In 2007 nine of the top ten states for proved oil reserves had an unemployment rate lower than the U.S. rate.
In 2012, nine of these top ten states had an unemployment rate lower than the U.S. rate, although the Colorado rate was lower by only 0.1 percentage points.
For the U.S., the gap between the 2012 and 2007 unemployment rate was 3.5 percentage points (8.1% – 4.6%). The percentage point gap for the top 10 states with proven oil reserves is:
- 5.1 California
- 4.2 Colorado
- 3.4 New Mexico
- 3.1 Utah
- 2.6 Wyoming
- 2.4 Texas
- 1.7 Louisiana
- 1.1 Oklahoma
- 0.9 Alaska
- 0.0 North Dakota
In other words, the economies in 8 of the 10 leading oil reserve states experienced faster reduction in unemployment rates, presumably in part because of the growth in the extractive industries. California and Colorado are the exceptions. For the state of Colorado, it is reasonable to ask the question, “Is Colorado’s high gap a result of more stringent regulation and growing opposition to fracking?”
©Copyright 2011 by CBER.