North Dakota and the District of Columbia were the two best US job markets in 2010, according to new Gallup Job Creation Index data. More than half of the 10 best job markets in 2010 were in energy- and commodity-producing states.
Natural Resources Key to Jobs
Having a significant presence of natural resource-based industries was a distinct job creation advantage for states such as North Dakota, West Virginia, Oklahoma, and Texas. These were among the top 10 job markets in 2010, as they were in 2008 and 2009.
Also among the top 10 in 2010 were Alaska, another energy state, and Washington, D.C., and Maryland, both of which benefit from having a large percentage of federal government workers. Mostly farm commodity states, including Arkansas, South Dakota, Iowa, and Pennsylvania, fill out the top 10.
Northeast, West Have Worst Job Markets
Despite an overall improvement in job market conditions, five states in the bottom 10 for creating jobs during 2008 and 2009 were also on the list in 2010: Nevada, Connecticut, Rhode Island, New Jersey, and California. Gallup analysis indicates these states continue to suffer from the economic and housing crash that was part of the recession. The remainder of the worst 10 markets are also in the Northeast and West: New York, New Hampshire, Vermont, Maine, Idaho, and Oregon.
Manufacturing States Show Improvement
States showing the most improvement in job market conditions between 2009 and 2010 included the long-depressed manufacturing states of Michigan, Ohio, and Pennsylvania, which Gallup says likely reflects the significant improvement in US manufacturing last year.
Also among the most improved were five of the 10 states with the worst job markets in 2009, giving them the most room to improve: Oregon, Delaware, Arizona, Minnesota, along with Michigan. Reflecting the growth of the federal government, the District of Columbia was not only the second-best job market but also the second-most improved job market in 2010.
Many Top ’09 States Show Little Improvement
Eight of the states showing the least improvement last year were in the 10 best job markets in 2009, including New Mexico, Nebraska, West Virginia, Louisiana, Maryland, Oklahoma, Texas, and Virginia. Also among those showing the least improvement are several states in the Northeast, New Jersey, Vermont, and New York; and two smaller states in the West, Montana and Wyoming.
Job Creation Index Averages Mild Improvement
Gallup’s Job Creation Index averaged +7 nationwide during 2010, with 28% of employees reporting their companies were hiring and 21% saying their companies were letting people go. Regionally, job market creation was best in the Midwest and South but lagged behind in the East and West.
Gallup Sees Similar Pattern in 2011
Looking ahead, Gallup analysis suggests it seems likely that the overall pattern of state job market conditions across the nation in 2011 will remain similar to those of the past three years. Energy prices are surging and high oil prices tend to improve hiring activity in energy-producing states. Similarly, high commodity prices should help job conditions in the farm and mining states.
On the other hand, the housing market continues to suffer. This suggests that states with the worst housing conditions will continue to see relatively difficult job market conditions for some time.
Of course, it is possible that state and federal budget cutbacks could hurt job market conditions in some states more than others, particularly those having the worst budget problems, such as California, New York, and Illinois. Or, federal budget cuts could hurt states with a large number of federal government employees. Alternatively, US manufacturing and exports could continue to increase, providing more jobs in industrial states.
US Sees Unemployment as Top Issue
Thirty-five percent of Americans name unemployment as the most important problem facing the US, according to results of another recent Gallup Poll. This is the highest percentage since the economic slowdown began in December 2007 and higher than at any point since October 1983 (41%). Unemployment is the most important problem for the second month in a row, with the economy ranking second and healthcare third.
About the Data: These results are based on aggregated data from nearly 200,000 interviews with employed adults during 2010, conducted as part of Gallup Daily tracking. Gallup asks those who are employed whether their companies are hiring workers and expanding the size of their labor forces, not changing the size of their workforces, or laying off workers and reducing their workforces. The figures reported here represent the net difference between the percentage reporting an expansion and the percentage reporting a reduction in their workforces.
