The 10 cities most in financial difficulty

Diving brief:

  • Las Vegas is the number one U.S. city where people are experiencing “financial distress” during the coronavirus (COVID-19) pandemic, according to a WalletHub analysis of the nation’s 100 largest cities.
  • Rankings were determined by a weighted average across six categories, including credit ratings, average number of troubled accounts and change in the number of bankruptcy filings in June 2020 compared to June 2019. The 10 cities with the most people in financial difficulty are: Las Vegas; Chicago; Houston; San Antonio; Dallas; Phoenix; Los Angeles; Austin, TX; Miami and Fort Worth, TX.
  • The cities with the lowest rates of financial distress are Anchorage, Alaska; Madison, Wis.; Jersey City, New Jersey; Fremont, California; and Newark, New Jersey.

Overview of the dive:

the national unemployment rate was 7.9% in September, according to the US Bureau of Labor Statistics (BLS), compared to the 3.6% unemployment rate in January. However, the real unemployment rate is probably closer to 26%reports Axios.

Hawaii has the highest unemployment rate among states at 15.1%, followed by Nevada at 12.6%, according to Forbes, partly because of the pandemic heavy toll on tourism industries.

Vegas; Henderson, Nevada; Reno, Nevada; and North Las Vegas, Nevada, were among the top five cities with the largest change in average number of distressed accounts in September compared to January, according to the WalletHub study.

Casinos and resorts are slowly starting to reopen, yet. And employment in the leisure and hospitality industries increased by 318,000 people in September, with 69,000 jobs added in entertainment, gambling and recreation, according to the BLS.

Orlando, Florida, another tourist hub that WalletHub ranked among the top 15 cities in financial difficulty, has also seen some relief following the reopening of Walt Disney World Resort. The parks laid off 70,000 workers early in the pandemic, contributing to the leisure and hospitality sector’s staggering 40% unemployment rate in April.

Sarah J. Greer