banner
Business

Jobless rates rise in all U.S. metro areas in May

Posted June 30, 2009

— Unemployment rates rose in all the largest U.S. metropolitan areas in May for the fifth straight month, and are likely to keep marching higher this year, a potential obstacle to a hoped-for economic recovery.

The Labor Department said Tuesday that jobless rates in May rose from a year earlier in all 372 metropolitan area it tracks.

In Raleigh-Cary, unemployment increased to 8.9 percent in May from 4.6 percent a year ago and 8.3 percent in April.

Joblessness in Durham-Chapel Hill climbed to 8.1 percent from 7.3 percent in April and nearly double the 4.6 percent rate of a year ago.

Fayetteville’s jobless rate hit 9.2 percent in May, up from 5.9 percent for the same month in 2008 and up from 8.4 percent in April.

In Rocky Mount, the May jobless rate rose to 14.2 percent from 8.1 percent last May and 8.1 percent in 2008.

Goldsboro’s jobless rate jumped to 9.2 percent from 5.6 percent last May and from 8.7 percent in April.

In Burlington, unemployment increased slightly to 12.2 percent in May from 12 percent in April but is more than double the 5.8 percent of May 2008.

The unemployment rate in Kokomo, Ind., jumped to 18.8 percent, up 11.7 percentage points from a year ago, the largest increase of all metro areas. The second-highest increase occurred in Indiana's Elkhart-Goshen, where the rate rose to 17.5 percent. That's up 11.4 percentage points from a year earlier.

Both parts of Indiana have been slammed by layoffs in transportation equipment manufacturing. Elkhart-Goshen has suffered layoffs at RV makers Monaco Coach Corp., Keystone RV Co. and Pilgrim International.

The other metro areas posting large gains were: Bend, Ore., where the jobless rate rose to 15.2 percent, an increase of 8.8 percentage points; and North Carolina's Hickory-Lenoir-Morganton saw its unemployment rate rise to 15.4 percent, a gain of 8.5 percentage points.

A common thread running through most of the regions that have been hard hit is the loss of manufacturing jobs. The collapse of the housing market has especially hurt jobs at factories that produce building materials and household goods, such as carpets, flooring, appliances and furniture. In addition, the global recession has cut into demand from customers both at home and abroad for a wide range of goods.

El Centro, Calif., again posted the highest unemployment rate in the country - 26.8 percent. Unemployment there is notoriously high because of many seasonal farm workers without jobs. Following behind were: Yuma, Ariz., with a jobless rate of 23.3 percent; and Kokomo at 18.8 percent.

The U.S. unemployment rate climbed to a quarter-century high of 9.4 percent in May.

Many economists predict it will rose to 9.6 percent in June. The government releases the new national employment report on Thursday. If they are right, it would mark the highest jobless rate since 10.1 percent in June 1983, when the country was trying to recover from a severe recession.

The U.S. unemployment rate is expected to hit 10 percent by the end of this year. It could rise as high as 11 percent by the next summer before it starts to decline. The highest rate since World War II was 10.8 percent at the end of 1982.

On the metro front, the news wasn't much better when comparing jobless rates in May to April. The figures aren't seasonally adjusted, so making monthly comparisons can be more volatile.

The unemployment rates rose in 46 of the largest 49 metro areas. Two of the rates showed no change - in Denver and Minneapolis. But only one - in Buffalo-Niagara Falls - showed a decline, dipping to 8.3 percent from 8.5 percent.

Among the bright spots was Bismarck, N.D., which registered May's lowest jobless rate of 3.5 percent. North Dakota has been helped by the oil business. Bismarck was followed by Iowa City, Iowa, home of the University of Iowa, with an unemployment rate of 3.7 percent, and Ames, Iowa, at 3.8 percent.

9 Comments

This story is closed for comments.

Oldest First
View all
  • prn13norm Jun 30, 2009

    It is Obama's intent to destroy the American economy. He pals with and defends Marxist regimes,defends Muslim terrorist organizations while chastising Israel, rushes to take over the banking and even the auto industries, fires CEO's and establishes a Czar to oversea corporate salaries, supports and creates every bill that penalizes business and industry.
    To all minorities who supported Obama, have you looked at the increased rate of unemployment for minorities? The increase is staggering. Ask yourself "Are you better off now than January 20, 2009?

  • affirmativediversity Jun 30, 2009

    wildervb:

    Why don't you just give us a date when GW Bush stops being President and OBAMA TAKES ON THE JOB!

  • affirmativediversity Jun 30, 2009

    wildervb:

    The only problem with your post is OBAMA PROMISED TO FIX IT QUICKLY...that was the reason HE PUSHED A 787 BILLION SPENDFEST!

    I certainly remember ALL THE "DO IT NOW. BEFORE YOU READ IT" rhetoric!

    THIS IS NOT GW Bush's "recession" THIS IS OBAMA'S DEPRESSION!

    HOPE/CHANGE?????

  • Winston Jun 30, 2009

    Anyone who doesn't thinks better economic decisions could have been made the last 6 months is a fool.

  • wildervb Jun 30, 2009

    The Bush recession is still in full swing, it'll take a few years to dig out of the hole dug over the last 8 years. Anyone who thinks Obama or anyone can turn this economy around in 6 months is a fool.

  • Weaker Pelosi Jun 30, 2009

    We are in deep doo doo folks

  • SubsidizedHousingOwner Jun 30, 2009

    Good job Obama voters!!!

  • Pseudonym Jun 30, 2009

    Looking forward to 1/20/2013

  • affirmativediversity Jun 30, 2009

    While Obama Inc has Luau's in the Rose Garden and flies to NY for an evening on the town...more and more people LOSE THEIR JOBS!

    And what is the reaction to this Jimmy Carter era unemployment...CONGRESS WITH OBAMA'S HEARTFELT SUPPORT PASSES THE BIGGEST TAX BILL EVER!!!!

    AND...HAVE ANMENSTY FOR CRIMINAL MIGRANTS ON DECK...I guess so those millions can "legally" compete for the jobs that are left...

    OHHH...lets not forget...SCREWING UP OUR HEALTHCARE SYSTEM...because EVERYTHING ELSE OBAMA INC has TOUCHED HAS TURNED TO GARBAGE!

    2010 can't come fast enough!