The recession that swept across the U.S. in late 2007 caused mass layoffs, high unemployment rates, and high home foreclosures across the country. While the recession was felt by various industries in various places, and certainly still being felt in some industries and states, these are some states that were affected by the recession much worse than others.
- Nevada: The unemployment rate in Nevada went from 4.9% in 2007 to an all time record high of 14.3% during the recession, according to the Bureau of Labor Statistics, and it still hasn’t gone down much since then. Nevada also has the highest foreclosure rate in the country, as it is about five times that of the national average.
- Michigan: With the massive layoffs and closures of the automotive industry, which is a large part of the state’s economy, Michigan was hit hard by the recession. The state unemployment rate hovers around 16%, making it the highest percentage it has been in more than 40 years. 2009 was particularly bad for Michigan, as the state lost more than 282,000 jobs, according to Ann Arbor.com.
- California: California was hit hard by the economic downturn, specifically in home foreclosure, unemployment, and people filing for bankruptcy. The number of people filing for bankruptcy protection in the first quarter of 2010 ranked California at number one for bankruptcy protection. California also had high foreclosure rates with 1 in every 192 houses being foreclosed, and an unemployment rate of 12.6% in April 2010, according to Helium.
- Florida: Hit hard by the recession, Florida was among the highest states for bankruptcies, ranking in the top five. In addition, Florida continues to trade places with Nevada for the highest foreclosure rate in the country. Currently, the foreclosure rate is above 14%.
- Rhode Island: Rhode Island was greatly affected by the recession as unemployment rates reached a record high for the state at 12.7% during 2009. Additionally, job losses and other financial hardships were credited to Rhode Island coming in sixth amongst the states with the highest foreclosure rates in the country.
- Ohio: Unemployment in the state of Ohio reached 11% in 2009, twice as much as the year before, making it the seventh highest rate in the country at the time. Failing auto manufacturing and related industries were largely responsible for job loss in Ohio. In addition, Ohio had the tenth highest foreclosure rate in the US at the same time.
- Arizona: The foreclosure rate in Arizona was the second highest in the nation, behind only Nevada in 2009. More than 163,000 properties received foreclosure notices, which was about 1 in every 6 properties. The unemployment rate also affected the state, as it rose to 9.7%, the highest it had been in 27 years. In addition, Arizona has lost more than 271,000 jobs since the recession began.
- Utah: While Utah’s unemployment rate of 7.3% in 2009 certainly was not the highest, the rate rose from 2.6%, forcing hundreds of thousands of families into the poverty level. The increase put Utah at the fifth largest poverty increase in the nation during that time, reaching almost 12% of the state. Utah was also among the top five highest foreclosure rate states, up nearly 20% from the previous year.
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