Jobs up in 33 states over last year

Although we have not yet seen sustained employment growth at the national level, labor markets in more and more states are showing improvement over the same period last year. This spreading state-by-state job creation is one overlooked indicator that casts somewhat of a brighter glow over the current economy. As of July, 33 states reported higher nonfarm employment than in the dismal days of 2009. But year-over-year U.S. employment fell yet again in July. With over half the states adding jobs now, why isn't the national employment picture more positive?

Although we have not yet seen sustained employment growth at the national level, labor markets in more and more states are showing improvement over the same period last year. This spreading state-by-state job creation is one overlooked indicator that casts somewhat of a brighter glow over the current economy.

As of July, 33 states reported higher nonfarm employment than in the dismal days of 2009. As recently as March of this year, only two states (North Dakota and Alaska) were adding nonfarm jobs year-over-year. With over half the states adding jobs now, why isn't the national employment picture more positive?

Year-over-year U.S. employment fell yet again in July, although the decrease of 0.01 percent barely registered on economists' job growth meters. The problem is that the remaining 27 states are still losing jobs, and the combined declines completely offset the gains made by the 33 states showing improvement.

Alaska ranked in first place

The greatest percentage increase for the past 12 months was posted by Alaska (2.2 percent), barely edging out North Dakota. As with all 50 states, Alaska lost jobs for the year as a whole in 2009. But since January, the state has recorded positive growth over-the-year in each month of 2010. Natural resource and manufacturing jobs have set the pace for gains in the state.

Texas created the most jobs (132,500) from July of 2009 to July of this year. The Lone Star State leads the nation in the rate of growth in health care employment (4.5 percent), with more than 50,000 new health care jobs in July compared to last year. Nonfarm payroll employment was up in Austin by 18,600 jobs, more than any other metropolitan area in the nation in July. Indiana nonfarm employment was up by 46,000 jobs, including 16,000 in manufacturing.

27 states lost jobs

Overall, the states in the table created 525,000 jobs in the period from July 2009 to July 2010. But the remaining 27 states continued to lose jobs, canceling the gains for the nation as a whole. U.S. employment in July was down by 17,000 jobs over-the-year. Nevada's rate of job loss was 2.2 percent, placing the Silver State in 50th position among all states ranked by percentage change.

Nevada was in 50th place last year at this time, but then was losing jobs at a double digit pace (-10.4 percent). Colorado, with employment down 1.1 percent, was in 49th position. Arizona was in 49th place last year at this time, but has now moved up to 36th, losing 6,800 jobs compared to last July employment levels. California lost the most jobs over-the-year in July (115,200).