Arizona jobless rate up
State matches national statistic

By Howard Fischer
Capitol Media Services
Published/Last Modified on Saturday, October 18, 2008 8:29 AM MDT


PHOENIX — Arizona’s jobless rate took another jump last month and now hovers close to 6 percent.


And economists at the state Department of Commerce said the situation will continue to deteriorate for the immediate future.

New figures Thursday put the seasonally adjusted unemployment rate at 5.9 percent. That’s up three-tenths of a percent from August; a year earlier the figure was 3.8 percent.

The last time the state jobless rate was this high was July 2003.

Both the metro Phoenix and Tucson areas posted a 0.2 percentage point month-over-month increase, going to 5.3 percent in Phoenix and 5.6 percent in Tucson.

Not unexpectedly, the construction industry continued to shed jobs. But the rate of decline another 4,000 employees is sharper than it has been so far.

That puts construction employment in Arizona at 185,700, down 25 percent since the peak in June 2006.

One surprise was the loss of 4,400 jobs in retail. Economist Frank York said stores normally boost employment at this time of the year.

He blamed the losses on a combination of factors, ranging from the credit crunch and commodity prices to falling consumer confidence.

Of some note is the fact that, unlike prior months, the increase in the state jobless rate was not mirrored at the national level. In fact, the federal unemployment rate remained constant at 6.1 percent. Frank Curtis, director of data systems for the Commerce Department, said that new development should come as no surprise.

“Arizona has been hit harder than most of the other states by the housing downturn,” he said. “And we’re still seeing the effects of that.”

There also were fewer people working in September than August in the leisure and hospitality industry, financial services and professional and business services.

Not all of the news was bad.

Frances Griego, another agency economist, said the number of manufacturing jobs dropped by 200 between August and September. But she said the historic trend has been for that industry to lose even more jobs at this time of the year.

And health care actually added 900 jobs month-over month — and is up by 10,200 from the same period a year earlier.

“We still have a growing and aging population,” he said.

Similarly, the growing number of young people in Arizona continues to boost education employment, with 10,300 more people working in that sector last month compared with a year earlier.

 Still, Curtis said, that’s not going to rescue the Arizona economy.

“What we expect it to do is mitigate losses,” he said.

In forecasts earlier this month, the Department of Commerce predicted the state will lose nearly 34,000 jobs this year and another 13,500 in 2009. At the same time, though, education and health care employment is predicted to continue to increase.

 

Comments

Write a Comment

Comment posters are responsible for the opinions they express and the accuracy of the information they provide. We urge comment writers to treat this as a public forum where manners matter. We encourage a collegial, non-insulting tone. All readers comments must be approved by our staff before posting to the Web site. They review submitted comments periodically during the day for offensive or off-topic content before posting. Be aware, in accordance with the Communications Decency Act and provisions upheld in judicial appeal, that you are responsible for comments posted on this Web site. The Douglas Dispatch is not liable for messages from third parties.

DO NOT POST:
* Potentially libelous statements or damaging innuendo.
* Obscene, explicit, or racist language.
* Personal attacks, insults or threats.
* The use of another person's real name to disguise your identity.
* Comments unrelated to the story.
* Personal Information (phone numbers, addresses, etc.)

Opinions, advice and all other information expressed in douglasdispatch.com's reader comments represent the individual's own views and not necessarily those of the Douglas Dispatch. The Douglas Dispatch does not endorse and is not responsible for statements, advice or opinions offered by anyone other than authorized Douglas Dispatch spokespersons.

Your thoughtful contribution to the online discussion is appreciated.

(optional)
   









Contact Us

Email the Editor
530 11th Street (85607)
P.O. Drawer H
Douglas, AZ 85608
tel: 520.364.3424
fax: 520.364.6750