Nationwide, 4.4% of the American labor force is unemployed, a large improvement from the recessionary unemployment peak of 9.9% in 2010. In the Detroit-Warren-Dearborn metro area, the unemployment rate of 5.3% is higher than the national figure and far lower than the city’s recessionary peak unemployment rate of 14.9%.
The industry composition within a city can have a major impact on its job market. Nationwide, 6.3% of American leisure and hospitality workers are unemployed, the largest share of any U.S. industry. Meanwhile, just 2.2% of federal, state, and local government workers are unemployed, the lowest jobless rate of any industry. In Detroit, 10.2% of all workers are employed in the leisure and hospitality industry, and 9.4% of workers are employed in government. By comparison, 11.1% of American workers nationwide work in leisure and hospitality, and 15.1% work in government.
Compared to less urban areas, cities tend to have more diversified economies, which may preserve the health of the job market to some extent if one major industry struggles. While many of the cities with less diverse economies have one industry accounting for more than 30% of employment, in Detroit the largest industry, professional and business services, accounts for 19.5% of total employment.
While the Detroit metro area’s unemployment rate has improved since the recession, the city’s economy has contracted in the process. As the unemployment rate fell by 9.6 percentage points since 2009, the size of the Detroit labor force decreased by 15,357 workers. Many of those who left the area likely did so seeking employment elsewhere.
Large cities often attract college graduates, and as a result may weather recessions better and recover from periods of high unemployment faster. While the share of adults with a bachelor’s degree is 25.3% in metropolitan areas with less than 250,000 residents, the college attainment rate in cities with more than 2.5 million residents is 36.2%. In the Detroit metro area, which is home to 4.3 million people, 29.5% of adults have a bachelor’s degree.