Nearly 5,600 Idaho workers lost their jobs last month, sending the forecasted seasonally adjusted unemployment rate for May to 7.8 percent – a 22-year high. Preliminary estimates found 38,000 fewer jobs across the state than in May 2008, a 5.8 percent decline.
May’s record increases in both the number of unemployed and the rate pushed total unemployment to 58,300. An average of 44,000 workers a week collected a total of $51.5 million in state and federal unemployment benefits during the month.
Manufacturing, wholesale trade and financial and other services all reduced payrolls from April to May to drive total employment to just 692,000, the lowest level since May 2005.
While there were seasonal job gains from April to May in other sectors, the increase in construction payrolls was the lowest since 1990, and manufacturing jobs at just over 56,000 were at their lowest level since spring 1992.
Nationally, the unemployment rate rose a half percentage point to a quarter century-high of 9.4 percent, but the loss of 345,000 jobs in May was the smallest monthly decline since September and more than 100,000 below expectations.
Although Idaho’s rate has been below the national rate for over 7½ years, May was the first month since last September that the monthly increase in Idaho was greater than the national increase.
Almost 27,000 fewer workers had jobs in May of this year than in 2008, when the unemployment rate was still just below 4.5 percent.
The Boise metropolitan area unemployment rate increased 1.2 percentage points in May to 9.6 percent, exceeding the national rate and nearly double the 4.9 percent rate posted just a year ago.
All 44 counties saw the number of jobless workers increase from a year ago, and nine recorded double-digit percentage unemployment rates. Joining Adams, Benewah, Boundary, Clearwater, Shoshone and Valley were Canyon, Gem and Payette counties. Clearwater County recorded the highest rate in May at 12.3 percent. Custer County had the lowest rate at 3.2 percent, and Owyhee and Clark counties were the only others below 4 percent.
A year ago no county had a double-digit rate, and 23 had rates below 4 percent.
The rapid escalation in unemployment has intensified the pressure on the state’s Unemployment Insurance Trust Fund. In just the first 23 weeks of 2009, the fund has paid out $227 million to jobless workers. Less than $210 million was paid out in all of 2008, and that was a record at the time.
In addition, another $77 million has been paid to workers in extended federal benefits, pushing total benefit payments through this week to $303 million – money that helps workers and their families pay their mortgages and rent, buy food, clothing and other essentials and to help keep the businesses in communities throughout the state operating.
Despite a 70 percent increase in unemployment insurance tax rates paid by employers this year, the trust fund will go broke, forcing the state to take advantage of interest-free federal loans to keep paying benefits. Because of the drain on the fund, employer tax rates will increase substantially again in 2010 and maximum worker benefits will decline, although the amounts will not be determined until late fall.
Seasonally Adjusted Forecast Data
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5/09
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4/09
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5/08
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Civilian Labor Force
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750,300
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752,900
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Unemployment
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58,300
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|
34,100
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% Labor Force Unemployed
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7.8
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7.0
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4.5
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Total Employment
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692,000
|
697,500
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718,800
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Unadjusted Forecast Data
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Civilian Labor Force
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748,100
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752,900
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Unemployment
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54,000
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29,600
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% Labor Force Unemployed
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7.2
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3.9
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Total Employment
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694,100
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723,300
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