Better Unemployment News

June 20, 2010

For the second month in a row, the jobless rate in the North Escambia area and the entire state was down.

Escambia County saw a slight in unemployment — down from 11.7 percent in April to 10.3 percent in May. That represented 604 unemployed people headed back to work in a month.

Santa Rosa County also recorded a slight drop in unemployment — falling from 9.4 percent in April to 9.2 in May. Santa Rosa County gained 308 jobs during the period.

The unemployment rate in Escambia County, Ala., dropped a full percentage point from 12.3 percent to 11.3 percent — a gain of 154 jobs.

Florida’s May unemployment rate dipped to 11.7 percent, only the second time state jobless levels have dropped in more than four years and a sign some say shows the economy is turning around.

The May rate was 0.3 percentage points lower than a revised 12.0 percent figure for April, but still remained higher than the 9.4 percent revised figure for May 2009. The state figure remains above the national average, which fell 0.2 percentage point in May from the previous month to 9.7 percent.

Alabama’s seasonally adjusted unemployment rate, at 10.8 percent in May,declined from April’s rate of 11 percent but was above the year-ago rate of 10 percent.

At least one economist says the monthly unemployment drop may not mark signs of a real economic rebound. More sustained improvement will be needed to gauge whether the easing unemployment will continue or if it’s the result of a short-term surge fueled by Census hiring.

“Those Census jobs are going to go away in a few months, and it’s ultimately going to be up to the private sector to drive job creation,” said Sean Snaith, director of the University of Central Florida’s Institute for Economic Competitiveness. “So far, we’re not seeing any indication that private growth has gotten underway.”

Democratic gubernatorial candidate Alex Sink says the ongoing pressure put on by the BP oil spill may further slow economic recovery. The disaster is costing jobs in Gulf coast fishing communities, along with hotels and restaurants that are a critical part of the state’s $60 billion a year tourist industry.

“Today we learned Florida’s unemployment rate fell for the second consecutive month — and while this is encouraging, there are still unfortunately over one million Floridians who are unable to find work,” Sink said in a statement. “The disastrous BP oil spill threatens our economy even further at a time when many are already struggling, seemingly with no end in sight.”

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Written by William Reynolds · Filed Under News