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February 1993, Vol. 116, No. 2

Atlantic and Pacific coasts' labor markets hit hard in early 1990's

Mary C. Dzialo, Susan E. Shank, and David C. Smith


T he recession of the early 1990's hit hardest on the east and west coasts, starting in the Northeast, especially in New England, and then moving down the Atlantic coast. During 1991 and continuing into 1992, the Pacific coast also felt the effects of the recession. The Midwest and the South Central part of the country were much less affected. By contrast, the regions that were ravaged by the deep recession of 1981-82 were the heavily industrialized "rust belt" States of the Midwest and East South Central States.

This article examines labor market changes in major geographic regions of the country from 1990 through 1992 and compares these developments with those of the 1981-82 recession. It relies primarily on calendar-year averages of employment and unemployment for the 1989-92 period, with occasional references to to earlier years. The article utilizes newly available seasonally adjusted data on employment status by census region and division,1 as well as data on nonfarm wage and salary employment by industry.2 Seasonally adjusted quarterly data are used when an annual average obscures important changes during a year and when analyzing events during 1992. Conditions in New England are examined in the greatest detail, because the New England States led the Nation into recession and suffered the most severe declines in their labor market conditions.


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Footnotes
1 The States (and the District of Columbia) that make up the four census regions and nine divisions are as follows:

Northeast   Midwest
     New England      East North Central
          Connecticut           Illinois
          Maine           Indiana
          Massachusetts           Michigan
          New Hampshire           Ohio
          Rhode Island           Wisconsin
          Vermont  
       West North Central
     Middle Atlantic           Iowa
          New Jersey           Kansas
          New York           Minnesota
          Pennsylvania           Missouri
            Nebraska
South           North Dakota
     South Atlantic           South Dakota
          Delaware  
          District of Columbia  
          Florida  
          Georgia West
          Maryland      Mountain
          North Carolina           Arizona
          South Carolina           Colorado
          Virginia           Idaho
          West Virginia           Montana
            Nevada
     East South Central           New Mexico
          Alabama           Utah
          Kentucky           Wyoming
          Mississippi  
          Tennessee  
       Pacific
     West South Central           Alaska
          Arkansas           California
          Louisiana           Hawaii
          Oklahoma           Oregon
          Texas           Washington

2 The two primary sources of data are the Current Population Survey (CPS) of about 60,000 households and the Current Employment Statistics (CES) survey of about 350,000 nonfarm establishments. State data from the CES are not currently available on a seasonally adjusted basis; therefore, the first two sections of this article utilize CES annual averages, while the third section uses January-November averages for 1991 and 1992.


Related BLS programs
Local Area Unemployment Statistics
 
Related Monthly Labor Review articles
A decade of economic change and population shifts in U.S. regions. November 1996.

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