Unemployment rate slightly increases in May
Franklin County’s unemployment rate rose in May to 9.5 percent, up from April’s reported rate of 9.1 percent.
Officials said the statewide trend that led to Alabama’s increase from 9.3 percent to 9.6 percent was due in part to the tornadoes that decimated the state on April 27.
Due to the method in which the unemployment rate is calculated, the effects of the storms on unemployment weren’t included in April’s rate, but rather are reflected in the May rate. To date, over 6,400 storm-related unemployment claims have been received by the Alabama Department of Industrial Relations.
Franklin County’s jobless claims increased by 45 people.
Another factor is the national unemployment rate. The national rate has increased for the past two months, from 8.8 percent in March to 9 percent in April to 9.1 percent in May.
The final factor is that May is historically a month when the labor force increases. There are additions to the labor force due to college and high school graduations as well as schools letting out for the summer. Also, some recent positive economic indicators have led many people who had given up looking for work to re-enter the job market.
“While we are disappointed to report an increase of three-tenths of a point in our unemployment rate, we have to keep the big picture in mind,” said Alabama Department of Industrial Relations Director Tom Surtees.
“We knew that the devastating storms we suffered in April were going to have an impact on unemployment. This is something that we could not have foreseen. I’m not going to go so far as to say that the entire increase can be attributed to the storms, but they’re certainly a major factor.
“Also, Alabama is part of a national economy. As I mentioned last month, national trends will impact state economies. We are simply one of the smaller pieces that make up the whole. Then, when you add in recent graduates who are entering the market for the first time and formerly discouraged workers who are re-entering the workforce, you simply create more demand for the same number of jobs,” Surtees said.
A recently published study by the Alabama Center for Business and Economic Research indicates that the April 27 tornadoes “will initially reduce….employment by about 5,600 – 13,200 jobs or 0.2 – 0.5 percent.”
The study goes on to further say that recovery activities will eventually create up to 51,700 jobs in the short term.
The counties with the lowest unemployment rates were Shelby County at 6.9 percent, Coffee County at 7.3 percent, and Pike County and Madison County at 7.9 percent. The counties with the highest unemployment rates were Wilcox County at 21.7 percent, Perry County at 17.3 percent and Monroe County at 16.3 percent.
In northwest Alabama Lauderdale County is at 8.3 percent, Colbert County is at 8.8 percent, Lawrence is at 10.5 percent, Marion at 11.9 percent and Winston is at 13.9 percent.
