Making their way to lunch at the Faith Mission in Elkhart, Indiana: four men in the city once dubbed the "RV Capital of the World," where one of every four jobs is tied to the service or manufacture of recreational vehicles and component parts and where unemployment has reached 15.3 percent, up 10.6 points last year. (Photo by Warren Skalski / MCT)
by Rebecca Cole
At 7.6 percent, unemployment has risen higher than many economists expected.
Yet some parts of the country are faring much worse.
Elkhart, Ind., posted the largest jobless rate increase last year, up more than 10 percentage points. Elkhart is the nation's hub for recreational vehicle manufacturing -- 75 percent of all RV's are produced in Elkhart, where one in four jobs at one point were tied to the industry. The area now faces an unemployment rate of 15.3 percent, more than twice the national rate.
President Barack Obama plans to stop there on Monday to deliver his message about the need for an economic stimulus, before appearing at his first prime-time news conference in Washington on Monday night. He plans to travel the next day to Fort Myers, Fla., where the economy has taken a tough toll on the housing market. The jobless rate on the Gulfcoast community rose from 6 to 10 percent between December 2007 and 2008.
"The president looks forward to getting out of town for a few hours and talking directly with people that are affected,'' Press Secretary Robert Gibbs said today.
The Labor Department today announced that the unemployment rate nationally rose from 7.2 to 7.6 percent in January, with 3.6 million jobs lost since the start of the recession in December 2007. Half the losses occurred in the past three months, and in January alone 598,000 jobs were lost - the biggest one-month loss since 1974.
The losses were pervasive: Unemployment rates rose in 98 percent of the nation's metropolitan areas last year, according to a Bureau of Labor Statistics report released earlier this week. Among the largest 369 metro areas, 363 saw unemployment rates increase, some with skyrocketing, double-digit growth.
Elkhart posted the largest rate increase, a 10.6-point increase in unemployment.
"Elkhart County has always been the industrial base for the state of Indiana," said Dennis Harney, executive director of the Recreation Vehicle Indiana Council and the Indiana Manufactured Housing Association. "In good times over 100,000 people would commute into the area for jobs. With a city of 150,000, having an unemployment rate of 15 percent will affect every business in town."
The community received more bad news this week when two RV manufacturers announced an additional 600 workers would soon be out of a job.
Kevin Broom, spokesman for the Recreational Vehicle Industry Association, said the industry itself has lost about 280,000 jobs between June 2007 and November 2008, a little more than half of the industry's workforce of manufacturers and suppliers.
"The single biggest issue affecting the industry is the ability for consumers to get loans," Broom said. "People are unsure about the economic future and so are holding off on making a purchase.''
Similarly, the area around Danville, Va., is primarily dependent upon just two major industries, textiles and tobacco, both of which have fallen off dramatically in the past few years. Area unemployment jumped by 5.6 points, the nation's third-largest increase.
Even with billions of dollars in funding for economic revitalization flowing to the state over the past decade from the 1998 landmark tobacco lawsuit settlement, the area's unemployment now stands at 11.5 percent.
Both, however, pale in comparison to the area with the country's highest unemployment rate: El Centro, Calif., with a 22.6 percent unemployment rate, primarily due to the area's many seasonally-employed agricultural workers.
A few bright spots stand out: Morgantown, W. Va., and Logan, Utah, are at 2.7 percent and 2.8 percent. Among the largest metropolitan areas, those with populations of 1 million or more in the 2000 Census, Oklahoma City, Okla., and the Washington, D.C., area had 4.6 percent and 4.7 unemployment rates, respectively.
Comments
"The area suffered the worst increase in jobless last year: Up 10.6 points."
Meanwhile we have obstrutionist Repugs playing partisan political games while begging for more tax cuts for the richest 1-2%, big corporations and big oil etc.
This is the exact reason why the Repuglicans have seen their ranks shrink down to the point where they are nothing more than a regional (the south) party.
Posted by: Hey Joe | February 6, 2009 3:38 PM
The official economic forecaster for the Dem Congress, the Congressional Budget Office, just reported that the bill will HURT the economy in the long run. See http://www.washingtontimes.com/news/2009/feb/04/cbo-obama-stimulus-harmful-over-long-haul/ for the news story David Axelrod and the Swamp don't want anyone to know about.
Posted by: "Dissent is Patriotic" | February 6, 2009 4:20 PM
The official economic forecaster for the Dem Congress, the Congressional Budget Office, just reported that the bill will HURT the economy in the long run. See
Posted by: "Dissent is Patriotic" | February 6, 2009 4:20 PM
Nice try RNC Bruce....and no, you Repug nuts are not going to get anymore tax cuts for the rich put in the bill.
Posted by: Allardice | February 6, 2009 5:09 PM
for the news story David Axelrod and the Swamp don't want anyone to know about.
Posted by: "Dissent is Patriotic" | February 6, 2009 4:20 PM
The Washington Times?!?!
HAHAHA!!!!!!!!!!!!
Posted by: clammyc | February 6, 2009 5:18 PM
Ok, Elkhart, IN is dependent on the RV business. The RV business caved in when gas prices went through the roof. Obama is for higher gas prices to save us from GLOBAL WARMING! Illinois is about to raise gas taxes (already among the nation's highest for the worst roads in the country) 12 cents a gallon. Yet, Obama is going to go Elkhart as an example of a bad economy. Hey, Obama, your policies are why Elkhart is in such dire straits!
