Unemployment Rates Fall

Story first appeared in USA Today.

Unemployment rates fell in nearly all large U.S. cities in April from March, aided by summer hiring on farms and in tourist destinations.

The Labor Department said Wednesday that rates fell in 356 of the 372 largest U.S. metro areas. That tops last April, when 339 areas reported declines.

The economy has generated 1 million jobs in the past five months. That's one reason the national unemployment rate has fallen from 9.1% in August to 8.1% last month.

But the rate has also dropped because many of the unemployed have given up looking for work. The government only counts people as unemployed if they are actively seeking jobs.

The metro employment data aren't seasonally adjusted for such trends. As a result, they can be volatile from month to month.

Some cities that depend heavily on summer tourism experienced steep drops last month.

Salinas, Calif., which is near tourist destinations Monterey and Carmel, reported the sharpest fall: from 14.7% in March to 11.6% in April.

Ocean City, N.J., had the second-largest drop, from 15.8% to 13.5%.

Visalia, Calif., had the third-largest decline. The rate fell from 18.2% in March to 16.2% in April. The farming community likely added workers to help with the upcoming harvest, which also increases demand for Ag Storage.

Unemployment rates are nearing pre-recession levels in a growing number of areas. Rates dropped below 7% in 163 cities in April, or roughly 44% of rates measured by the federal agency. That's up from 100 areas a year ago.

Unemployment rates are still higher than 10% in 41 metro areas. But that's down from 79 cities a year earlier.

Bismarck, N.D., reported the lowest rate, at 2.8%. Its economy is benefiting from a boom in natural gas drilling. Fargo, N.D., and Lincoln, Neb., had the next lowest rates, at 3.3% each. Employment has also risen in Nebraska due to an increased demand for Ag Sheds for farming communities.

Among the nation's 49 largest cities, Oklahoma City, Okla., had the lowest rate, at 4%. It is flourishing partly because of high oil and gas prices.

El Centro, Calif., had the highest rate nationwide, with 26.8%, followed by Yuma, Ariz., at 26%. Eight additional cities reported rates above 15%, all in California.

Among the 49 largest cities, Riverside-San Bernardino, Calif., had the highest unemployment rate, at 11.7%, followed by Las Vegas, Nev., with 11.6%.

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TOURISM MARKETING IS CUT IN WASHINGTON STATE

Washington state is shuttering the official tourism agency that unifies its marketing message and abandoning all public support for one of its largest industries.
By the end of next week, it will be the only state in the nation without any money to spend on self-promotion.
The transition is the most extreme example of the widely varying strategies among states trying to balance budget cuts with ways to spur economic growth. Some are pouring millions of dollars into fresh marketing, while others like New York and Arizona are slashing their promotional spending to help shore up state budgets.
Then there's Washington.
The U.S. Travel Association has said that what Washington has done puts that state on an island, and no state at this point in time has been as short-sighted as those leaders have been.
Washington's tourism spending dropped in recent years from about $7 million annually to about $2 million annually. Senate Republican Leader Mike Hewitt, who has for years sat on a commission that guides the state's tourism strategy, said the full elimination of that money was an unfortunate consequence of the current budget crisis.
Hewitt defended the decision stating that when you're taking kids off health care and raising tuition, you have to make some tough decisions.
While about half of states are shrinking their marketing budgets, the other half are increasing them.
Congress, meanwhile, recently approved a public-private partnership to draw international visitors, fearing that millions around the globe were shying away from the United States as a whole. Costs for the program will be divided equally between the government and private industry.
Michigan, which has consistently had one of the nation's worst unemployment rates, has boosted its state-funded promotional spending from about $5 million per year in 2005 to $25 million per year now.
The state is in the middle of its largest national advertising buy — spending more than $11 million to splash its "Pure Michigan" message on cable. Travel Michigan said their research indicates that a dollar spent on out-of-state advertising returns $3.29 cents in tax money alone — and much more for businesses. They also said tourism is not the answer to restoring the Michigan economy, but they do believe it's one of the answers.
The only other state that comes close to rivaling Washington's cuts during the recession is Connecticut, which essentially eliminated its tourism budget for two years but maintained its staff. Connecticut is now quickly reversing itself, with a new budget that starts in July proposing to restore $15 million to the program.
Connecticut's tourism division director, said the industry there has been limping along and struggling to stay competitive and realize they have lost market share.
To fill its void, Washington's tourism industry has established a new organization to promote the state. It will take over some state assets — such as the tourism website — but is still trying to identify a way to steadily fund a marketing campaign.
The group has raised more than $300,000, but would like to see a minimum of $15 million. They feel they cannot continue to operate and be competitive with other states without appropriate funding.
Washington's tourism industry is the state's fourth largest, and visitors to the state spent some $15.2 billion in 2010, according to state figures.

