Unemployment rates rose in more than half of US states; 26 added jobs in June
Friday, July 22, 2011
Unemployment rates rose in more than half of US states;
26 added jobs in June
By: Associated Press
WASHINGTON - Unemployment rates rose in more than half of U.S.
states in June, evidence that slower hiring is affecting many parts
of the country.
The Labor Department said Friday that unemployment rates in 28
states and Washington, D.C., increased last month. Rates declined
in eight states and were flat in 14. That's a change from May, when
24 states reported falling unemployment rates.
Twenty-six states reported a net gain in jobs in June, while 24
states lost jobs.
The changing trend in state unemployment rates reflects a weaker
economy hampered by high gas prices and lower factory output.
Nationally, employers added only 18,000 net jobs in June, the
second straight month of feeble hiring. The U.S. unemployment rate
ticked up to 9.2 percent.
The economy expanded only 1.9 percent in the January-March
period, and most economists expect similar growth in the April-June
quarter. The government releases its first estimate for
second-quarter growth on July 29.
Nevada had the highest unemployment rate among the states in
June, at 12.4 percent. That's up from 12.1 percent in May.
California had the second-highest rate, at 11.8 percent. It was
followed by Rhode Island (10.8 percent).
North Dakota reported the lowest unemployment rate, at 3.2
percent, followed by Nebraska and Montana, both at 4.1 percent.
Some companies are cutting their work forces. Layoffs rose to
their highest level in nine months in May, according to a separate
Labor Department report last week.
Analysts are expecting another weak month of hiring in July,
based on recent data.
Economists at Deutsche Bank cut their forecast for net job gains
in July to 50,000, from an earlier estimate of 100,000. Joshua
Dennerlein, an economist at Bank of America Merrill Lynch,
forecasts a gain of only 75,000 jobs.
The economy needs to generate about 125,000 jobs per month to
keep up with population growth and prevent the unemployment rate
from rising. It needs at least twice that many to rapidly reduce
unemployment.