Posted by: John D | February 6, 2009 7:10 PM
"The official economic forecaster for the Dem Congress, the Congressional Budget Office, just reported "
Posted by: "Dissent is Patriotic"
Right. Just reported 2 days ago. It also reports economic growth in the short term, which we need.
Posted by: Whining is Patriotic | February 6, 2009 7:25 PM
Hey, Obama, your policies are why Elkhart is in such dire straits!
Posted by: John D | February 6, 2009 7:10 PM
Obama has only been the President for two weeks, you dimwit.
The current Bush recession/depression was caused by eight years of Republican tax cuts for the rich, trickledown Reaganomics crap.
Posted by: Duh | February 6, 2009 11:17 PM
"The RV business caved in when gas prices went through the roof."
NOT TRUE. And it's not low consumer confidence either.
While the RV business economy slowed during the higher gas prices of late 2007 and early 2008, the real problem facing manufacturers and dealers is credit. Banks and lending institutions have stopped loaning money to both the dealers (so they can buy from the manufacturers) and to consumers (who get their loan denied at the dealership). Without these loans, the RV industry can't make a sale.
Also, Elkhart, Indiana's jobless rate is higher than is reported due to the large Amish workforce that doesn't collect unemployment. Not to mention the illegal aliens...
Posted by: Chris | February 7, 2009 1:44 AM
John D,
I really hope you are just being facetious when you post here because your argument could not come close to standing up, even with crutches. First off, the RV market crashed because it is a luxury item being sold in a horrible bush depression. If people had the money to spend, they would not care what the gas prices are….that has been historically proven in this country. How again has Obama managed to affect the gas prices in his first few weeks as POTUS? He hasn’t. In fact, gas prices have dropped almost in half this last year….incase you haven’t been out of the basement this last year. Higher gas prices are really a good thing, but it would take a larger mind than yours to figure it out.
With posts like this one Johneeeee DDDD, you, Inkblot, and Bubba make wonderful mascots for the pug party. Keep on posting!
Posted by: Xcellentform | February 7, 2009 8:24 AM
Why am I not surprised the Leftist Loons are clueless? While the credit market hasn't helped the RV and recreation market, high gas prices in fact did cause the RV and recreation industry to suffer. Remember, folks, people didn't travel much this past summer with $4-plus gasoline and diesel. In fact, U.S drivers drove 100 BILLION miles LESS in 2008. And, yes, Obama has only been president a couple of weeks, but the policies HE supports and the Democratic party endorses are partly to blame for the energy prices and crash of the RV and recreation industry. FACT!
Posted by: John D | February 7, 2009 11:12 AM
John, you are in danger of becoming a flaming idiot on this blog. Gas prices are now CHEAP, RV sales are now nonexistent.....there is very little correlation between the facts and your arguement. It is a supply and demand thing, and right now, no one has the money for luxury items. Keep posting and trying to explain your reasoning. It makes for a great chuckle for everyone that is reading. I love how you are trying to blame Obama for this one.
Posted by: Xcellentform | February 7, 2009 12:22 PM
John, your gas theory is a joke. If you want to get into things that are “partially” responsible for the gas spike, than I can say that YOU are “partially” responsible for the gas spike. Unlike your crafty pug posts, I will tell you the FACT of what was “primarily” responsible for gas hike: Monopolistic oil companies; Price rigging by OPEC; and Wall Street traders in commodity futures. It certainly was not any “theories” that the dems have that have not even been put into practice!!!! Go drink another cup of coffee and start posting in the afternoon!
Posted by: Xcellentform | February 7, 2009 12:57 PM
It doesn't help the RV industry that FEMA has had its name dragged through the mud thanks to all the formaldehyde problems in Louisiana and Mississippi. When people learned that staying in trailers/RVs can exacerbate asthma or possibly even cause cancer, no doubt it hurt the sales, and thus hurt the insufficiently diversified economy of Elkhart.
Posted by: Persiflage | February 7, 2009 2:48 PM
Job loss...Been there. Done that. Still 'there'.
Losing a job is one of those defining moments in life. We can choose to lose our way (our minds), or we can rise to the challenge and follow what our Spirit tells us to do.
Remember: This is a new chapter in your life.
Just as I was "told" the day I got "set free" (laid off) from my job...WRITE ONE HELL OF A CHAPTER!
FREE book download: http://www.noexpertsneeded.com
(No strings/spam...Simply my way of 'giving back')
take care,
Louise Lewis, author
No Experts Needed: The Meaning of Life According to You!
Posted by: Louise Lewis, author | February 7, 2009 2:59 PM
The comments here show why it is so easy for the press to manipulate the masses for the political party of choice.
Tax cuts = rich people. That's an easy one from the playbook. Most people easily believe that one.
Going into to debt will get us out of trouble. That is another easy one. Most people are too ignorant to know they are spending their own future taxes. So ok, keep on spending. Government is the answer.
RVs are gas guzzlers that are harming the environment, right?
See, the MSM has you all fooled.
Posted by: Jack | February 9, 2009 1:52 PM
I feel sorry for all of those poor folks who voted for obama and who believe in the green movement baloney. They are going to see the biggest jobless half baked recovery in history. The government is broke and the fake jobs it is creating is busted. They will be singing the blues over their blue state green movement acitivity,
Posted by: elizabeth white | August 5, 2009 12:25 PM