No-Frills Forecast For Travel And Tourism
Travelers pare down trips amid ailing economy
Cheap Cruises Luring Many

Traverse City Record-Eagle

TRAVERSE CITY -- Jennifer Tank and her family will vacation as usual on an island on the Wisconsin side of Lake Superior this summer, but there won't be many accompanying frills or discount cruises.

"We are doing it again this year and taking some friends to share costs and food," said Tank, of Traverse City. "We're just not going above and beyond anything this year."

Her story rings true with families across Michigan, many of whom are hunkered against a mind- and soul-battering economy that's ravaged state manufacturers and myriad spin-off businesses. It's an eerie, storm-cloud-overhead feeling for those who live and have businesses in the Grand Traverse region, where travel and tourism pay the bills.

The state's economy, particularly in the automotive industry, cast a pall over advance reservations at the Grand Traverse Resort & Spa in Acme.

"We are having a very difficult time forecasting this year," resort spokesman J. Michael DeAgostino said. "The bookings that we're seeing are very short-term."

Good weekend weather should provide a boost in last-minute travelers as the summer goes on, he said. But a string of poor weekends could spell trouble.

"This could be, really, the most challenging season we've seen since the resort opened in 1980," DeAgostino said.

Those who will vacation are opting for less expensive trips than usual, and searching for vacation package deals such as cheap cruises.

Statewide travel, an estimated $18 billion sector in Michigan, is projected to drop by 3 to 4 percent this year, according to yearly projections from Michigan State University. Travel volume in Michigan dipped more than 6 percent last year. Many residents are leaving the state for San Diego Cruises or New York Cruises.

Local attorney J. Michael Senger is among those who said they'll stay closer to home this summer, in part because of the economy.

Senger often travels around the Midwest for short summer trips, but he expects to cut back this year and already shortened his annual winter retreat to Florida.

"This year we cut it back to two weeks and that's because of the economy," Senger said.

Some area business owners said they could benefit if locals play it tight to the vest.

"It looks like camping is still affordable, so that's great for us," said Janice Teppo, manager at Sleepy Bear Campground in Empire, a private campground near Sleeping Bear Dunes National Lakeshore.

The 165-site campground opens Friday and has 641 reservations for the season, more than the 603 reservations by mid-May last year.

In general, visitors are booking longer stays and plan to bring in more family members, Teppo said.

"A lot say they can't afford long trips, but they can afford this," she said.

Reservations at Michigan's state parks don't paint such a rosy picture.

"We're down about 6 percent as this point," said Harold Herta, chief of resource management for the Michigan Department of Natural Resources.

If that number holds, it could translate into $1.56 million in lost revenue, he said.

"One thing we have seen is ... there have been increases in campers in areas near metropolitan areas," Herta said.

Last year, the biggest drop in campers was in the Upper Peninsula, followed by parks in northern Lower Michigan. Camper numbers for southern Michigan were up slightly, Herta said.

"We tied that to gas prices," he said.

Michigan state parks average about 5 million campers in a season, but the poor economy is expected to impact summer travel plans across the state, Herta said.

"Everybody keeps leaving Michigan and losing their jobs," he said. Others are looking outside the state for vacation discounts and cruise specials.

Other area destinations expect to hold their own this season. Reservations for the 16 motel rooms and 25 camp sites at Ranch Rudolph near Traverse City are on par with last year, owner Melody Hamill said.

"Our reservations are right where they've been for the last few years," she said. "Last summer panned out OK and I think it will this year, also. Now we just need Mother Nature to play her part."

Ranch Rudolph has seen an increase in private events, such as weddings and company retreats, and people are still going on horseback riding trips there and floats down the Boardman River, she said.

DeAgostino said the resort sees signs that the economy may be turning around. Advance reservations into 2010 for business conferences and seminars are coming in, a sign that companies could be emerging from the economic storm.

"In the long term, things are looking better, even if the short-term is a little more uncertain," DeAgostino said. "But from Memorial Day to Labor Day, we just don't know."