States with highest unemployment rates share root causes

Unlike the last recession, today's unemployment hot spots are all over the map.

The five states with the highest unemployment rates -- Michigan, Rhode Island, South Carolina, California and Oregon -- all have something in common, though: a heightened exposure to the root causes of this downward spiral.

The collapse of housing. The implosion of the auto industry. The meltdown of financial services. The exodus of manufacturing.

All states are feeling the pain, but the worst are getting hammered on multiple fronts:

-- The rotten housing market has punished California lenders and builders, taken an ax to Oregon's timber industry and soured the prospects for construction workers in Rhode Island, where buyers from neighboring states helped drive up home prices.

-- The steady decline of the manufacturing sector has punished Rhode Island and South Carolina, where laid-off factory workers lack the training and job opportunities in an increasingly high-tech economy.

-- The auto industry's pain is Michigan's above all. But it is also being felt in states like South Carolina, where German automaker BMW has cut 500 temporary workers, and in California, where many of dealerships have shut down.

"What makes this a different recession," said Rebecca Blank, an economist at the Brookings Institution, "is that it is so widespread."

During the 2001 recession, which was largely tied to the dot-com collapse, the West had a disproportionate amount of the jobless burden: Oregon, Washington, Alaska and California had the highest unemployment rates. (Mississippi and Washington, D.C. were tied with California.)

There is one region of the country that has largely avoided the country's real estate and manufacturing woes, and as a result has been spared the worst of the recession's pain.

A contiguous cluster of rural states -- Wyoming, North Dakota, South Dakota, Nebraska and Utah -- had the lowest unemployment rates in November, ranging from 3.2 percent to 3.7 percent. The Labor Department on Friday said the national jobless rate in December was 7.2 percent.

Historically high prices for energy and grains have been a boon to their economies, although recent declines in commodity prices are beginning to bite, economists said.

For the majority of the country, the air has come out of a decade-long housing bubble, with home prices falling an average of 20 percent in the past year and almost one in ten mortgages either overdue or in foreclosure. A wide swath of industries is feeling the pain, including real estate agents, bankers, builders, lumber companies and furniture makers.

The real estate bust is at the heart of mounting job losses in California, which has seen its unemployment rate reach 8.4 percent, the third-highest in the nation. In the year ending in November, 71 percent of the nonfarm jobs lost in California were housing-related.

Many of the nation's leading mortgage lenders -- Countrywide Financial, New Century Financial, IndyMac Bancorp, and Fremont General Corp. -- were based in California and have since been bought by larger banks or gone bankrupt.

The recently unemployed in California include Filemon Galvan, 41, of Buena Park, Calif., who was laid off from his job as a carpenter for a housing subcontractor in August.

"It's been a long time since we had a nice family outing," Galvan said in Spanish.

As the country's leading lumber producer, Oregon has also taken a direct hit from housing, with sawmills producing sharply less than a year ago. The slump has cost Oregon about 1,000 logging jobs in the past two years and more than 7,000 jobs in wood manufacturing, which includes plywood mills and the production of door and window frames, said David Cooke, an economist in Oregon's employment department.

Not even tiny Rhode Island, which has the nation's second-highest unemployment rate at 9.3 percent, has been exempt from the housing bust.

The slide has cost Rhode Island more than 3,000 construction jobs in the past year, according to the U.S. Labor Department.

Due to a combination of high energy prices, a strong dollar and competition from overseas, manufacturers have been manhandled for most of this decade -- and ground zero for the loss of factory jobs is Michigan. Its crumbling auto industry explains a large part of the state's nation-leading unemployment rate of 9.6 percent. Around the state, and across the country, the state's automakers have had to close plants and showrooms, cut back workers' hours and reduce wages as consumers' appetite for new cars dwindles along with their job security.

But the manufacturing slowdown has gone far beyond the industrial Midwest. South Carolina's jobless rate has reached 8.4 percent, the third-highest, as it struggles to replace lost textile and apparel manufacturing jobs with the type of high-tech industries that North Carolina has been able to attract.

