Retailers Target Urban Northeast, Mid-Atlantic - Update
A look at new store openings and announcements in July 2010 shows retailers targeting states in the Northeast and Mid-Atlantic regions of the U.S., where unemployment rates are equal to or better than the national average of 9.5%, for the second straight month. Unlike June 2010, in July retailers specifically targeted urban areas of these states.
For example, discount retailer Target opened its first-ever Manhattan store in East Harlem on Sunday, July 25. The store features more space devoted to fresh food, everyday essentials and home basics geared for apartment living. The assortment is geared toward local ethnic preferences. New York’s unemployment rate in July was 8.2%.
And ice cream retailer Herrell’s, which was initially founded in Boston, MA and is headquartered in Northampton, MA, is staging a Boston-area comeback, with plans to open as early as spring 2011, according to the Boston Globe. Massachusetts recorded an unemployment rate in July not statistically different from 9.5%.
Furthermore, Bottom Dollar Food, a discount grocer based in Salisbury, N.C., announced plans last month to open at least 17 stores in Philadelphia and the surrounding Pennsylvania and New Jersey suburbs, starting this fall. As reported by the Philadelphia Inquirer, n additional four are planned in Allentown and Reading. The expansion will create 600 jobs locally, the company said. Pennsylvania and New Jersey both had July unemployment rates near or at 9.5%.
State Unemployment Rates Change Little
State unemployment rates were generally unchanged in July 2010, which marked a return to flat performance after two straight months of general improvement. According to the Bureau of Labor Statistics, 18 states and the District of Columbia reported over-the-month decreases, 14 states registered increases, and 18 states had no significant rate change.
The official U.S. unemployment rate stayed flat at 9.5% during the month.
The U.S. economy shed 131,000 non-farm payroll jobs in July as federal government employment fell with 143,000 temporary workers hired for the decennial census completing their work. Private-sector payroll employment edged up by 71,000, however.
Similarly, the U.S. economy shed 125,000 non-farm payroll jobs in June 2010, reflecting the loss of 225,000 temporary Census jobs. Total private employment edged up during the month by 83,000 jobs due to modest increases in several industries.
Prior to June, the U.S. economy added 431,000 non-farm payroll jobs in May 2010. This marked a significant improvement from 290,000 non-farm payroll jobs added in April 2010, as well as 162,000 non-farm payroll jobs added in March 2010. In addition, 36,000 non-farm payroll jobs were lost in February 2010 and 20,000 lost in January 2010.
However, tempering this May increase in new jobs was the fact that 411,000 of them were temporary workers hired to assist the 2010 Census. Private-sector employment changed little (41,000 jobs added).
Nevada Has Highest Unemployment Again
For the third straight month, Nevada reported the highest unemployment rate among the states, 14.3%, in July 2010. The rate in Nevada also set a new series high. The states with the next-highest rates were Michigan, 13.1%; California, 12.3%. May 2010 marked the the first time since April 2006 a state other than Michigan reported the highest monthly unemployment rate.
On the positive side of the state unemployment picture for June 2010, North Dakota continued to register the lowest jobless rate (3.6%), followed by South Dakota (4.4%) and Nebraska (4.7%).
In total, 25 states posted jobless rates significantly lower than the national figure of 9.5%, seven states had measurably higher rates, and 18 states and the District of Columbia had rates that were not appreciably different from that of the nation.
Nevada recorded the largest jobless rate increase from July 2009 (two percentage points). Three additional states had smaller, but also statistically significant, increases: Montana and Pennsylvania (one percentage point each) and Florida (0.7 point).
Eight states reported significant over-the-year rate decreases in July, the largest of which was in Minnesota (1.5 percentage points). The remaining 38 states and the District of Columbia registered unemployment rates that were not appreciably different from those of a year earlier.
Michigan Gains Most Monthly Jobs
Between June and July 2010, 13 states and the District of Columbia recorded statistically significant changes in employment. The over-the-month statistically significant job gains occurred in Michigan (+27,800), District of Columbia (+17,800), and Massachusetts (+13,200). The largest over-the-month statistically significant job losses occurred in North Carolina (-29,800), New Jersey (-21,200), and Illinois (-20,200).
During the year, five states experienced statistically significant declines in employment, while five states reported statistically significant employment increases. The largest statistically significant job losses occurred in California (-186,100), Georgia (-56,600), Colorado (-31,200), and New Mexico (-17,800).
Texas Gains Most Annual Jobs Again
Meanwhile, the largest statistically significant over-the-year employment increases were posted in Texas, which led for the second straight month (+134,600), Indiana (+47,600), Massachusetts (+36,600), and District of Columbia (+21,300). The four statistically significant job losses occurred in California (-103,900), New York (-51,400), Georgia (-39,100), and New Jersey (-34,000).