STOCK MARKET WATCH - Friday, 27 January 2012

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28. America's dead zones {economy}

http://www.alternet.org/economy/153875/america%E2%80%99s_dead_zones%3A_from_dodge_city_to_durango%2C_why_does_prosperity_pass_so_many_places_by/

Recent headlines of a brighter economic picture have given many people hope that the economy is not in another free fall. GDP growth did tick upward in the last quarter. But for many communities the picture is enduringly dark, because unemployment rates have lagged far behind the national average for years and will likely continue to do so.

While the President is putting forth a plan to help students pay off their student loans, more and more educated students are unable to find employment. Contrary to popular belief, an educated workforce doesn't really make a difference (areas with many college grads are actually doing worse than areas with fewer) and a diversified economy does not always mean a more thriving economy.

A Place Near You?

There are 216 defined metropolitan (metro) and micropolitan (micro) areas—with populations ranging from 10,000 to 4 million—that have had unemployment rates at least two percentage points higher than the national average for either 20, 10, or 5 years (see tables 1, 2, 3 at the end of this article). These are America’s dead zones. Here employment growth is stagnant or non-existent and high levels of joblessness dominate. Some areas were once prosperous while others have recently experienced economic distress. In these communities paid work is hard to find for those who have not given up looking, and widespread involuntary idleness is the norm.

Poor employment prospects are not related to periods of recession or prosperity; these communities have not had substantial and sustainable increases in employment for lengthy stretches. America’s dead zones can not be described as containing “weak labor markets” because many have had long term unemployment problems that are more than weak and not temporary. Even in zones with only 5 years of high unemployment, the prior years were hardly marked by robust job growth.