Why do some states have 6% unemployment while others have 12%?

Is it due more to the type of industry or due to the policies within the state government? Maybe a combination. Iowa has around 6-7% unemployment while Nevada has 12%. FL has 10.8%. Is it because tourism is down?

15 Answers

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  • 10 years ago
    Favorite Answer

    There are many reasons. Basically, it is a matter of which state has the better economic policies. There are other factors. North Dakota has a 3% unemployment rate. In the western part of the state they are developing natural resources. And not too many people live in the state, so the rate is low.

    I live in PA. The unemployment rate is 8%. PA is not a business friendly state. Too many unions. Too many taxes. However, there is drilling for natural gas in Marcellus shale, a geologic formation that is under 70% of the state. So jobs are being created.

    Texas has no income tax, attorneys cannot represent workers compensation claimants, it is now loser pays in civil law suits. The government is business friendly and natural resources are being developed, so unemployment is down. In the past 10 years about three million people have moved to Texas.

  • Slim
    Lv 5
    7 years ago

    The states with higher unemployment are run by liberal democrats that spend money like drunken sailors on leave in the Philippines thus taxes are continually raised to support the uncontrolled spending habit. Sorry to any former sailors out there. In contrast another state may manage there costs and work to lower taxes to promote business development. What business would want to expand and hire in a market condition of high taxes of they could go elsewhere and benefit more. Its like would you worked at McDonald's for $8 an hour because it was close and they wanted asked you to work there forever. But you keep getting an offer from Costco for $16/hour because they like your work ethic and experience. Hummm where would a sane person go.

  • 10 years ago

    news from The Front:

    Southern Ohio; 9.2%

    Northern Kentucky 9.8% (just across the Ohio river, where the Cincinnati International Airport is located...)

    But these numbers can't be trusted because it is apples vs oranges vs parsnips. The official unemployment #s do not factor-in so many variables and staples. Such as, for example, how many people on welfare, how many retired people on Social Security (not to mention the Medicare/medicaid #s), how many are on food stamps while working at the factory, how many are on Section 8 Housing grants, and how many are living in the underground economy.

    So the official #s mean nothing.

    Another example: 3 years ago I escaped from Los Angeles (but I am not the famous actor Kurt "snake" Russel ;-) Can one trust the #s there? NO! illegal immigration has made statistics meaningless, because so many are living under the table, below the radar. And sucking off Social Services.

    BOTTOM LINE:

    unemployment #s come from government. We in modern America can trust government #s no more than the Proletariat could trust Pravda in Soviet Union.

    It's all lies.

  • 10 years ago

    Most of those difference are those states have higher state taxes which causes Businesses to leave as well as residents and the people left have to make up the difference. Excellent example: NEW YORK. If you take a deeper look most states with higher unemployment have 1 thing in common. They are blue. I didn't say ALL I said most.

    Source(s): Small Business Owner
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  • 10 years ago

    there are several factors really. what i can think of now is population. if there is a large population and lower job availability then not all of the people gets employed. so their is a large percentage of unemployment. secondly is education. if the majority of people in a certain state is educated then they will get easily get employed but in states where education standard is not much high then the unemployment rate in that state is high. another one is the fall in the stock markets. the states which are more affected by the stock markets crash, then the companies, industries in that state will suffer a loss and eventually get rid of employees to save money thereby making the unemployment rate high.

  • seay
    Lv 4
    4 years ago

    It keeps to be a secret why Liberals will tear Romney to products over a completely non-situation, yet blindly settle for something from the government at face cost. those "figures" which you so proudly boast as some indicator of the undesirable financial gadget, at the instant are not something better than a "sham". NO diverse than the substitute Polls showing Obama with great leads between voters. this is why. those "information" are themselves POLLs carried out by utilising telephone or door to door canvassing. meaning people are rapidly in touch, meaning the outcomes ARE concern to "honesty and integrity".....you bear in ideas, that little standard cost people USED to prepare ? not something could supply up a guy or woman taking a ballot by utilising telephone, to write down definite rather of NO. not something. Obama necessary those to be "changed" desperately to offset his non-POTUS overall performance. answer: The BLS is BS for short, as are ninety 9% of all Federal companies or workplaces.

  • 10 years ago

    It's only 5.7% in my state (Vermont), but, that is still worse than what it was here when Bush was in office.

    I think that it has to do with policies on a national and state level, and with the type of industry.

  • ?
    Lv 7
    10 years ago

    Where humans are involved you never see any perfect correlations.

    You CAN plot a very strong correlation as follows:

    On one axis, plot the States' unemployment rates.

    On the other axis, plot their degrees of Democrat hegemony.

    Now that you're LOOKING AT IT, the problem should be obvious.

  • Anonymous
    10 years ago

    Not only does Iowa have a lower population, it also has an aged population on SS who do not rely on employment. Wages are much lower than average and it is agriculture based heavily subsidized by the federal government.

  • 10 years ago

    Check out Union membership

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