After rising to its highest level in nearly two years during the first half of 2011, the percentage of job seekers relocating for new positions dropped to a near record low to finish the year, according to global outplacement and executive coaching consultancy Challenger, Gray & Christmas Inc.

The latest data provides further evidence that one of the biggest obstacles to economic recovery could be the lack of mobility among the nation's unemployed.

During the last two quarters of 2011, an average of just 7.5 percent of job seekers finding employment relocated for their new positions. That is down nearly two points from an average relocation rate of 9.4 percent in the first two quarters of the year.  It was slightly lower than the same period in 2010, when 7.7 percent of job seekers relocated for new positions.

"It appeared that relocation was beginning to bounce back after plunging in the wake of the housing market collapse and the deep recession that followed," said John A Challenger, CEO of CG&C. "However, the latest numbers indicate that picking up stakes remains a last resort for the majority of job seekers, many of whom are unwilling to take a loss on the sale of a home for a position that may or may not last."

The percentage of job seekers relocating plunged in the wake of the housing collapse. Since the fourth quarter of 2009, the quarterly relocation rate has averaged just 7.9 percent. In contrast, an average of 15.7 percent of job seekers relocated for new positions each quarter in the pre-recession period from 2005 through 2007. Even during the onset and throughout most of the recession, from 2008 through the third quarter of 2009, the relocation rate averaged 13.2 percent.

"The largest factor behind the low relocation figures is, of course, the still-struggling housing market, which has shown no signs of improvement outside of a handful of markets," Challenger said. "Home prices are still falling and millions of homes are approaching foreclosure, which will saturate the market with even more low-priced inventory. Unfortunately, once home values begin to rebound, it could take years before homeowners are back above water."