Business and Community Partners: tcrBLOG: Chicago's South Side has the nation's second-highest unemployment rate

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November 18, 2009

Chicago's South Side has the nation's second-highest unemployment rate

Chicago isn't often mentioned in discussions about the areas suffering most from high unemployment, but perhaps it should. An analysis of the U.S. Census Bureau's 2008 American Community Survey shows that the collective unemployment rate for four Chicago community areas ranked second in the nation among similarly sized geographic areas.

According to a Chicago Reporter analysis of employment data collected in the 2008 American Community Survey, the collective unemployment rate for South Side neighborhoods Auburn Gresham, Englewood, Washington Heights and West Englewood was 23.2 percent. Those four community areas are grouped together in what the Census Bureau defines as a public use microdata area--or PUMA. With a rate of 28.5 percent, only the PUMA covering the northeast corner of Detroit had a higher level of unemployment in 2008, according to the Reporter's analysis.

In all, Detroit was home to four of the nation's top 10 PUMAs for unemployment.

Chicago was the only other city with more than one area in the top 10. The West Side's Austin community area, which is large enough to be its own PUMA, had the nation's seventh-highest unemployment rate with a mark of 20.9 percent.

The top 10 PUMAs also included Cleveland's northeastern side, the northern third of St. Louis, the east and southeast sides of Toledo and the neighborhoods covering west central Atlanta.

The American Community Survey may be one of just a few sources providing a look at unemployment on a neighborhood level. The federal government's monthly release of unemployment data typically includes information for states, metropolitan areas and larger cities.

It is likely that unemployment is even higher now on Chicago's South and West sides, since the unemployment rate for the Chicago-Naperville-Joliet metro area increased from 6.2 percent to 10 percent between September 2008 and September 2009. However, the city's South and West sides have long suffered from high unemployment. As far back as 1990, those areas were experiencing unemployment rates higher than 18 percent.

--Alden Loury

Posted at 04:59 PM in Employment/Labor | Permalink ShareThis

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They don't want to work anyway.

Posted by: Union Guy | November 18, 2009 at 09:24 PM

Some of that high rate is based on the economy, most, however, is based upon the moral depravity of the residents.

Posted by: chicago resident | November 19, 2009 at 12:54 PM

The hope for this nation is that we can all change. Iowa and Minnesota with mostly white people put President Obama in the lead and the country elected him. That was huge. That event gave hope to people around the world.
We still have a long way to go.

Posted by: Liveatnight | November 20, 2009 at 09:35 AM

I shudder to think what the current unemployment rate in North Lawndale is. Back in 2005, before the bottom fell out of the economy, our unemployment rate, excluding discouraged workers was 23%, while the nation was experiencing a 4% rate of unemployment.

Posted by: Valerie F. Leonard | November 20, 2009 at 11:26 AM

I can only fear where the unemployment will hit besides West and South side. It will be very soon when most people will be unemployed in 'comfortable areas' and other cities and states will think of Chicago as "they didn't want to work anyway"

We should also have that same attitude when we think about people who lost money in the stock market as "they were too stupid to put it there" or maybe we should look at where the U.S economy is going and have a better attitude like "maybe this country isn't a wealthy as it pretends to be".

Posted by: Carol | November 23, 2009 at 07:17 PM

Someone somewhere needs to step up and start telling and printing the real numbers of unemployment instead of trying to whitewash the whole thing.

Some laid off professional needs to step up and get this info on the net so the Administration can finally see how the economy isn't.

The truth will set us all free . . .

Posted by: ApresSki | November 23, 2009 at 08:41 PM

@ union guy.....please clarify who THEY is?

Posted by: per usual | November 25, 2009 at 07:12 PM

Wow! Great reporting! We need a legislative briefing on Poverty in Chicago to get government to develop a public policy solution to this matter. Millions are spent daily in Chicago without any real assessment on the poverty rate impact. It's my hope we can begin to build the campaign for a February to March 2010 Poverty Reduction Ordiance or Task Force in the City of Chicago. DCP recently draft an ordinance on Poverty reduction and we believe some movement has begun. Your research on poverty adds value to the call for action!

John Paul Jones
Developing Communities Project (DCP)

Posted by: John Paul Jones | December 14, 2009 at 02:53 PM

How does the unemployment rate affect mortgage rates?
from regression analysis I found that there is a strong positive relationship between the unemployment rate and mortgage rates. I can't figure out why. Any thoughts?

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I was not aware about this rate I could not believe that Chicago's South Side has the nation's second-highest unemployment rate.

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Posted by: Donnie | September 08, 2010 at 04:43 AM

Most unemployed people will find it harder to join the work force once out of a job for long periods of time.

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Posted by: Chelsea | September 15, 2010 at 02:37 PM

Is this still the same today or did the Obama money help out his hometown. No area should have that much unemployment.

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