Which American Cities are Leading the Economic Recovery?

While California's cities continue to be a drag on the country's job growth, cities in the Northeast and the South are doing better than average, says a new report from the Urban Institute.

1 minute read

August 9, 2012, 11:00 AM PDT

By Jonathan Nettler @nettsj


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."

Wednesday, August 8, 2012 in The Wall Street Journal

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