In an examination of the geographic distribution of the urban demand for labor and its relationship with unemployment in Philadelphia, this study: (1) considers the potential contribution of new businesses in rehabilitating the ghettos, (2) examines the relative attractiveness of different parts of the city to various types of industries, and (3) presents a cross-sectional analysis of the industrial employment structure by geographic area. The study concludes that the city's slow employment growth has been due to a failure to compete with suburban areas for new industries, rather than inadequate growth in existing industries. A policy of attracting new industry is not considered feasible, because economic forces deter business expansion. The findings indicate that policies should be directed toward increasing the productivity and mobility of ghetto residents. Programs such as training and urban transit systems should be given priority. (BH)