And Rhode Island, not generally known as a manufacturing hub, has suffered. The industrial conglomerate Textron Inc., which is based in Providence and makes Cessna jets and Bell helicopters, laid off 2,200 of its 43,000 workers last year.

Most of the state's manufacturers are small, however, and have had a tough time weathering the credit crunch.

Lincoln, R.I. resident Larry Miller believed he would retire from the auto parts manufacturer where he first got a job as a newly married 26-year-old. That was two factory closings ago, the most recent being a plant owned by KIK Custom Products, which also had employed his wife.

"The word loyalty is gone," said Miller, shaking his head while sitting at his kitchen table. He found a new job in Massachusetts, but his wife is still looking.

Like South Carolina, the state hasn't yet made a successful transformation from manufacturing to newer-economy industries such as biotech or computing.

"I would summarize Rhode Island's economy as information age, hold the information," said Leonard Lardaro, an economist at the University of Rhode Island.

6 High Paying Jobs

Here are six high paying jobs you may not have heard of:

Eco Tourism Director

Traditional hospitality careers are increasingly marching to the ecotourism drumbeat. According to the International Ecotourism Society, ecotourism is growing at three times the rate of traditional vacationing, increasing annually up to 30 percent. If you're just preparing for the field, seek an associate's degree in hospitality, travel, or tourism. If you're already aboard, why not train to manage a hotel, bed and breakfast, spa, or resort with a graduate degree in business or hospitality? The majority of lodging managers are self-employed professionals. Top earners in 2007 averaged $83,240 for the year.

Professional Hacker

Ever hear of a certified ethical hacker? That's the professional IT certification for a computer scientist that works as a security specialist, forensic investigator, or network defense architect for corporations, the government, and law enforcement agencies to help prevent hacking or to track down perpetrators. To get into the field, you'll need more than the hacking skills you tweaked together in your garage. Begin by earning a bachelor's degree in computer science or information technology. You can get additional online college training in network security. The top 50 percent of computer scientists earned between $97,970 and $123,900 in 2007.

Pet Psychologist

Don't be so shocked. Even Sparky sometimes needs help to keep from gnawing through the neighbor's bed of prized roses. Once the local vet has ruled out physical ailments that can contribute to rude pet behavior, people who love their animals may need to call in a trained, certified behaviorist or pet psychologist. As with human patients, pets can be analyzed and taught to act contrary to destructive impulses. There are even certified applied animal behaviorists. To get into the field, you'll need a master's or doctorate degree in psychology, preferably with additional work in zoology and animal behavior. Salaries vary greatly by locale, but can be upwards of $90,000 a year.

Conservation Consultant

There are companies who are greatly concerned with increasing energy efficiency. And there are those with a conscience, striving to reduce their carbon footprint. When Yahoo! decided to go carbon-neutral by 2007, they hired a director of energy strategy and climate change. Combine your thirst for conservation with an engineering degree to prepare for this thriving field. The U.S. Labor Department predicts a hefty 25 percent increase in environmental engineers during the 2006-2016 decade. In 2007, the top 50 percent earned between $70,000 and $106,000.

Fashion Consultant/Personal Shopper
Among those who care about their appearance, many are born with amazing taste; some have to work for it. Fashion designers and consultants help those who can afford personal attention to transform their image. You can be the one to consult on hair, makeup, and fashion--and then be the one to take your clients shopping. Get career training through an associate's or bachelor's degree program in fashion design. Top earners in the fashion design trades in 2007 took home $121,640 on average.

Mobile Experience Architect

The cool streaming videos and eye-popping CD covers that get delivered to the screens of millions of cell phones and PDAs each hour are designed to make you spend money. Information architects create the structure and mind-manipulating patterns (site maps) of each mobile delivery. You'll need to learn about marketing, strategy, and user testing through a degree program in computer science, Web design, or business. There's even an IT certification for professional mobile architects. Salaries range into six figures.

Now is the time to get into the hot career fields you might not have ever thought about.