Idaho unemployment rises in June

Idaho seasonally adjusted unemployment hit 3.8 percent in June, compared to 3.6 percent in May and 2.7 percent in June 2007. The May-to-June increase reflected a stagnant job market and escalating costs, and was the largest on record, the state Department of Labor said in a release.

  U.S. unemployment stayed at 5.5 percent from May to June 2008.

  Idaho total employment in June was 723,600, down 4,400 from May and 11,200 from a year ago. It was the largest month-to-month drop on record, and the year-over-year decline marked the third consecutive month with significant job erosion. Employment has not decreased this significantly since 1980, the Idaho Department of Labor said.

  The labor force declined by 2,500 from May and, for the first month in more than 20 years, fell significantly below year-earlier levels - dropping 2,800 below June 2007 to 752,400. Analysts speculated the decline reflected people dropping out of the labor force because of difficulty finding a good-paying job and coping with the higher expenses, especially in fuel, of taking a low-paying job.

  Businesses, especially small ones, continued struggling with escalating operating costs and declining consumer confidence. Employers reported only 17,500 new hires in June, the lowest number for June in over a decade.

  The economy slowed in all areas of Idaho, but the most significant drop was in metropolitan Boise. The loss of construction and high-tech jobs in the last year has had a major impact, the state Department of Labor said. There were nearly 9,000 fewer construction and manufacturing jobs around the state than in June 2007, more than enough to offset modest growth in the service sector.

  Although some sectors like health care reported job growth from May, it was not enough to meet the demand of people seeking work. Idaho had fractionally fewer nonfarm jobs in June, the second month nonfarm jobs have slipped below the year-earlier level. The last time that happened was during the fallout from the 2001 national recession. 

  The number of available seasonal jobs decreased as employers limited hiring because of uncertainty over customer demand. Tourist-related industries that normally see a significant increase in summer jobs only showed modest gains, meaning fewer jobs for students. Only small growth from May occurred in retail trade.

  One Idaho county had an unemployment rate in excess of 6 percent, and seven counties had unemployment rates between 5 percent and 6 percent. Clearwater County’s June rate was 6.4 percent. Boundary County came in at 5.9 percent.

  Unemployment rates below 3 percent were posted in 15 counties. Only one county experienced an unemployment rate below 2 percent —Teton at 1.3 percent.