our troubles. Again, non-partisan economists give due credit to the President’s stimulus package and the saving of the US auto industry. Absent those two things, it would have been a tougher pill to swallow.
I saw this news as very encouraging and hope you do as well.