1. Mount Vernon, Wash.

1. Mount Vernon, Wash.

Q1 2010 annualized job growth: 2.7%
Q3 2009 annualized job growth: -4%

First quarter of recovery: Q4 2009
Unemployment rate: 10.1%
Median household income: $53,656

Mount Vernon, a small town in the Skagit Valley, about 60 miles north of Seattle and 80 miles south of Vancouver, has a historic downtown, nearby whale-watching tours, eagle-watching and kayaking. The town's small job market has retracted significantly and could be poised for a rebound. Mount Vernon's relative affordability makes it an attractive alternative to Seattle.