Payrolls Rose in 41 U.S. States on Government Hiring (Update2)
By Shobhana Chandra
June 18 (Bloomberg) -- Payrolls increased in 41 U.S. states in May, led by a surge in government hiring that probably reflected temporary workers to conduct the decennial census.
Excluding government agencies, employment would have dropped in three of the five states showing the biggest gains in payrolls, including California, Florida and New York. Hiring in Texas, where a 43,600 increase in jobs led all states, was paced by gains in professional and business services, tourism and manufacturing.
The government took on 411,000 employees for the 2010 census, propelling payrolls up by 431,000 last month nationally, according to Labor Department figures issued earlier this month. Private payrolls rose a less-than-forecast 41,000, and the jobless rate dropped to 9.7 percent from 9.9 percent as discouraged jobseekers left the labor force.
“The bulk of the employment growth in May was because of the census, but it comes after very strong data for April,” said Jim O’Sullivan, chief economist at MF Global Ltd. in New York. “The momentum has been positive. Employment growth is key to a self-sustaining recovery.”
Unemployment decreased in 37 states in May, led by declines of 0.5 percentage-point in North and South Carolina, and 0.4 percentage-point in Illinois and Michigan. It was the first time since April 2006 that Michigan, with a jobless rate of 13.6 percent, didn’t top the unemployment rankings.
Automaker Hiring
Automaker Chrysler Group LLC, controlled by Fiat SpA and based in Auburn Hills, Michigan, said in May that it will hire 1,100 workers at a Detroit factory that produces Jeep Grand Cherokees and add a second shift. The rebound
The jobless rate in Nevada climbed to 14 percent in May, the highest since records began in 1976, from 13.7 percent the prior month, surpassing Michigan as the state with the most unemployment in the U.S. The states with the next-highest rates of unemployment after Nevada and Michigan were California, at 12.4 percent, and Rhode Island, at 12.3 percent.
California’s payrolls increased by 28,300 as government hiring surged by 30,000. Employment in Florida grew by 20,300 as the government took on 32,100, and jobs in New York climbed by 21,000, thanks to a 30,500 gain at government agencies.
Virginia rounded out the top five states with the biggest employment gains, showing a 20,300 increase. Almost half, 9,300, was attributed to government agencies. In Texas, government payrolls fell by 1,100.
New York
The jobless rate in New York declined to 8.3 percent, the lowest since April 2009. Unemployment in New York City fell to 9.6 percent last month, the fifth consecutive drop. The addition of 14,700 jobs brought the rate down from 9.8 percent in April.
Unemployment in New Jersey fell to a nine-month low of 9.7 percent in May, matching the nation’s jobless rate, from 9.8 percent in April. Connecticut’s unemployment rate decreased to 8.9 percent from 9 percent.
State and local employment data are derived independently from the national statistics, which are typically released on the first Friday of every month. The state figures are subject to larger sampling errors because they come from smaller surveys, making the national figures more reliable, according to the government’s Bureau of Labor Statistics.
Today’s report showed 16 states had unemployment of 10 percent or higher, the same as in April.
Elevated unemployment and sluggish consumer spending are reducing tax collections, worsening the revenue shortfalls for state governments. The budget deficits in turn may force municipalities to make their own staff reductions.
Newark, New Jersey’s largest city, plans to fire hundreds of workers and seek concessions from unionized employees to help close a $180 million budget deficit, Mayor Cory Booker said today.
No comments:
Post a Comment