Top 10 U.S. Cities with the Worst Job Markets and Earnings

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Aug 6, 2025

Struggling to find a job or earn well? These 10 U.S. cities face tough job markets and low wages. Discover which ones and why they’re falling behind…

Financial market analysis from 06/08/2025. Market conditions may have changed since publication.

Have you ever wondered what it’s like to chase a job in a city where opportunities seem to vanish like morning mist? I’ve been there, scrolling through endless job boards, hoping for a break in a place that feels stuck in an economic rut. Some U.S. cities, despite their charm or affordability, are grappling with sluggish job markets and wages that barely keep up with the cost of living. A recent analysis of the 100 largest U.S. cities sheds light on the toughest places to find work or earn a decent income, and the results might surprise you. Let’s dive into the 10 cities where job seekers face the steepest climb and explore why these places are struggling to keep up.

Why Some Cities Lag in Jobs and Earnings

Economic vitality varies wildly across the U.S. Some cities buzz with opportunity, while others feel like they’re running in slow motion. The rankings I’m sharing come from a detailed study that evaluated cities based on unemployment rates, labor force growth, job openings, and real income trends. The lowest performers face a mix of challenges: reliance on fading industries, slow job creation, and wages that don’t stretch far. It’s not just about fewer jobs—it’s about the quality of those jobs and whether they pay enough to thrive. Let’s unpack the 10 cities that landed at the bottom of this list and what’s holding them back.


Bakersfield, CA: A Struggling Agricultural Hub

Bakersfield, California, sits in the heart of the Central Valley, a region known for its sprawling farms and oil fields. But relying heavily on agriculture and energy sectors has left the city vulnerable. With an unemployment rate hovering around 9.6%—more than double the national average—job seekers here face a tough road. The lack of diverse industries means fewer opportunities for those looking to pivot into growing fields like tech or remote work.

Many of these cities are tethered to industries that peaked decades ago, limiting their ability to attract new talent or businesses.

– Economic analyst

What’s more, wages in Bakersfield haven’t kept pace with inflation. The real per capita income here is among the lowest for major U.S. cities, making it hard for residents to build wealth. If you’re considering a move, you might find the low cost of living tempting, but the trade-off is a job market that feels like it’s stuck in neutral.

Scranton, PA: A Rust Belt Relic

Scranton, Pennsylvania, evokes images of a bygone industrial era. Once a hub for coal and manufacturing, this Rust Belt city has struggled to reinvent itself. The study ranked Scranton poorly for labor force growth and job openings, with many employers offering roles that require on-site work and pay below the national average. It’s a classic case of a city caught in the shadow of its industrial past.

I’ve always found it fascinating how some places carry the weight of history so heavily. Scranton’s unemployment rate, while not as dire as Bakersfield’s, still sits above the national average at around 5.5%. For young professionals or those hoping to switch careers, the lack of modern industries like tech or finance makes Scranton a tough sell.

McAllen, TX: Limited Opportunities in a Border City

Down in Texas, McAllen faces its own set of challenges. This border city has a high unemployment rate of 6.4%, and job growth is sluggish. Retail and healthcare dominate the local economy, but these sectors often offer low-wage positions. The study highlighted McAllen’s low income growth over the past decade, which means even if you land a job, it’s unlikely to pay well enough to get ahead.

What strikes me about McAllen is its affordability—it’s one of the cheapest places to live in the U.S. But cheap rent doesn’t mean much if you’re stuck in a cycle of low-paying jobs. The city struggles to attract high-growth industries, which limits its appeal for ambitious professionals.


Fresno, CA: Another Central Valley Struggle

Fresno, like its neighbor Bakersfield, leans heavily on agriculture. With an unemployment rate of 8.5%, it’s one of the highest in the nation. The city’s economy hasn’t diversified much beyond farming and food processing, which leaves little room for high-paying or innovative roles. I can’t help but wonder how many talented folks leave Fresno for brighter prospects elsewhere.

The data also shows that Fresno’s median wages are well below the national average. Combine that with a lack of new businesses moving in, and you’ve got a recipe for economic stagnation. It’s a tough spot for anyone hoping to climb the career ladder.

Memphis, TN: High Unemployment, Low Wages

Memphis has soul, no doubt—think barbecue, blues, and Beale Street. But when it comes to jobs, the city’s struggling. The unemployment rate here is around 6%, and the study flagged Memphis for its low income growth and limited high-paying opportunities. Logistics and warehousing dominate, but these jobs often come with modest paychecks.

Cities like Memphis need to invest in education and infrastructure to break the cycle of low wages and unemployment.

– Urban economist

Perhaps the most frustrating part is the potential Memphis has. Its rich culture could attract creative industries, but without investment in new sectors, it’s hard for the city to shake off its economic slump.

Jackson, MS: A Capital City in Decline

Jackson, Mississippi, faces a 6.2% unemployment rate and a lack of job growth. The city relies on government and healthcare jobs, but these sectors aren’t expanding fast enough to meet demand. Low per capita income and a high poverty rate make it tough for residents to get ahead financially.

I’ve always thought capital cities should be economic powerhouses, but Jackson’s story is different. The lack of new businesses moving in keeps opportunities scarce, and that’s a tough pill to swallow for anyone trying to build a career here.

