Which American Cities are Leading the Economic Recovery?
Conor Dougherty discusses the findings contained in a new report released this week by the Urban Institute. "Despite a nascent real-estate recovery, cities that were hard hit by the bust remain worst off while southern cities, buoyed by faster population growth and industries like manufacturing and energy exploration, remain the most insulated by the recession," writes Dougherty, summarizing the report's results. "Most of the rest of the nation remains a hodgepodge of conflicting trends that are emblematic of the jagged national recovery."
The reason for the wide variation in job growth can be attributed the industry composition of local job markets. For instance, according to the report, "Metros with large Education and Health and, in some cases Government, sectors were generally resistant to the worst negative employment effects during the recession and remain relatively strong in the recovery. Other areas were hit harder but are recovering well -these include metros with focal Manufacturing, Professional and Business Services, and to a lesser extent Leisure and Hospitality and Trade, Transport, Utilities industries."
However, "The areas of highest concern are metros that are the 'Vulnerable' metros, which have experienced both steep recessions and slower than average recoveries, include many metros dominated by Retail Trade, Leisure and Hospitality, or Trade, Transportation, and Utilities."