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Region's Recovery Ranks Among Strongest in U.S.
YOUNGSTOWN, Ohio – The economy of the Youngstown metropolitan area is recovering from the Great Recession with more strength than most in the United States, finds a new report from The Brookings Institution.
The MetroMonitor of the Brookings Metropolitan Policy Program, a quarterly review that measures economic recovery and growth in 100 metropolitan regions, reported Tuesday that as of Dec. 31, the Youngstown-Warren-Boardman metropolitan statistical area, or MSA, ranks among the top 20 that experienced the strongest rebounds since the recession officially ended in 2009.
The report combines data on the number of jobs created during from the third quarter of 2009 through Dec. 31, 2011, the two-year percentage point change in unemployment for the period ending Dec. 31, changes in the gross metropolitan product since the economic trough in the second quarter of 2009, and the change in housing prices from the second quarter of 2011.
As of last Dec. 31, Youngstown ranked 13th in the nation in terms of employment growth -- a rate of 3.6% -- compared to the metro average of 1.5% and the national average of 1.6%.
The Youngstown area was ranked eighth among the 100 when taking into consideration its unemployment rate that stands two points higher -- 8.2% -- than four years ago. The 100 regions posted average unemployment rates 3.6 points higher, while the national average was 3.5 points higher.
And the Youngstown area ranked third when measuring the unemployment rate's drop over two years. According to the report, unemployment fell 3.9 points in the Youngstown region compared with a 1.3-point drop among the metro areas and an average 1.4-point drop nationally.
Gross metropolitan product improved 7.6% from the quarter ended June 30, 2009, and the Youngstown area ranked 26th compared to the average growth rate of 6% among the 100 areas and a national rate of 6.6%.
Moreover, the Youngstown MSA saw housing prices rebound 1.8% since they bottomed out the second quarter of last year, the report says. This places the region 31st in the 100 metro areas, which averaged housing price increases of 1.1%, and the nation, which averaged 1.4%.
Just one other city in Ohio, Toledo, ranked in the top 20. Other metro regions that made the cut were Austin, Texas; Boise, Idaho; Dallas, Houston and Oklahoma City; Worchester, Mass.; Portland, Ore.; Phoenix, San Jose, Calif.; Detroit and Grand Rapids, Mich.; and Nashville, Tenn.
The regions experiencing the strongest recovery clustered around high technology centers or auto-producing areas, the report found.
“Great Lakes metropolitan areas that specialize in the production of autos, auto parts and related durable goods are also recovering strongly from the recession,” the report said.
Still, the report cautioned, “Many remain far below their pre-recession levels of employment and output. Their economies have begun to turn around, in most cases because they have had strong growth in manufacturing activity during the past two years.”
Among the 20 weakest performing areas were Allentown, Pa.; Atlanta, Ga.; Colorado Springs, Colo.; Modesto, Calif.; Los Angeles; Little Rock, Ark.; Poughkeepsie, N.Y.; Philadelphia; Stockton, Calif.; and Virginia Beach, Va.
Copyright 2012 The Business Journal, Youngstown, Ohio.