County unemployment rises again
by Whit McGhee
Staff Writer
Sep 19, 2009 | 1591 views |  6 comments | 8 8 recommendations | email to a friend | print
Calhoun County's unemployment rate rose again in August, up to 10.8 percent, slightly higher than the state's rate of 10.7 percent.

The jobless figure represents 225,082 Alabamians statewide out of work. The unemployment rate held steady in June and July at 10.6 percent.

Calhoun County's rate rose last month even though the total number of jobless workers went down.

5,648 Calhoun County residents were out of work in August — 41 fewer from the previous month. However, the civilian labor force — the number of people working or looking for work — decreased by nearly 800.

Jacksonville State University finance professor Bill Scroggins said the decrease in the civilian labor force could be from "discouraged workers."

"In other words, unemployed people who have been searching for work but are unable to find work, therefore, they give up and are no longer counted," he said.

Scroggins also said the labor force may have shrunk partially from a reduction in seasonal summer jobs and minimum-wage jobs, often held by students returning to school in early August.

"The minimum wage also increased in July to $7.25 an hour. That hurt some small businesses," he said. "While it certainly benefits the workers, the net effect is frequently small businesses end up hiring fewer workers and laying off people."

Although some national economic indicators point to an improvement in consumer spending and confidence, Scroggins said a severe recession like the current one can sometimes result in a "jobless recovery."

"When rehiring begins, we expect it to be robust. Inventory levels have been drawn down, and businesses will rehire to ramp up production," he said, "but they're not going to rehire until they feel comfortable that the economy is transitioning into a recovery."

Clay County had a 15.6 percent unemployment rate for August — the highest in east Alabama. Randolph County followed with a 15.1 percent jobless rate. Cleburne County's jobless rate dropped from 10.4 percent to 9.9 percent; Talladega County reported a 13.9 percent unemployment rate.

Shelby and Madison counties recorded the lowest unemployment in the state in August, both with a 7.6 percent unemployment rate. Wilcox County continues to have the highest jobless rate, with 25.4 percent — 1 in 4 — of its residents out of work.
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