More than two years after the recession “officially” ended, according to economists, this weekend’s Labor Day holiday may not be the celebration of work it once was for many Americans. Nationally, unemployment is still 9.1 percent and economists say recent drops in the rate are most likely the result of people giving up on looking for work, not the result of new job creation.
Still, the Labor Department released some encouraging statistics on Wednesday, reporting that unemployment was down between July and June in 193 metropolitan areas. The rate held steady in 61 metro areas and increased in 118, but economists were upbeat after watching the unemployment rise in 90 percent of metropolitan areas just one month earlier.
Year-over-year, the jobless rate was down in 257 of 372 metro areas, while the nonfarm payroll employment rose in 232 communities.
The numbers, however, require some interpretation and are not all upbeat. Morgantown, W. Va., for example, had the biggest monthly decrease in unemployment, for 6.6 percent in June to 5 percent last month. But that’s only because people stopped looking for work, and the government only counts people as unemployed if they are actively seeking a job.
Historically, according to Oklahoma Employment Security Commission economist Lynn Gray, unemployment drops nationally in July. Unemployment was down in 72 of Oklahoma’s 77 counties last month, but Gray was cautious in her assessment of what the numbers meant.
Meanwhile, previously hard-hit areas suffered more setbacks. Detroit’s jobless rate jumped to 14.1 percent in July from 12.5 percent in June. Eleven of the 12 cities with the highest unemployment rates were in California. And in Yuma, Ariz., the unemployment rate was 30 percent, up from 27 percent one month earlier. That was the largest increase in any of the metro areas and attributed to shifts in the farming hub’s migrant workforce, the Associated Press reported.
Despite adding 117,000 jobs last month, the economy would have needed to add twice that number to make a significant dent in the national unemployment rate. (A Soshable info-graphic offered a great primer on where all the jobs are going. One-word hint: outsourcing)
Some areas of the country, however, had bona fide boasting rights when it came to unemployment figures:
- North Dakota: Bismark (3 percent) and Fargo (3.7 percent) held the number one and number two spots for lowest unemployment rates in the nation, thanks in large part to an oil drilling boom in the state.
- Rockford, Ill.: Things are still grim, with a 12.1 percent unemployment rate and a slight increase from the previous month. But year-over-year, Rockford’s 3.3 percent decrease was the largest in the nation. “Long-term trends show that Illinois is in a better place today than it was one year ago,” Illinois Department of Employment Security
Director Jay Rowell told WREX News.
- New York State: While Wednesday’s Department of Labor report showed no significant gains, two reports released by think tanks this week show the Empire State has done better than most throughout the recession. New York added jobs more rapidly between 2007 and 2010, then lost jobs at a less painful rate.
- West Virginia: This week’s reports showed unemployment at its lowest level in nearly two decades. Political leaders praised a host of economic development and construction projects in the state. Coal mining is also faring well in the state.
Nationally, there is some reason for optimism, according to the Associated Press, which reported “The July-September quarter is off to a better start. Consumer spending rose 0.8% last month, the largest gain in five months. Americans bought more cars and spent more to cool their homes during a heat wave.”
The Labor Department is scheduled to release its federal unemployment rate for August on Friday, heading into the holiday weekend.
Economists surveyed by Dow Jones expect the rate to hold steady at 9.1 percent and show that the economy added 80,000 jobs last month.
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