Unemployment rates rose in 27 states last month; Missouri among states that saw rates decline

WASHINGTON -- Unemployment rates rose in 27 U.S. states last month, the most in almost a year and a reflection of weaker hiring nationwide.

The Labor Department said Friday that unemployment rates fell in 11 states, including Missouri, and in Washington, D.C. -- the fewest since August. Rates were unchanged in 12 states.

Missouri's June unemployment rate was down slightly from May's, falling from 7.3 percent to 7.1 percent. That's down almost a full percent from 8.7 percent in June 2011. However, one factor contributing to lower unemployment rates is the number of people who have simply stopped looking for work. Missouri's labor force had 22,599 fewer people in May than it started the year with, according to the Missouri Economic Research and Information Center. To be counted as unemployed, a person must be actively looking for work.

Cape Girardeau County's unemployment rate was lower than the state average in May, the most recent month for which local numbers are available, at 6.2 percent. Cape Girardeau County was up three-tenths of a percent from April's. May's unemployment rates were higher than April's in several Southeast Missouri counties but still lower compared to one year ago:

* Scott County, up three-tenths of a percent from April at 6.2 percent;

* Perry County, up three-tenths of a percent from April at 5.1 percent;

* Bollinger County, up two-tenths of a percent from April at 6.9 percent;

* Stoddard County, up two tenths of a percent from April at 7.6 percent.

Nationwide, employers added only 80,000 jobs last month, the third straight month of weak job growth. The national unemployment rate stayed at 8.2 percent.

Still, 29 states added jobs in June, up from 27 in May. Unemployment rates can rise even if more jobs are created if more of those out of work start looking for jobs. The number of Americans searching for jobs nationwide increased last month.

Nevada recorded the highest unemployment rate, at 11.6 percent, the same as the previous month. It was followed by Rhode Island at 10.9 percent and California at 10.7 percent.

North Dakota had the lowest unemployment rate at 2.9 percent. It's followed by Nebraska at 3.8 percent.

Several states reported big increases in unemployment. Rates rose 0.4 percentage points in Alabama and New Jersey, to 7.8 percent and 9.6 percent, respectively.

Some states kept hiring at a healthy pace in June. California added 38,300 jobs and Ohio added 18,400, after similar gains in both states in May. And North Carolina rebounded after losing jobs in May, adding 16,900 jobs last month.

Still others lost jobs. Wisconsin shed 13,200 positions, the most of any state. It was followed by Tennessee, where employers cut 12,100 jobs.

The economy is struggling to generate enough growth to boost hiring and consumer spending from subpar levels.

Job growth slowed to 75,000 a month from April through June, down from healthy 226,000 pace in the first three months of the year. Unemployment is stuck at 8.2 percent.

On Wednesday, a survey by the Fed said hiring was "tepid" in most of its districts in June and early July. And manufacturing weakened in most regions.

Retail sales fell in June for the third straight month, the government said this week. That led many economists to downgrade their estimates for growth in the April-June quarter. Many think it will be even slower than the first quarter's scant 1.9 percent annual pace.

Southeast Missourian business editor Melissa Miller contributed to this report.