An Analysis of Unemployment

Unemployment Rate: The unemployment rate measures the share of workers in the labor force who do not currently have a job but are actively looking for work. This indicator is crucial for understanding conditions in the labor market, as it provides valuable insights into employment trends and economic health. Race and Ethnicity Predominance: This layer shows the main ethnic groups living in the region, revealing the link between unemployment, discrimination, and inequality. Understanding this connection is essential as it significantly impacts individuals, households, and macro-economies. Asthma Prevalence: Asthma prevalence is a vital layer as it demonstrates the socio-economic cost of unemployment in terms of health. There is often a strong correlation between the prevalence of asthma and employment, highlighting the importance of addressing health implications related to unemployment. Median Home Value: Median Home Value tends to reflect the general economic condition of the local community. The relationship between median home value and unemployment rate is complex and influenced by various economic, market-related, and policy factors. Unemployment can impact housing affordability and demand. Asthma Prevalence Hot Spots: These describe geographical locations or regions where the prevalence of asthma is significantly higher than the local or national average. Identifying these hot spots is important as they indicate areas with a higher burden of asthma-related health issues, necessitating targeted healthcare interventions. Outliers in the Percentage of the Population that is White: These refer to regions or areas where the proportion of white individuals significantly deviates from the average or expected percentage in the broader population. This layer is critical as the percentage of the population that is white is often used to measure racial composition in an area, revealing demographic patterns and disparities. Median Household Income: Median Household Income is a vital factor affecting a family's quality of life, education affordability, safety, and security. The strong correlation between this layer and the unemployment rate reflects the negative impact of unemployment on various aspects of households.

Directions: Use the layer list in the bottom right corner of the map extent to select a layer to display.

Describe the relationship between the geography of unemployment and the related indicators. For example, what do you see when you compare each layer?

Based on the Unemployment Rate Layer and Median Household Income Layer in the map, it is evident that income and unemployment exhibit an inverse relationship. Lower-income households are more likely to experience higher unemployment rates. The areas with Median Household Income above $200,001 tend to have relatively lower unemployment rates, falling within the light yellow (3.5%-10.1%) and green (0.0%-3.5%) categories. A case in point is the Beverly Hills and Westridge Canyonback Wilderness Park neighborhoods in Los Angeles, which boast Median Household Incomes exceeding $150,000, with many clustered around $200,001. Correspondingly, their unemployment rates are between 0.0%-10.1%. Conversely, neighborhoods like Cienega and Hyde Park exhibit significantly higher unemployment rates, ranging mostly from 10.1%-16.7% and 16.7-100%. These areas generally have lower household incomes, with many households facing poverty. Median Household Income is consistently in the $50,000 range, and some streets even have a median income of $0.

Another noteworthy observation is that Los Angeles heavily relies on tourism as a catalyst for development. An article on the Discover Los Angeles website named Tourism Build LA highlights that tourism supported a substantial number of jobs in the Leisure & Hospitality sector, employing approximately 1 in every 8.5 workers in L.A. County. Tourism plays a crucial role in creating jobs, fostering business activity, and contributing to the city's status as a global economic hub. However, the outbreak of Covid-19 in 2021 had severe consequences on the tourism industry, impacting the city's employment rates significantly. Los Angeles, being reliant on tourism, faced a harsh blow from the pandemic, leading to higher unemployment rates compared to other regions.

Moreover, the emphasis on tourism-related industries has influenced the types of jobs and opportunities available in the city. Many tourism-related roles are considered "low-barrier-to-entry" jobs, such as tour guides, receptionists, and ticket agents. The pandemic further accelerated the shift towards automated services, like ticket vending machines and interpretation machines, as they are easier to sanitize and manage, resulting in fewer manual service jobs.

How is the influence of or exposure to unemployment different in different places? Why? Use the course readings, discussions, and your map to answer the question.

Median Household Income is a critical factor that profoundly impacts a family's quality of life, educational opportunities, safety, and security. The strong correlation between this layer and the unemployment rate underscores the negative impact of unemployment on nearly all aspects of a household.

Bell Gardens, located in the Southeast region of Los Angeles County, is surrounded by neighboring communities like Bell, Commerce, Cudahy, Downey, Maywood, and South Gate. The map shows that Bell Gardens is predominantly a Hispanic or Latino neighborhood, with a percentage of 93.7% in the county. Most of the area experiences unemployment rates ranging from 10.1% to 16.7%, with one neighborhood facing a high unemployment rate of 21 percent.

