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Tuesday, June 21, 2011

Will Pittsburgh Steal the Rust Belt Lead from Chicago?

According to the latest economic report from the U.S. Conference of Mayors, Chicago's gross metropolitan product still ranks highest among the Rust Belt cities:

Metropolitan area GMP in US$ billions (2010)
Chicago
531.4
Detroit
196.3
St. Louis
128.7
Pittsburgh
115.6
Cleveland
105.1
Cincinnati
100.9
Milwaukee
85.3

And is the third-highest in the U.S.:

Metropolitan area GMP in US$ billions (2010)
New York
1282.6
Los Angeles
737.9
Chicago
531.4
Washington
426.1
Houston
378.9
Dallas-Fort Worth
376.8
Philadelphia
347.7
San Francisco
337.4
Boston
311.3
Atlanta
270.6

IRS data show that Chicago is a popular relocation spot for Rust Belt natives:

County County Seat
Migrations to Cook County (2004-08)
Migrations from Cook County (2004-08)
Net Migrations to Cook County (2004-08)
Milwaukee Milwaukee
4,607
5,259
-652
Cuyahoga Cleveland
2,560
1,706
854
Wayne Detroit
3,069
1,684
1,385
Hamilton Cincinnati
1,685
1,283
402
Allegheny Pittsburgh
1,273
981
292
St. Louis city St. Louis
1,159
883
276

However, the mayors believe that Pittsburgh will recover jobs lost during the recession before Chicago and its feeder cities:

Metropolitan area Return to peak employment Employment peak before recession
Job losses
Job loss (%)
Pittsburgh 2012Q1 2008Q2
-37,500
-3.3%
Chicago 2014Q3 2008Q1
-328,900
-7.2%
Milwaukee 2014Q3 2007Q2
-56,800
-6.6%
St. Louis 2014Q3 2008Q1
-81,700
-6.0%
Cincinnati 2014Q4 2008Q1
-72,300
-6.9%
Cleveland 2021Q2 2006Q1
-90,500
-8.4%
Detroit Beyond 2021 2005Q1
-323,400
-15.8%

And long before many struggling Rust Belt cities:

Metropolitan area Return to peak employment Employment peak before recession
Job losses
Job loss (%)
Pittsburgh 2012Q1 2008Q2
-37,500
-3.3%
Rochester 2012Q2 2008Q2
-18,200
-3.5%
Buffalo 2013Q1 2008Q3
-18,900
-3.4%
Syracuse 2013Q2 2008Q1
-13,300
-4.1%
Erie 2014Q4 2007Q2
-8,700
-6.5%
Grand Rapids 2015Q4 2005Q3
-36,700
-9.4%
Akron 2017Q4 2008Q1
-28,600
-8.3%
Canton Beyond 2021 2005Q1
-17,700
-10.1%
Dayton Beyond 2021 2005Q1
-42,400
-10.3%
Flint Beyond 2021 2005Q2
-24,700
-15.8%
South Bend Beyond 2021 2005Q1
-16,000
-10.9%
Toledo Beyond 2021 2006Q1
-40,500
-12.1%
Youngstown Beyond 2021 2005Q3
-27,000
-11.0%

The forecast for Pittsburgh's job market is even brighter than those of most destination cities for former Chicagoans:

Metropolitan area Return to peak employment Employment peak before recession
Job losses
Job loss (%)
Austin 2011Q2 2008Q3
-21,600
-2.8%
San Antonio 2011Q3 2008Q2
-22,000
-2.6%
Houston 2011Q4 2008Q3
106,700
-4.1%
Dallas-Fort Worth 2012Q1 2008Q1
-148,900
-5.0%
Pittsburgh 2012Q1 2008Q2
-37,500
-3.3%
San Jose 2014Q1 2008Q1
-78,600
-8.5%
Seattle 2014Q1 2008Q1
-135,300
-7.7%
Charlotte 2014Q2 2008Q1
-72,800
-8.4%
Orlando 2014Q2 2007Q4
-101,400
-9.3%
Portland 2014Q2 2008Q1
-82,500
-7.9%
Atlanta 2014Q4 2007Q3
-217,800
-8.9%
Phoenix 2016Q2 2007Q3
-244,100
-12.7%
Las Vegas 2017Q3 2007Q2
-133,900
-14.4%

As well as those of many large metropolitan areas:

Metropolitan area Return to peak employment Employment peak before recession
Job losses
Job loss (%)
Washington 2011Q3 2008Q3
-76,200
-2.5%
Houston 2011Q4 2008Q3
-106,700
-4.1%
Dallas-Fort Worth 2012Q1 2008Q1
-148,900
-5.0%
Pittsburgh 2012Q1 2008Q2
-37,500
-3.3%
Boston 2013Q2 2008Q2
-103,300
-4.2%
New York 2013Q2 2008Q1
-385,200
-4.5%
Philadelphia 2013Q4 2008Q1
-135,400
-4.8%
Chicago 2014Q3 2008Q1
-328,900
-7.2%
Atlanta 2014Q4 2007Q3
-217,800
-8.9%
San Francisco 2015Q4 2008Q1
-166,100
-8.1%
Los Angeles 2018Q2 2007Q3
-537,100
-9.5%

But migrants from Chicago's feeder cities aren't flocking to Pittsburgh:

County County Seat
Net Migrations to Cook County (2004-08)
Net Migrations to Allegheny County (2004-08)
Milwaukee Milwaukee
-652
46
Cuyahoga Cleveland
854
-16
Wayne Detroit
1,385
84
Hamilton Cincinnati
402
-26
St. Louis city St. Louis
276
33

Could that change, though, if Pittsburgh receives more positive press from national sources such as Forbes and The Wall Street Journal? In its quest to become a leading world city, Chicago may have relinquished power within its region. The City of Big Shoulders could continue to shrink if the Steel City successfully rebuilds its job market and reverses its population decline.

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