Unemployment up in Idaho

Idaho’s seasonally adjusted unemployment rose two-tenths of a percentage point in June to 6.4 percent, despite strong growth in nonfarm jobs.

Boundary County unemployment increased more than one percent to 7.7 percent in June from 6.6 percent in May.

It was the second straight month unemployment was up following 21 months during which the rate steadily fell more than two full percentage points.

The number of workers off the job increased nearly 1,900 to over 49,000, the highest total since last November. The number of employed dropped 400 to under 724,000, the lowest level since last October. The surge in total unemployment in part reflected an increase of more than 1,400 people entering the labor force in June and looking for jobs.

It was the second month in a row that the labor force has expanded, but the total at under 773,300 is only 200 higher than in June 2012 despite the addition of 18,000 jobs during the intervening 12 months.

Overall, Idaho’s nonfarm jobs estimated at 646,500 were 2.8 percent ahead of June 2012. Total employment includes not only workers who hold down those nonfarm job but also tens of thousands who are self-employed.

The essentially flat employment and labor force statistics over the past eight to 10 months in the face of year-over-year job growth exceeding the national expansion may indicate continued caution among Idaho businesses about the future of the economy.

While Idaho jobs increased 2.3 percent in the past year compared to 1.6 percent nationally, the Current Population Survey found an average of 170,000 of Idaho’s employed workers held part-time jobs – 23 percent of total employment – during the 12 months through June. The survey also found that more than 33,000 workers had those part-time jobs because they could not find full-time work. In addition an average of 43,000 workers, over 6 percent of total employment, were working more than one job.

Part-time employment was under 18 percent of total employment in the summer of 2007, but it rose significantly during the Great Recession and continued rising after the recession ended before peaking at 25 percent for the 12 month ending last January. It has been dropping since then, but the number of involuntary part-time workers in June was more than three times the number during the final year of the expansion six years ago and has exceeded 30,000 since late 2009.

Idaho was one of 21 states that saw their unemployment rates rise even as jobs increase from May to June. Two other states, West Virginia and Hawaii, saw their jobless rates fall at the same time jobs declined.

While Idaho’s jobless rate rose two-tenths of a percentage point, the national rate remained unchanged in June at 7.6 percent. Even with the increase, Idaho’s rate has been below the national rate for 141 months, nearly 12 years.

Even with the higher unemployment rate, there were still 6,800 more people working this June than a year earlier and 6,700 fewer without jobs.

The unemployment rate in June of 2012 in Boundary County was 10.4 percent, meaning 160 people more people are working this June.

Only 13 counties had rates under 6 percent, led by Franklin and Oneida counties at 4.3 percent. Twenty counties had rates under 6 percent in May.