Poll: Job creation is best in the south and out west, underemployment remains high nationally

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Following today’s Labor Department report of 162,000 new jobs created in the month of March Gallup has released some survey data indicating what areas of the country are most at work.

While the positive new figures were hailed by the White House today as a sign that economic conditions are turning for the better Gallup is quick to point out that there is something of an illusory effect when its comes to job creation data. Underemployment not unemployment may be the best barometer for tracking the current state of the national job force. For the month of March the underemployment rate as measured by Gallup ticked up half a percentage-point to 20.3%. This means that more than one of every five American adults is currently either out of work or is relegated to a part-time position while seeking full-time work. The underemployment figure as reported through a sample size of 20,000 responders each month has remained fairly steady since late last year and dwarfs the more nationally acknowledged 9.7% unemployment statistic.

The Gallup survey also asked 16,778 U.S. employees to describe the hiring and firing activities of their current employer. Reponses were categories by those who saw an expansion of the work forces in their company, a reduction in the number of jobs, or an essentially unchanged number of those hiring and letting go over the past month. National data suggests that companies are again hiring at a slightly greater rate than letting go. 26% according to the survey are in a hiring phase against 24% of companies who are cutting jobs. This an improvement year over year from last January when those totals were essentially reversed, but a steep decline from January of 2008 when 40% of companies were said to be hiring against just 14% reducing their workforces.

Jobs of course are not evenly distributed throughout all regions of the United States. Manufacturing exports and a slight rebound in the housing market are thought to be the main factors in a sudden improvement in the job market out west. For the first time since November of 2008 more companies are said to be hiring (26%) than firing (24%) in the region. It is also a notable improvement from January when job creation was decidedly negative to the tune of a 21-29% hiring to firing rate in the American west.

Despite impressive gains made by many western states the south remains the best region for employment in the country. Increased oil prices have steadily improved the region’s fortunes over the past few months up to its current 28% hiring rate against 23% letting go. Lack of consistency meanwhile defines the job picture in the Midwest of recent months. An improved manufacturing sector has helped keep the overall market stabalize in the region yet the Midwest still barely breaks even at a 24-23% hiring to firing rate.

Even with renewed confidence on Wall Street the east continues to lag behind the rest of the country in job creation. Slower population increases in certain northern states could play an important factor in the lack of positive data coming out of the region. Since late last year the number of adults reporting their companies are letting employees go has been surging upward. The current data suggest an even number are now hiring (25%) as firing (25%) which is a noticeable decline from September 2009 figures that had the east at 27-23% creation to reduction in jobs.

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The March job creation data, which was the highest in three years, can only be viewed positively by a nation in the midst of prolonged economic downturn and thirsting for work. Yet as is the case with most economic indicators over the past year and half modest gains are often met with tepid enthusiasm. The White House has publically stated that it does not envision the overall unemployment rate to drop under 9% before the end of the year and the underemployment figures should too remain high for the rest of 2010. All regions of the country are feeling the effects of the poor job market but the recent upswing in the west and stabilizing figures from the south offer hope that a broader economic turnaround is underway.