Idaho unemployment rises to 5 percent

Idaho employers reduced jobs from August to September for the first time in over 30 years, accelerating the increase in the state’s seasonally adjusted unemployment rate four-tenths of a point to 5 percent.

Unemployment in the state stood at 5 percent in September compared to 4.6 percent in August and 2.7 percent in September 2007.

Idaho Department of Labor officials said in a release that the unemployment rate increase from August to September was the third largest one-month jump this year – following half-point increases in both May and August – and the highest rate since January 2004.

Since January, the jobless rate has risen more than two full percentage points.

Over the last three decades, the jobless rate has climbed from August to September only six times other than 2008 – 1978, 1981, 1982, 1985, 1990 and 2001. Four were recession years.

Job losses were recorded across almost every sector of the Idaho economy in September, further aggravating the decline in jobs since the economy began to slow down a year ago, the Department of Labor said. It was the second straight month the Idaho economy failed to produce the normal increase in jobs, and employers hired fewer people in September than in any year since 2002 during the fallout from the last national recession.

Just fewer than 721,600 people were working in September, 15,400 fewer than a year ago, and the decline was felt statewide. Every county saw the number of jobless workers rise from September 2007. Only 14 counties recorded increased employment over the year, and that growth was small.

The worsening economic picture apparently convinced thousands of people who had dropped out of the state’s labor force earlier this year to begin looking for work again, the Idaho Department of Labor said. But of the 4,200 new entrants into the workforce, only 900 found jobs. That pushed the number of people out of work to nearly 37,800, the highest monthly unemployed total since January 1986 in the midst of what was one of the worst recessionary periods Idaho has faced.

Of the 17,600 fewer people working this September compared to September 2007, 44 percent, or more than 7,700, were in the Boise metropolitan area that includes Ada, Canyon, Boise, Gem and Owyhee counties.

The number of workers without jobs has increased every month this year.

During September, Idaho paid an average of $2.6 million a week in unemployment benefits. That was $1 million a week more than in 2007, a 60 percent increase, the Department of Labor said.

The national unemployment rate remained unchanged at 6.1 percent, up from 4.7 percent in September 2007. The labor force declined by a tenth of a percentage point, possibly a sign of more people becoming discouraged about employment prospects.

Despite the spike in Idaho’s rate since late winter, September was the 84th month it has been below the national rate.

September’s job loss was muted by the resumption of school and return of employees and students. An increase of 7,000 public education jobs almost totally offset the loss of nearly 8,000 jobs in the private sector.

Goods production shed about 1,700, mainly in construction, while the service sector dropped 6,000. Even areas where seasonal declines were expected like retail and food service posted losses two or three times higher than normal.

Overall, Idaho’s economy had 658,500 jobs in September, 9,000 fewer than a year earlier.

Clearwater County had the highest unemployment rate at 9.5 percent. This is the first time a county has posted a rate above 9 percent since March 2007 when Clearwater was at 9.9 percent. Adams County came in at 9.2 percent. Three other counties reported rates over 8 percent – Benewah and Valley at 8.4 percent and Boundary at 8.3 percent. All five counties are rural and dependent on natural resources.

Only three counties recorded unemployment rates at or below 3 percent. Owyhee County was at 3 percent, Madison at 2.7 percent and Franklin at 2.5 percent, the Idaho Department of Labor said.