State Unemployment Rates Slow

The number of states reporting increased unemployment declined in January, with the majority reporting a net increase in jobs, according to figures released today by the Labor Department.

A total of 31 states reported increased monthly unemployment rates in January, compared to 43 in December. At the same time, nonfarm payroll employment increased in 31 states and the District of Columbia over the previous month. Payroll gains do not translate directly to reduced unemployment due to growth of the labor force.
 
The national unemployment rate fell 0.3 percentage points in January, as the Labor Department previously reported, to 9.7 percent of the workforce. The rate represents an annual gain of 2.0 percentage points, up from 7.7 percent in January 2009.
 
The largest monthly gains in total employment were posted by California (up 32,500), Illinois (up 26,000) and New York (up 25,500). Eighteen states reported monthly declines in total employment, with the biggest decreases posted by Missouri and Ohio (down 12,800 each) and Kentucky (down 11,800).
 
Washington, D.C. posted the biggest monthly percentage increase in employment, up a full percentage point, followed by Alaska (up 0.9 percent) and Washington state (up 0.7 percent). The biggest decreases were reported by Kentucky (down 0.7 percent) and Missouri and Nevada (each down 0.5 percent).
 
Michigan continued to have the nation’s highest unemployment rate, at 14.3 percent, although improving slightly from 14.5 percent in December. The next highest rates were posted by Nevada (13.0 percent), Rhode Island (12.7 percent), South Carolina (12.6 percent) and California (12.5 percent).
 
The nation’s lowest unemployment rate was in North Dakota (4.2 percent), followed by Nebraska (4.6 percent) and South Dakota (4.8 percent).

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