Department of Labor release

More News Idaho, U.S. bleeding jobs ISU halts med use of dogs Offices, banks closed Nov. 11 Department of Labor release State presses testing company Obama on economic crisis Tractor tire pins local man ON takes steps to trim costs Crapo, Simpson pushing Amtrak Final Bannock Co. results Area state Legislature results Final Bingham Co. results No surprises in some races Hospital merger process starts Local man pinned under tractor Dems gain 5 in Senate Sports Poky falls to Hillcrest ISU women win first exhibition Bay leads ISU come back

Press release from the Idaho Department of Labor

The financial crisis tore ever deeper into the Idaho economy in October, driving the seasonally adjusted unemployment rate to its highest level in five and a half years.

The statewide rate jumped four-tenths of a point to 5.4 percent from September, twice the October 2007 rate. It was the eighth consecutive monthly increase. Six rural counties spiked over 10 percent each, the first time that many counties have been in double digits since 1999.

"Sometimes rural areas get hit hardest - and that's certainly true for those six counties that hit double digits last month," Idaho Department of Labor Director Roger B. Madsen said. "But they aren't alone this time."

The unemployment rate was up from October 2007 in every city, labor market area and all 44 counties.

Layoffs and closures in the high technology sector of southwestern Idaho, northern Idaho's timber industry and construction declines statewide pushed the number of Idahoans without jobs over 40,000, double a year ago and the highest number of people out of work in more than a quarter century. Nearly 45 percent of those idled workers were in the Boise-Nampa metropolitan area. The Department of Labor's local offices in Boise, Meridian and Caldwell will remain open an hour longer Monday through Thursday until Dec. 18 to help them.

Only during the dire economic times of the early 1980s has Idaho experienced more than 40,000 workers off the job.

"The economic evidence for a recession is hard to ignore," the state's new economic forecast declared. "This recession is likely to be more like the 1981-82 recession than the mild 1990-91 and 2001 downturns."

The state government's Division of Financial Management sees no relief from the slide for another year.

The Idaho economy lost more than 9,500 private sector jobs between September and October. The contraction was widespread - hotels and restaurants were down another 2,500, construction 2,100, trade 1,500, manufacturing and professional and business services about 650 each. Those losses were only partially offset by the return of teachers and staff to the public schools.

Nonfarm jobs have been eroding since April, and there were over 11,000 fewer by October than a year earlier.

Total employment fell to 719,000, nearly 18,000 fewer than a year ago and the lowest employment level since June 2006. The escalating jobless rolls continued pressuring the state's Unemployment Insurance Trust Fund. Benefit checks this fall have been running at nearly double the number issued in 2007 and ahead of the record pace of 2003, cutting dramatically into the fund balance. Nearly $170 million in regular unemployment benefits and another $13 million in federally financed extended benefits were paid through the first week of November, triggering a 3 percent reduction in the maximum worker benefit and a substantial increase in employer tax rates for 2009 to begin rebuilding the fund. The specific rates will be determined later in November.

Through the first week of November 2007, the fund paid out only $102 million in benefits.

Idaho's rate increase mirrored the increase for the nation, which jumped to 6.5 percent. It was the 85th straight month that Idaho's rate has been below the national rate but the gap is narrowing.

The number of idled workers in Idaho has increased monthly since December, and the year-over-year increase in unemployed - 20,600 - is the largest on record as is the nearly 18,000 decline in the number of workers with jobs.

The highest unemployment rate was in Clearwater County at 12.2 percent. Double-digit rates were also posted in Adams, Shoshone, Boundary, Valley and Benewah. None were in double digits in September.

Six counties recorded rates at or below 3 percent. The lowest rate was 2 percent in Franklin County.

One year ago, the highest county unemployment rate was 7.4 percent in Clearwater County and the lowest was 1.2 percent in Madison and Power counties.

Current Rating: 0 of 0 votes!

Rate File: Select Rating: * ** *** ****

Reader Comments

Submit a Comment

Commenting Rules

Report a Comment