On the other hand, Verdugo City, a hamlet in Los Angeles, Southern California, boasts a median real estate price of $619,142, making it more expensive than 38.8% of neighborhoods in California and 81.8% of neighborhoods in the U.S. The predominant race/ethnicity in this area is White alone, not Hispanic or Latino. The unemployment rate in Verdugo City is significantly lower, mostly falling within the 3.5%-10.1% range. Security Gauge's website specifically mentions that the neighbors in Verdugo City are upper-middle income, making it an above-average income neighborhood, surpassing 73.3% of neighborhoods in America.

Regarding predominantly Asian areas, there does not seem to be a very significant link between race and unemployment. For example, in the predominantly Asian area to the east of downtown Los Angeles, consisting of Arcadia, Temple City, Alhambra, and Rosemead, there is a wide range of unemployment levels. Streets exhibit unemployment rates in the 3 percent range, while others have rates as high as 13 percent. This suggests that other factors may influence Asian employment in Los Angeles, and race and employment rates may not be sufficient to establish a direct correlation.

In terms of the geographic distribution of the unemployment rate, L.A.'s unemployment pattern aligns with the description we discussed in class that "the neighbors of the unemployed are also likely to be unemployed." In L.A., both high and low unemployment rates appear to be clustered. For example, the Beverly Hills neighborhood has around 15-20 neighborhoods with unemployment rates ranging from 4-8%, while the Hyde Park neighborhood experiences high rates, reaching 16-19%. This observation supports what Professor Pavlina R. Tcherneva mentioned in "Unemployment: The Silent Epidemic" that "unemployment behaves much more like a virus or an infectious disease than a random shock event" (7). Because the declines in aggregate demand for workers tend to "disperse in a specific geographic pattern" and "amplifying the unemployment problem in the community and neighboring areas" (7).

How do the results of your analysis relate to what you have learned so far about the costs of unemployment? For example: public health and unemployment, social group identity-based advantage and disadvantage, and housing.

From the Map, there is a strong correlation between the unemployment rate and Asthma Prevalence, indicating that areas with high unemployment rates (generally higher than 11%) tend to have a higher incidence of asthma, while areas with low unemployment rates (generally lower than 9%) have lower asthma prevalence. This association highlights health problems as a cost of unemployment. Studies show that unemployed individuals are more likely to experience increased levels of drunkenness, physical disease, depression, and anxiety. They also visit doctors more frequently and use more prescription drugs. These complex health issues create a vicious cycle, where job loss leads to health problems that hinder re-entry into the workforce. Even if individuals manage to find employment again, health issues may negatively impact their work performance. Tcherneva also points out in her essay that medical interventions alone are insufficient to address the ongoing labor shortage. Without enough job prospects, those who escape the "unemployment-ill health" trap might fall back into it (10). Furthermore, unemployment is strongly associated with suicide. According to Tcherneva, a meta-analysis of 63 nations revealed that the correlation between unemployment and suicide is nine times stronger than previously believed. Unemployment contributes to one in five suicides, although this statistic underestimates the psychological anguish caused by unemployment (9). In general, the impact of unemployment extends far beyond a drop in income. It encompasses a wide range of negative effects, affecting various aspects from macroeconomics to individual health, family dynamics, and child development.

References

Angeles, Discover Los, and Discover Los Angeles. “Tourism Generated Record $36.6 Billion Boost to Los Angeles Economy in 2018 | Discover Los Angeles.” Discover Los Angeles, May 2019, www.discoverlosangeles.com/tourism-generated-record-366-billion-boost-to-los-angeles-economy-in-2018.

Tcherneva, Pavlina R. “Unemployment: The Silent Epidemic.” Social Science Research Network, RELX Group (Netherlands), Jan. 2017, https://doi.org/10.2139/ssrn.3025544.

Los Angeles Times - Page Unavailable in Your Region. maps.latimes.com/neighborhoods/neighborhood/bell-gardens/index.html.

Schiller, Andrew. “Verdugo City, Glendale, CA 91214, Neighborhood Profile.” NeighborhoodScout, June 2023, www.neighborhoodscout.com/ca/glendale/verdugo-city#overview.