News

Unemployment rate up despite job gains

Published: Wednesday, July 7, 2010 1:39 PM CDT
Mon, 05/31/2010 - 01:45

By Robert Carreira

According to figures released by the Arizona Department of Commerce, Cochise County gained 150 jobs in April.

In the 12 months ending in April, Cochise County lost 350 jobs for job growth of -0.9 percent.

Although jobs declined year-over-year in April, the decline was the mildest since January 2008, the first month Cochise County began losing jobs in the current downturn.

Despite the job gains in April, Cochise County's unemployment rate increased from 7.9 to 8.0 percent but remained the lowest of Arizona's 15 counties by a wide margin.

Pima and Maricopa counties were tied for second at 8.8 percent. The statewide unemployment rate in April decreased from 9.6 to 9.5 percent.

Nationally, the unemployment rate increased from 9.7 to 9.9 percent.

According to ADOC estimates, adjusted for seasonality by the Cochise College Center for Economic Research, city-level unemployment rates for April were: Benson, 14 percent; Bisbee, 8.8 percent; Douglas, 12.2 percent; Huachuca City, 11.5 percent; Sierra Vista, 4.8 percent; Tombstone, 5.4 percent; and Willcox, 12.1 percent.

ADOC unemployment estimates for the individual cities in Cochise County are based on a model that pegs city unemployment to county-level unemployment based on data from Census 2000.

The model does not pick up changes at the city level since 2000 that differ from county-level trends. CER focus group discussions throughout the county indicate a likely overestimation of unemployment in Benson and Douglas due to the opening of the Wal-Mart Supercenter and ACT Call Center, respectively, in those cities.

Sierra Vista's unemployment rate is likely underestimated as indicated by comparison to recent American Community Survey data published by the U.S. Census Bureau.

Cochise County's private sector gained 75 jobs in April. Since April 2009, the county has lost 375 private-sector jobs, for job growth of -1.5 percent.

Within the private sector, the number of goods-producing jobs, which include manufacturing and construction jobs, increased by 25 in April. All of the job gains were in construction.

Manufacturing jobs stabilized at March levels in April. Since April 2009, the county's goods-producing subsector has lost 75 jobs for a 12-month job-growth rate of -3.5 percent.

The county's construction industry lost 50 jobs in the 12 months ending in April, for job growth of -3.3 percent. Manufacturing lost 25 jobs over the same period for job growth of -4.0 percent.

The county's private service-providing subsector gained 50 jobs in April. Within this subsector, trade, transportation, and utilities gained 75 jobs and leisure and hospitality gained 50 jobs. Educational and health services lost 50 jobs and financial activities lost 25 jobs. The industry groupings of professional and business services, information, and other services each stabilized at March levels in April.

In the 12 months ending in April, Cochise County's private service-providing subsector lost 300 jobs, for 12-month job growth of -1.3 percent. Professional and business services lost 250 jobs, for job growth of -4.3 percent. Leisure and hospitality lost 175 jobs, for job growth of -4.3 percent. Other services lost 50 jobs, for job growth of -5.6 percent. Information lost 25 jobs, for job growth of -3.8 percent. Trade, transportation, and utilities gained 100 jobs, for job growth of 1.6 percent. Educational and health services also gained 100 jobs, for job growth of 2.3 percent. Financial activities jobs stabilized in the 12 months ending in April.

April saw a gain of 75 government jobs in Cochise County, all of which were federal government jobs. In the 12 months ending in April, government jobs in Cochise County increased by 25, for a 12-month job-growth rate of 0.2 percent. This reflects a gain of 200 federal government jobs for a 12-month job growth rate of 3.9 percent, mostly offset by the loss of 175 state and local government jobs for job growth of -2.4 percent. Non-farm job data for Cochise County does not include active duty military, but does include Fort Huachuca's civilian workers and defense contractors.

ROBERT CARREIRA, Ph.D., is director of the Center for Economic Research at Cochise College. The Web site is www.cochise.edu/cer



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