It is interesting to see that hardest hit states from housing are leading gains in employment. It is important to remember why states like California, Florida, Arizona, and Nevada were growing so fast to warrant the increasing home prices in the first place. They are very desireable places to live, particularly for the baby boomer generation. As housing stabilizes I expect the unemployment rate to drop substantially particularly in these states. For many folks that are out of work or are underemployed in jobs that they might feel are inferior to past positions, improvement in the housing and mortgage sectors will provide a substantial stimulus.