Unexpected Employment Setback in December 2009

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After November's encouraging picture of improvement for the jobs market, December proved a disappointing setback. Even though the national unemployment rate remained unchanged, 43 states and the District of Columbia saw over-the-month job loss, with an increase in the unemployment rate. Yes, the pace of job loss remains slower than earlier in 2009, but improvement is spotty, interspersed with setbacks, and this has many concerned about the health of the economy.

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Some states saw job creation, though. Virginia added 9,500 jobs in December, prompting the state to lead the pack with an over-the-month increase in employment. Other states that saw job creation include Oklahoma, Oregon, New Hampshire and Washington. Additionally, North Dakota, Nebraska and South Dakota remain the states with persistently low unemployment rates.

The West continues to have the highest regional unemployment, led by California with its loss of 38,800 jobs in December. Texas offered disappointing data in December as well. After some months of leading the country in job creation, Texas suffered a setback by losing 32,900 jobs. Other states that saw a high amount of job loss in December 2009 include Ohio, Illinois, Michigan and Wisconsin.

If you do the math, you can see that the job losses in some states far exceed the job creation in the lucky few. Additionally, some contend that the national unemployment rate is really around 17.3%, since the government doesn’t count those who have stopped looking for jobs and whose unemployment benefits have run out. Until more states start creating jobs, the economic recovery will remain sluggish. And if you are looking for a job, it is a good idea to try states where job creation is happening, and states with low employment.