Jobless rate remains flat in August

By Howard Fischer
Capitol Media Services
Published/Last Modified on Wednesday, September 23, 2009 4:24 PM MDT


PHOENIX  Arizona’s seasonally adjusted jobless rate remained essentially flat in August.


New figures today from the Arizona Department of Commerce show the state added 19,700 jobs last month. That was enough to post a 9.1 percent unemployment rate, down from 9.2 percent in July.

The trend for Pima County mirrored the statewide situation, with a 0.1 percentage point drop to 8.0 percent. In the Phoenix metro area the rate remained unchanged at 8.4 percent.

But officials at the state Department of Commerce said today they do not believe the situation has gotten as bad as it will: They are expecting continued increases in the unemployment rate before it subsides.

Since the beginning of the recession in December 2007, Arizona has shed 311,700 jobs, including 194,600 in the last year alone.

And this is the 19th consecutive month where the number of people working in the state has been less than the same period a year earlier.

The big gain in job growth in August was in education, where employment at local public schools and community colleges added 22,500, with another 4,500 in the university system. But Lisa Danka, an assistant deputy director at the agency, said gains in that sector always are expected at this time of the year.

Even with that, though, the job growth was the weakest it has been in a decade for any August over the prior month.

Despite the slight decrease in the jobless rate, Cheri Levensen, a senior economist for the Department of Commerce, said this should not be seen as the sign of a trend — or that the worst is behind us.

She pointed out that the unemployment rate is based on a survey of about 1,000 households each month where residents are asked if they are employed and, if not, whether they are actively looking for work. Levensen said the state may be seeing a “back to school effect.’’

“Some people that may have indicated they were unemployed in the summer are now deciding to take classes or go into training programs,’’ she said.

And Levensen said the number of continuing claims for unemployment — those renewing their applications — remains constant, suggesting that most unemployed people are not having a lot of luck finding work.

One sector of the state economy that continues to remain particularly anemic is retail trade. It lost another 2,200 jobs in August, bringing year-over-year losses to 26,600.

“The demand (for goods) has not been there,’’ Levensen said. And she said the amount spent by parents for back-to-school supplies and clothing was less than historic patterns.

Danka also pointed out the weakness in employment in stores that sell home furnishings, building materials and garden supplies, all linked to the weak housing market.

The construction sector, however, managed to pick up 100 jobs between July and August, though apparently no thanks to home construction where the number of workers continued to shrink. But that was more than offset by an increase of 800 workers in “specialty trades,’’ a gain commerce officials said includes things like plumbers and electricians, suggesting people were spending money repairing buildings rather than constructing new ones.

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Seasonally adjusted unemployment rate:

Area / August 09 / July 09 / August 08

United States / 9.7% / 9.4% / 6.2%

Arizona / 9.1% / 9.2% / 5.9%

Phoenix Metro+ / 8.4% / 8.4% / 5.5%

Apache / 14.4% / 13.2% / 12.0%

Cochise / 7.2% / 7.1% / 5.7%

Coconino / 7.5% / 7.6% / 5.6%

Gila / 10.9% / 10.9% / 6.9%

Graham / 15.4% / 14.6% / 6.7%

Greenlee / 22.1% / 20.2% / 4.5%

La Paz / 8.3% / 8.5% / 8.2%

Maricopa / 8.2% / 8.2% / 5.4%

Mohave / 9.7% / 10.8% / 7.5%

Navajo / 14.6% / 12.8% / 10.5%

Pima / 8.0% / 8.1% / 5.6%

Pinal / 11.8% / 11.8% / 7.6%

Santa Cruz / 13.2% / 14.0% / 10.7%

Yavapai / 9.2% / 9.5% / 6.3%

Yuma / 19.1% / 19.5% / 18.0%

+ Phoenix metro includes both Maricopa and Pinal counties

 Source: Arizona Department of Commerce

Employment changes in selected industries

Sector / 1month job change / yearoveryear change / since peak

(negative numbers in parentheses)

Total / 19,700 / (194,600) / (3117700)

Manufacturing / 100 / (13,400) / (27,100)

Mining / (100) / (3,200) / (3,500)

Construction / 100 / (49,900) / (108,500)

Trade, transportation, utilities / (2,300) / (40,600) / (78,700)

Information / 0 / (2,800) / (16,400)

Financial activities / (800) / (10,200) / (21,200)

Professional and business services / (500) / (43,600) / (68,200)

Education and health services / 200 / (2,200) / (4,400)

Leisure and hospitality / (1,400) / (9,300) / (25,700)

Other services / (500) / (5,900) / (8,600)

Government* / 23,100 / (13,500) / (39,000)

* Includes state and local public education

 Source: Arizona Department of Commerce

 

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