Wednesday, December 10, 2008

Unemployment surges in Blaine County

5 percent still below national average


By JON DUVAL
Express Staff Writer

A report from the Idaho Department of Labor indicates that the unemployment rate in Blaine County jumped to 5 percent in November, compared to 2.2 percent for the same month last year.

The same trend was seen across the state, where the recession has left a record 44,100 workers without jobs, sending the seasonally adjusted unemployment rate to a 15-year high.

That's largely a result of the loss of more than 8,700 private-sector jobs during the month, the Idaho Department of Labor stated Friday.

Of Blaine County's 14,128 civilian labor force, an estimated 701 were unemployed in November. In November 2007, that figure was 308.

"Employment in recreational areas should pick up in December and January if there is adequate snowfall, increasing activity at winter resorts," the department news release states.

Statewide, the November unemployment rate jumped half a percentage point from October to 5.8 percent, 3.1 percentage points higher than in November 2007. It was the largest rate increase from October to November on record, and only the seventh time in 30 years that there has been an October-to-November increase.

In Blaine County, October's unemployment rate was at 4.7 percent. Idaho Department of Labor spokesman Bob Fick said the last time unemployment reached over 5 percent in Blaine County was in 2003.

However, the county and the rest of the state continue to fare better than the national average, for which the unemployment rate rose two-tenths of a point, to 6.7 percent, after businesses eliminated 533,000 jobs.

Jan Roeser, regional labor economist for the Idaho Department of Labor, said the lack of snow, the recent Whiskey Jacques' fire and the general economic downturn have all combined to increase unemployment in Blaine County.

"It's definitely not as bad as the early '80s," Roeser said. "Hopefully some snow and the new administration can help turn this around."

Roeser said 5 percent unemployment was actually "not all that bad," explaining that the extremely low unemployment rates over the past two years created difficult situations for employers looking for qualified workers.

But Roeser tempered her optimism by noting that the economic downturn has extensive implications for a tourist-based economy, from people not traveling over the holidays to second-home owners not hiring workers to string Christmas lights and shovel driveways.

"Consumers are holding their breath and waiting," Roeser said. "Likewise, I think employers are waiting to see what happens, and this could mean holding off on new hires until spring."

Roeser said that while the current economic situation is painful, it will hopefully bring about a necessary correction, especially in Ketchum where there was a big real estate bubble.

As well, Roeser said this is the time for opportunities and innovative solutions that will help create more efficient businesses when the cycle turns around.




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