State unemployment rate sees big drop in August

State unemployment rate sees big drop in August

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JEFFERSON CITY, Mo. -- Missouri's unemployment dropped a full percentage point to 4.6 percent in August -- the lowest rate the state has seen in four years, since before the terror attacks' impact on the economy.

The seasonally adjusted rate also fell below the national rate for the first time since April 2004, the state Economic Development Department said Monday. The national level was 4.9 percent in August.

"The state's labor market conditions have shown consistent improvements since January and these latest employment numbers indicate an economic resurgence that hasn't been seen in Missouri for years," Gov. Matt Blunt said in a statement.

Missouri also added 15,500 jobs last month, seasonally adjusted, with all major industries reporting improvement. Manufacturing led the way, adding 5,600 jobs, thanks to an end to some layoffs in the auto industry. Educational and health services grew by 2,900 jobs, and professional and business services added 2,600 jobs.

Since January, the state has added 53,900 jobs.

Economic officials said any effects Missouri's economy may experience because of Hurricane Katrina likely would start showing up in September data.

Officials also said August's unemployment drop was more than typical, indicating that people who generally give up searching for jobs at the end of summer may have done so a bit earlier this year, perhaps because schools started early.

On a not-seasonally-adjusted basis, nonfarm payrolls have grown by 33,100 jobs, or 1.2 percent, over the past year. Health care and social assistance industries grew by 7,700 jobs, while professional and business services added 6,100 jobs.