Rochester, NY: A Rust Belt Recovery Stalling

Rochester, New York, is the only city on this list with an unemployment rate below the national average, at around 4%. But don’t let that fool you—job growth is slow, and wages aren’t keeping up. Once a manufacturing giant, Rochester hasn’t fully pivoted to new industries, leaving many workers in low-paying or unstable roles.

The city’s labor force size is shrinking, which signals that people are leaving for better opportunities elsewhere. It’s a reminder that even a decent unemployment rate doesn’t tell the whole story if the jobs available don’t pay well.


Toledo, OH: Manufacturing’s Long Shadow

Toledo, Ohio, is another Rust Belt city grappling with a fading industrial base. Manufacturing still plays a big role, but those jobs are fewer and farther between. The unemployment rate here is around 5.8%, and income growth has been nearly flat for a decade. It’s a tough environment for anyone looking to break into a high-growth field.

What gets me about Toledo is its potential for reinvention. With the right investments, it could attract new industries, but for now, it’s stuck in a cycle of slow growth and limited opportunity.

Augusta, GA: Stagnation in the South

Augusta, Georgia, might be famous for golf, but its job market isn’t winning any trophies. The city’s unemployment rate is around 5.5%, and job openings are scarce. Healthcare and retail dominate, but these sectors don’t offer the kind of wages that lead to financial security.

The study pointed out Augusta’s low labor force growth, which suggests people aren’t flocking here for work. It’s a shame, because the city’s charm could be a draw if the economy were stronger.

Spokane, WA: A Northwest Struggle

Spokane, Washington, rounds out the list with a job market that’s struggling to keep up. The unemployment rate is around 5.7%, and the city hasn’t seen much growth in high-paying industries. Retail and healthcare jobs dominate, but they often come with low wages and little room for advancement.

I’ve always thought Spokane’s natural beauty could make it a magnet for remote workers, but the lack of diverse job opportunities holds it back. For now, it’s a tough place to build a thriving career.


What’s Holding These Cities Back?

So, what ties these 10 cities together? It’s a mix of factors, but a few stand out:

  • Overreliance on declining industries: Cities like Bakersfield and Fresno depend on agriculture, while Scranton and Rochester lean on fading manufacturing.
  • High unemployment: Most of these cities have unemployment rates well above the national average of 4.2%.
  • Low wage growth: Even when jobs are available, they often pay below the national average, making it hard to save or invest.
  • Limited new business: Without fresh industries moving in, job creation stalls, and talent leaves for greener pastures.

These challenges create a vicious cycle. Fewer jobs mean less economic activity, which discourages new businesses from setting up shop. It’s like trying to climb a hill with no traction—every step forward feels like two steps back.

Can These Cities Turn It Around?

It’s not all doom and gloom. Some of these cities have unique strengths that could spark a turnaround. For example, Memphis could leverage its cultural heritage to attract creative industries. Rochester, with its history of innovation, might pivot to tech or education. But it’ll take investment in infrastructure, education, and new industries to break the cycle.

Economic recovery starts with diversifying industries and investing in people. These cities have potential, but they need bold action.

– Workforce development expert

In my experience, cities that bounce back are the ones that aren’t afraid to take risks. Think of Pittsburgh, which transformed from a steel town to a tech hub. It’s not easy, but it’s possible with the right vision.


How to Navigate a Tough Job Market

If you’re living in one of these cities—or thinking about moving there—don’t lose hope. There are ways to stand out in a tough job market:

  1. Upskill relentlessly: Take online courses in high-demand fields like tech or data analysis.
  2. Network strategically: Attend local job fairs or virtual events to connect with employers.
  3. Consider remote work: Many companies now hire remotely, which can open doors beyond your city’s limits.
  4. Polish your personal brand: A strong resume and online presence can make you stand out.

I’ve found that persistence and adaptability are key. Even in a slow market, there’s always a way to carve out your own path if you’re willing to put in the work.

A Snapshot of the Struggles

CityUnemployment RateKey IndustryChallenge
Bakersfield, CA9.6%Agriculture, EnergyHigh unemployment, low wages
Scranton, PA5.5%ManufacturingDeclining industries
McAllen, TX6.4%Retail, HealthcareSlow job growth
Fresno, CA8.5%AgricultureLimited diversification
Memphis, TN6.0%LogisticsLow wage growth

This table only scratches the surface, but it highlights the core issues. Each city has its own story, but the common thread is a need for economic reinvention.

Final Thoughts: Opportunity Awaits, But It Takes Work

Living in one of these cities doesn’t mean you’re doomed to struggle. It just means you’ll need to be more strategic about your career. Whether it’s learning new skills, exploring remote work, or even considering a move to a thriving job market, there are ways to beat the odds. What’s most interesting to me is how these cities reflect broader economic shifts—some places adapt, while others get left behind. The question is, which path will these cities choose?

If you’re in one of these cities, what’s your experience been like? Are you finding ways to thrive despite the challenges, or are you eyeing a move to greener pastures? The job market might be tough, but with the right approach, you can still come out on top.

You have to stay in business to be in business, and the best way to do that is through risk management.
— Peter Bernstein
Author

Steven Soarez passionately shares his financial expertise to help everyone better understand and master investing. Contact us for collaboration opportunities or sponsored article inquiries.

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