State by State Variance in Unemployment is High

As economic conditions continue to deteriorate, it’s interesting to look at the state-by-state numbers from the Bureau of Labor Statistics because they show an incredible amount of variation. For example, the national unemployment rate would probably be lower had Ben Nelson (D-NE) not joined with some Republicans to render the stimulus stingier and less effective. But that said, Nelson’s constituents in Nebraska are actually enjoying pretty robust labor market conditions and a 4.4 percent unemployment rate.

Similarly, if you’re Finance Committee Chairman Max Baucus of Montana, your constituents have a 5.8 percent unemployment rate. And Budget Committee Chairman Kent Conrad hails from the great state of North Dakota, where the unemployment rate is only 4 percent. But of course only a trivial proportion of the American population actually hails from those states. All three combined contain fewer people than Michigan where the unemployment rate is a terrifying 13.9 percent. California is looking at 11.2 percent and sure to go up as the budget crisis unfolds. In Florida it’s 10 percent.

It’s also interesting to note that, on a metropolitan level, while Greater New York City’s 8.2 percent unemployment is bad, it’s actually better than average. And that’s in the town that’s obviously been ground zero for the financial system collapse. And of course in metropolitan DC, we’re at a comfortable 6.2 percent unemployment rate, leaving the key political and media elites somewhat psychologically insulated from the catastrophe sweeping the country.