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Best And Worst Cities For High-Paying Jobs

Forbes.com recently did a story on the Best And Worst Cities For High-Paying Jobs .

Media coverage of America’s best jobs usually focuses on blue-collar sectors, like manufacturing, or elite ones, such as finance or technology. But if you’re seeking high-wage employment, your best bet lies in the massive “business and professional services” sector.

This unsung division of the economy is basically a mirror of any and all productive industry. It includes everything from human resources and administration to technical and scientific positions, as well as accounting, legal and architectural posts.

Overall there are roughly 17 million professional and business services jobs, 4 million more than manufacturing. This makes it twice as big as the finance sector and five times the size of the much-ballyhooed tech sector. While its average salary–roughly $55,000 a year–is somewhat lower than in those other elite sectors, its wages are still higher than those in all the other large sectors, like health. The sector’s $1 trillion in total pay per year accounts for nearly 20% of all wages paid in the nation; finance and tech together only account for $812 billion.

No. 10: Rochester, N.Y.
Known as a center for imaging due to the presence of major employers Xerox and Kodak, professional and business services jobs here have increased by nearly 5% in the last year. Also home to significant food, chemical and plastics production, the region has become a major health care and education center, with the University of Rochester leading the way as the region’s biggest employer.

No. 9: Peoria, Ill.
With a professional and business services sector that has grown 35% since 2008, the local economy is driven by agriculture and manufacturing. Peoria is home to construction giant Caterpillar, which employs roughly 18,000 people. With a solid high school attainment rate, there is a large population of educated, qualified individuals to fuel the workforce at a price point considerably lower than nearby Chicago’s–and that allows companies here to hire more workers.

No. 8: Chattanooga, Tenn.-Ga.
A once-shrinking city, Chattanooga has rebounded and is now actually growing despite the recession. It represents the economic potential of a new industrial zone in the South that could benefit from the expansion of foreign-based producers as they choose to build factories there. For example, Volkswagen is opening up a new production plant in the city. Insurance company Blue Cross Blue Shield also maintains a large office in Chattanooga.

No. 7: Wichita, Kan.
Though it is known as the “air capital of the world,” Wichita is home to a variety of companies. Aircraft manufacturers such as Boeing, Cessna, Bombardier Learjet and Raytheon all have major offices here. Agriculture stalwart Cargill has a sizable base in Wichita, and billionaire Charles Koch’s privately held conglomerate, Koch Industries, is headquartered here.

No. 6: Bethesda-Frederick-Rockville, Md.
This region’s professional and business services sector has grown nearly 22% since 2007. Bethesda is home to defense behemoth Lockheed Martin as well as Catalyst Health, a major health care provider. (The National Institutes of Health headquarters are also in Bethesda.) The local economy of this Washington, D.C., suburb is diverse, with no single dominant industry. Because of its proximity to the nation’s capital, it also benefits directly from the rapid expansion of federal government under Barack Obama.

No. 5: Virginia Beach-Norfolk-Newport News, Va.-N.C.
The economic makeup of the Virginia Beach-Norfolk-Newport News region is diverse, but with four military bases in the region, the U.S. Army and Navy wield a lot of influence. Major firms based in the area include online discount retailer Dollar Tree and transportation company Norfolk Southern. This combination of private- and public-sector employment drives growth–and jobs–in the business services sector.

No. 4: Houston-Sugar Land-Baytown, Texas
Professional and business services make up the largest component of Houston’s economy, making up roughly 15% of its jobs. The economy here remains heavily energy-driven, with jobs to be found at the myriad energy companies operating in the area. Some major energy companies that call Houston home are ConocoPhillips, Noble Energy and National Oilwell Varco.

No. 3: Austin-Round Rock, Texas
The local economy is governed by technology. Major industries include wireless technologies, semiconductors and software; Dell calls Austin its home. The number of major corporations in this region provides many job opportunities in the professional and business services sector.

No. 2: Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V.
Jobs in professional and business services make up 23% of this region’s economy. The local and federal governments, including the White House and Pentagon, create the need for high-end employment, including but not limited to legal and accounting positions. As federal power expands, so do opportunities for well-paying jobs in the area.

No. 1: Northern Virginia, Va.
This part of Northern Virginia is a commuting suburb–and the middle-class hub–of Washington, D.C. The educated workforce here is in close proximity to one employer that is still hiring: the federal government. This in turn has created a whole set of opportunities for “beltway bandits,” who serve the government as consultants, lobbyists and engineering specialists. As a result, professional and business services positions here make up a larger percentage of the local economy than any other in the country–providing a 27.2% share of the region’s jobs.

In Depth: Best Cities For High-Paying Jobs

In Depth: Worst Cities For High-Paying Jobs

Related Stories from Forbes.com

• Best U.S. Cities To Earn A Living
• The World’s Best-Paid Cities
• Europe’s Best Paid Cities
• Where Americans Earn The Most
• America’s Best And Worst Cities For New Jobs

Related Honolulu Hawaii Stories from Forbes.com

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• Why The ‘Livable Cities’ Rankings Are Wrong
• America’s Changing Landscape
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Hawaii Budget Shortfall Forecast to Increase Next Year

How low can you go?

• At least 48 states have addressed or still face shortfalls in their budgets for fiscal year 2010 totaling $168 billion or 24 percent of state budgets.
• An unusual number of these states are still struggling to balance their 2010 budgets two months after the start of the fiscal year. Three states — Arizona, Michigan, and Pennsylvania — have not yet adopted budgets for 2010. In addition, new shortfalls have opened up in at least 15 of the states that have adopted budgets — California, Colorado, Georgia, Hawaii, Kansas, Kentucky, Maryland, New Mexico, New York, Rhode Island, Utah, Vermont, Virginia, Washington, and Wyoming — plus the District of Columbia . These additional gaps — some of which have already been addressed— totaled $28 billion.
• Source: Center on Budget and Policy Priorities

The real news is that if, as is widely expected, the economy does not begin to significantly recover until the some time in calendar year 2010 and unemployment remains high through 2010, state shortfalls are likely to be even larger in fiscal year 2011 (which begins in July 2010 in most states).

To make matters worse, the Hawaii State Government is trying to pass along tax increases, in the form of higher transient accommodation taxes, among other things.

Among other increases, legislators approved three additional income tax brackets on top of the current nine, taking the top income tax rate from 8.25 percent to a whopping 11 percent. Hawaii now has the highest state income tax rate in the country and more tax brackets than any other state.

Another tax increase targets the state’s most important, and already struggling, industry: tourism. With hotel occupancy at a record low, the legislature raised the “transient accommodations” tax on hotel rooms from 7.25 to 9.25 percent—a 28 percent increase.

Expenditure cuts and tax increases are problematic policies during an economic downturn because they reduce overall demand and can make the downturn deeper. So, Hawaii is closing schools, which in turn will raise less intelligent children, who will some day run the State legislatures and probably raise taxes even higher.