Unemployment rate drops in most metro areas

By Christopher S. Rugaber, AP Economics Writer

WASHINGTON — The unemployment rate fell or stayed the same in December in two-thirds of the nation's largest metro areas from a month earlier.

The Labor Department says the unemployment rate dropped in 207 of the 372 largest metro areas, the most to report a decline since September. The unemployment rate rose in 122 areas and was the same in 43.

CHART: December unemployment in 372 metro areas
JOBS OUTLOOK: Latest data for all states, 384 metros
Nationwide, the unemployment rate dropped sharply in December to 9.4% from 9.8%. About half that decline was because more unemployed workers gave up on their job searches. The government doesn't count people as unemployed when they stop looking for work. The metro data lags the national data by several weeks.

Even with high unemployment nationwide, five metropolitan areas reported large job gains last year, including: Washington, D.C.; Dallas-Fort Worth; Boston; Phoenix, Ariz.; and Minneapolis-St. Paul.

Unlike the national report, the metro figures aren't seasonally adjusted to account for trends such as the hiring of agricultural workers for fall harvests, or the layoff of temporary retail employees after the winter holidays. That makes the data more volatile from month to month.

Fourteen areas recorded unemployment rates of at least 15%, 12 of them in California. Unemployment topped 10% in 109 areas, down from 114 the previous month. That's also below the 140 areas with 10% unemployment or higher a year earlier.

For all of 2010, unemployment dropped in 238 metro areas, while it rose in 115 and remained the same in 49.

El Centro, Calif. had the highest unemployment rate in December, at 28.3%. It was followed by Yuma, Ariz., with 23.2%. The two areas are adjacent with a high concentration of migrant farm workers.

Lincoln, Neb. had the lowest unemployment rate at 3.5%. It was followed by Bismarck, N.D. and Fargo, N.D. at 3.9% and 4%, respectively.

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