As Unemployment Rises Nationally, The Rocky Mountain West Is Faring Better Than Most
After reaching a low of 4.1% in October, 2006, the U.S. unemployment rate has been trending upward. Analysts now say that the current nation-wide recession or slowing economy began a full year ago in December, 2007. And this recession is expected to continue through all of next year. Prior to its beginning, unemployment in the U.S. had fallen to as low as 4.1% in October, 2006. More recently in November, U.S. unemployment reached 6.5% (unadjusted for seasonality) and could reach 8 to 9% or even higher in the coming year. Unemployment has already reached 8% and higher in some areas of the U.S. However, as the map below shows, much of the Interior West, including the 5-state Rocky Mountain West, continues to have some of the lowest unemployment rates nationally.
Counties in the map are color-coded based upon their average unemployment rate over the period from November, 2007 – one month prior to the start of the nation-wide recession – through October, 2008. Counties in light and medium yellow colors and light orange had the lowest unemployment rates, average unemployment rates under 4%. Those in black, dark purple, and brown had the highest unemployment rates, average unemployment rates of over 6%. And counties in red and dark orange had unemployment rates in between these of 4 to 6%. The areas fairing the best as unemployment rates have risen largely lie in the Interior West extending from the Plains states of Texas north to North Dakota and west through the Rocky Mountains.


The chart below shows states rank ordered from lowest to highest unemployment in November, 2008, with Rocky Mountain West states shown in light purple bars, states in the Northern Plains shown in light yellow, states in the Southwest shown in gold, and states in the Pacific Northwest shown in bright green. California and Nevada are shown in bright blue and Alaska and Hawaii are shown in light blue.
The unemployment rate nationally in November was 6.5%, shown in dark blue. The three Northern Plains state – North and South Dakota and Nebraska – all were among the four states with the lowest unemployment rates, led by North Dakota with 2.8% unemployment. The Rocky Mountain states of Wyoming and Utah had the 2nd and 5th lowest unemployment rates. Montana ranked 13th lowest. Idaho had the 22nd lowest rate and Colorado had the 24th lowest. Michigan had the highest unemployment at over 9%. In the West, California, Oregon, and Nevada all had relatively high unemployment levels, all around 8%.

Rocky Mountain West region had one of the fastest growing economies over the course of the last ten to fifteen years and unemployment levels in many areas of the region had been squeezed to lows of 2 to 2.5% prior to the recession. So, as the economy has slowed, unemployment levels have risen throughout the U.S., but remain moderately low, at least by historic standards, here in the region. There are about 380 metro areas in the U.S. and the chart below shows the 50 metro areas across the country having the very lowest unemployment rates in October, 2008. Metro areas in the Rockies are shown in light purple colors. Those in the Northern Plains are shown in light yellow. Of the 23 metros with unemployment rates under3.5%, seven are in the Northern Plains and seven are in the Rockies including Logan, Utah, at 2.4%, Casper, Wyoming, at 2.6%; Provo, Utah, at 3.0%; Idaho Falls, Idaho, at 3.1%; Billings, Montana, at 3.2%; Salt Lake City at 3.2%; and Cheyenne, Wyoming, at 3.4%. Four other metro areas in the Rockies are in the top 50 including Ogden, Utah, at 3.6%; Great Falls, Montana, at 3.9%; Grand Junction, Colorado, at 4.0%; and Missoula, Montana, at 4.1%. Interestingly enough, Montana has only three metro areas and all three are among the 50 metros with the lowest unemployment rates.
The nation-wide recession and stock market meltdown are producing rising unemployment levels across the country. This trend will continue for at least a few more months. Some areas will be more hard-hit by these declines than others. And up to this point, communities in the Rocky Mountain West are fairing better than most others outside of the region – something to be thankful for during this holiday season.

- Larry Swanson, Director, O’Connor Center for the Rocky Mountain West