When Bad News Hits, It's Often A Great Opportunity for Movers and ShakersThere is a new report out by Sabrina Perry of Graphiq that lists the ten worst cities to get a job right now.
Before we post the list, here's a Nationwide map of the current low to high unemployment rates in the U.S.
So here's the list of the 10 worst towns to get a job in, right now.
10. Pontiac, Michigan : Unemployment rate: 11.60%
9. East St. Louis, Illinois : Unemployment rate: 11.70%
8. Selma, Alabama : Unemployment rate: 11.90%
7. Harvey, Illinois : Unemployment rate: 12.10%
6. Wasco, California : Unemployment rate: 12.30%
5. Detroit, Michigan : Unemployment rate: 12.70%
4. Yuma, Arizona : Unemployment rate: 16.10%
3. El Centro, California : Unemployment rate: 22.10%
2. Brawley, California : Unemployment rate: 25.90%
1. Calexico, California : Unemployment rate: 27.40%
From the average job hunter's perspective, the top ten worst cities for jobs might be a useful list to avoid for certain people on the move, it may be quite useless to the majority of the people living and working in or around those poorly performing towns. After all, if they're stuck there and can't move away easily, this list does nothing to help them a new, better job.
From the investor's perch, however, it may seem like a golden list of places to spend a little and get a lot. May key prices that affect businesses are fairly low in places with high unemployment rates, because anyone doing business there is desperate enough to lower prices to ridiculously low rates. And even the local government often offers various financial incentives, like lower taxes, in order to attract more and new business to their destitute area.
On top of that, the list of cities in the report, actually pretty much all have declining unemployment over the long term. The problem is, they're not declining as fast as other places, or to such low numbers as the national average of 5.1%. Yet they are declining, in the long term. So that means a slow, steady increase in the workforce, and that means a longer time available to create businesses and jobs at lower rates that are more sustainable than elsewhere. Therefore, a smart investor armed with solid accounting can go a long way in slumping cities.
After all, we've all heard the expression "Buy low. Sell high.", and most of us know that when you're at the bottom, there's usually nowhere to go but up. Plus, the most successful entrepreneurs throughout history have nearly all created their best successes by investing in something when it seemed that all around them, the chips were down. They knew when to go all-in, and dare the seemingly unsurmountable odds stacked against them. And they didn't do it sitting pretty in the middle of an easy place or a fully relaxed condition. They did it on edge, when their backs were against the wall, or when they saw a chance to do something huge in the most unlikely of ways.
And that pretty much sums up why it's a great time to be a self-starter or entrepreneur in those cities, willing to do something new and different. No wonder a growing number (over 50 Million US workers, at last count in September 2015) have gone independent, starting their own business venture or finding irregular jobs to make their financial aspirations become increasingly realized. And those that start a business in an environment where the context is difficult, stand to make greater gains from the get-go, despite the challenges on their path to success.
This may explain why productized service marketplaces like Uber, Fiverr, AirBnB and others are all growing fast, especially in economically hard hit areas. They offer individuals the ability to reach customers on their own terms, without having to carry the burdens of the old, heavy legacy institutions of brand-building, marketing and advertising. Instead, their sellers can leverage their market's strength in brand-name recognition, and deliver more specific services to highly targeted prospective customers, at lower rates, even while maximizing their returns.
For an insightful perspective on entrepreneurialism in American history, be sure to watch the following video, which is a speech by John Steele Gordon, Author of "An Empire of Wealth", delivered at Hillsdale College.
Are you thinking of starting your own business? What industry appeals to you the most? Which, if any, marketplaces are at the top of your list as ways to get new customers, and why? Be sure post your comments below, or message us privately if you're shy and opinionated.