California has 8 out of 10 cities with highest unemployment rates in nation
by Bob MorrisTue, Apr 19th 2011
Well, this is certainly a grim honor and not a top ten list that any metro area would ever want to be on. California leads the nation in unemployment rates, with a startling 8 out of 10 cities with the highest unemployment.
1. El Centro CA, 26.9
2. Yuma AZ, 21.5
3. Merced CA, 21.3
4. Yuba City CA, 21.3
5. Fresno CA, 18.2
6. Modesto CA, 18.1
7. Visalia-Porterville CA, 18.1
8. Hanford-Corcoran CA, 18.0
9. Stockton CA, 17.6
10. Ocean City NJ, 17.0
El Centro is near the Mexico border at Mexicali and is the county seat of Imperial County. Modesto, Merced, Visalia, Hanford, and Fresno are in the San Joaquin Valley along CA-99. Stockton is further north on I-5 and is the county seat of San Joaquin County. Yuba City is north of Sacramento between I-5 and I-80 and in the county seat of Yuba County.
These areas have quite a lot in common. They are primarily agricultural with lots of seasonal and temporary workers. This accounts for some of the unemployment rate but certainly not all of it. There are many other states with major agricultural areas, yet they don't have the unemployment that agricultural areas in California have. Why is this?
It may be due in large part to the real estate crash. These areas, for those most part, had huge run-ups in property prices. When the bubble burst, prices collapsed spectacularly. Stockton in particular got clobbered. Real estate prices there severely cratered, and it has the unenviable reputation of being on multiple worst places to live lists, as well as having about the highest foreclosure rate in the nation.
http://caivn.org/article/2011/04/19/california-has-8-out-10-cities-highest-unemployment-rates-nation