Where job drain is biggest (it's not Ohio)

"Companies in leaner times often start applying new technology," says Keith Ewald, head of the bureau of labor market information in Ohio.

Illinois also took a hit in manufacturing, but that's just part of the reason it lost 3.7 percent of its workforce since 2001. The collapse of accounting firm Arthur Andersen, based in Chicago, left thousands unemployed. American Airlines and United Airlines have each faced serious setbacks recently, including layoffs and even rumored bankruptcies. The purchase of Bank One by Morgan Stanley has led to a thinning of several businesses tied into financial services in Chicago.

Colorado lost more than 4 percent of its workforce during the past three years for a variety of reasons. Most important: The state was a major hub of the telecommunications industry, where fiber-optic firms like Level Three, Quest, and Time-Warner Telecom slowed their pace of construction as the promise of a vast revenue stream dimmed. The acts of terror on Sept. 11 also played a role. Tourism fell sharply in Colorado after 9/11, because so many visitors get to the state by air. A long drought and a series of fires in 2002 also depressed tourism.

The cumulative effect dampened the state's population boom of about 2 to 3 percent a year through much of the '90s. That prompted homebuilding - a key bright spot in much of the US economy - to slacken.

"With fewer jobs here, there was less migration, and then less construction, and that led to another loss of jobs," says Rich Wobbekind, a business professor at the University of Colorado.

In South Carolina, it had been known for several years that apparel industry was failing because of Chinese competition. But Chinese competition has evolved to the point that countries like Mexico have sought out other industries in which to compete because they, too, are losing to China. Now another key South Carolina industry, auto parts, faces competition from Mexico.

New efficiencies in the chemical and paper industries have also made many workers obsolete. And as in other states, South Carolina's state budget woes have led to a freeze on government salaries and in hiring.

In North Andover, workers earning part-time wages after getting laid off are having a hard time making ends meet. One recent study found that a wage of no less than $22 an hour is needed to afford a two-bedroom apartment. The high-cost of living here has chased many of Lucent's former workers out of state, says Nillson, looking for work in the South and Southwest where rents are lower and hiring is up.

And like in so many communities that have seen employment pillars crumble, what is noticeable is not only the lack of jobs, but a shaken sense of community.

The Loft, says Ms. Cassidy, once was the site of near-weekly parties celebrating job promotions and growing stock options. Now, there's rarely a reason to hire a DJ, and faces that were familiar for more than 20 years are rarely seen. Says Cassidy: "They're not going to drive up here to say 'hi' if they don't have work to do."

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