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U.S. Mayors Seek More Domestic Spending To Stimulate Job Growth

Written by Jenna Weiner
Published: 6/20/2011

Mayors react to report saying cities could be plagued by high unemployment for years.

Faced with high and persistent urban unemployment rates, the U.S. Conference of Mayors, meeting this week in Baltimore, Maryland, has called on the federal government to stimulate domestic job creation.

Stimulate Business Growth

By December 2011, unemployment rates could reach double-digits in three-quarters of the 363 metro areas considered in the annual U.S. Metro Economies report, released today. And anticipating sluggish job creation, the report predicts 69 metro areas will have double-digit unemployment as late as the end of 2012.

To hasten a recovery to peak employment levels, the Conference of Mayors has issued a statement calling for increased domestic infrastructure spending. The also warned the federal government that austerity measures are ill-advised given shaky consumer demand.

The Metro Economies report might not seem like news for small business owners, who have slowed hiring and felt the pinch of contracting demand. The National Federation of Independent Businesses May 2011 survey showed a 3 point loss between April and May in the number of small business owners planning to add jobs. Futhermore, the number fell to a negative 1 percent of owners planning to hire, meaning unemployment could actually go up. The negative hiring trend is tied to diminished demand. A quarter of respondents said "weak sales" is their primary current challenge.

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