Diversification and Reinvention Keeps Chicago Going Strong

Despite declining manufacturing employment, Chicago has continuously reinvented itself -- resulting in a thriving, diverse economy that leverages the throngs of young professionals continually attracted to the city.

1 minute read

November 10, 2006, 7:00 AM PST

By Alex Pearlstein


"As other Midwestern cities have struggled with waning manufacturing employment, Chicago has survived by repeatedly reinventing itself. Once a monument to retail, banking, meat-packing and manufacturing, it now boasts a strong presence in accounting, computer-systems design, legal services and consulting, among others."

"Based on an economic measure called industrial diversity, Chicago has developed an economy that more closely reflects the broad national economy than almost any other city in the country. That means it is less exposed to the stumbles of any given industry than cities in the lower half of the rankings."

"With its lakefront parks, an extensive public-transit system and a thriving arts and culture community, Chicago attracts young professionals from around the country for jobs with relatively high incomes."

"Like the fast-changing weather here, not all is sunny. Per capita income growth has been constrained, perhaps by the city's vast influx of Mexican immigrants, says William Testa, Midwest economist for the Federal Reserve Bank of Chicago...Chicago also remains challenged by poverty, crime and racial segregation, though by some measures they have stabilized or eased somewhat during the past decade."

[Editor's note: Although this article is only available to WSJ subscribers, it is available to Planetizen readers for free through the link below for a period of seven days.]

Wednesday, November 8, 2006 in The Wall Street Journal

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Hot air balloons rise over Downtown Boise with the State Capitol building visible amidst the high rises.

The Five Most-Changed American Cities

A ranking of population change, home values, and jobs highlights the nation’s most dynamic and most stagnant regions.

April 23, 2025 - GoodMigrations

People biking along beach path with moored ship in San Diego, California.

San Diego Adopts First Mobility Master Plan

The plan provides a comprehensive framework for making San Diego’s transportation network more multimodal, accessible, and sustainable.

May 2 - SD News

Sleeping in Public

Housing, Supportive Service Providers Brace for Federal Cuts

Organizations that provide housing assistance are tightening their purse strings and making plans for maintaining operations if federal funding dries up.

May 2 - KSL

Conductor walks down platform next to Amtrak train at station in San Jose, California.

Op-Ed: Why an Effective Passenger Rail Network Needs Government Involvement

An outdated rail network that privileges freight won’t be fixed by privatizing Amtrak.

May 2 - Streetsblog USA

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Senior Manager Operations, Urban Planning

New York City School Construction Authority

Building Inspector

Village of Glen Ellyn

Manager of Model Development

Central Transportation Planning Staff/Boston Region MPO