Region's unemployment rate down, but higher than national average

Recent data show the region's unemployment rate dipped in August and September --­ but not enough to bring its average below the U.S. average for the year.

The average unemployment rate in the country so far this year is 5.4 percent, according to data from the Missouri Economic Research and Information Center. Missouri's average is 5.7 percent, while Southeast Missouri's sits at 5.8 percent.

In September, however, all the region's counties ­­-- Cape Girardeau, Bollinger, Perry, St. Francois, Iron, Madison and Ste. Genevieve -- were sitting at their lowest rates so far in 2015.

John Mehner, president and CEO of the Cape Girardeau Area Chamber of Commerce and Cape Girardeau Area Magnet, said economists generally consider a 4 percent rate to be full employment. It is not necessary for that rate to reach zero, because it accounts for frictional unemployment, or people transitioning between jobs, as well as structural unemployment, which occurs when workers are not qualified for the available jobs, according to investopedia.com.

"There's a lot of belief out there that somewhere between 3.7 and 4.2 is functionally full employment," Mehner said.

Cape Girardeau County's unemployment rate was 4.7 percent in August and 4.1 percent in September. That's down from its highest point of 5.4 percent in June and July.

In Bollinger County, the numbers were slightly higher: 5.8 percent in August and 5 percent in September. The county's highest rate so far this year was 7.5 percent in March.

At 4.7 percent, Perry County had the lowest rate in the region. Unemployment in that county for August and September was 4.3 percent and 3.8 percent, respectively, down from a high of 5.3 percent in March.

Mehner said the unemployment rate is "a good barometer, but it's not ever perfectly accurate." The number includes people who are out of work and seeking employment.

Once a person stops looking for work, he or she no longer is considered "unemployed" for purposes of calculating the percentage.

"What we know is that our unemployment rate is lower, and there are some local companies that have expressed concerns about finding qualified employees," Mehner said.

He said that's happening nationwide, not just in Missouri.

The Associated Press reported last month the average number of people seeking unemployment aid in the U.S. in the past month fell to a 42-year low.

The Labor Department reported Oct. 29 weekly applications rose just 1,000 to a seasonally adjusted 260,000, a low level historically that suggests employers are cutting few jobs.

The four-week average, a less volatile measure, dropped 4,000 to 259,250, the fewest since December 1973.

The figures indicate businesses remain confident enough in the economy to hold onto their workers. Growth slowed in the July-September quarter, but that has not spurred widespread layoffs, although some large companies have announced job cuts.

Hiring is typically healthy when applications are low. Many economists expect job gains to rebound after slowing in August and September.

kwebster@semissourian.com

(573) 388-3646

The Associated Press contributed to this report.