Unemployment up nationally, down locally

Ask Arthur G. Headrick of Neelys Landing how his job search is going, and he answers with one word.

"Horribly," the 28-year-old unemployed welder said Tuesday as he left the Missouri Career Center in Cape Girardeau.

"After five months of looking, it's getting hard to find jobs that I haven't already applied for," he said.

He's not alone in his frustration. Employers in May added the fewest jobs in eight months and the nation's unemployment rate inched up one-tenth of a percentage point to 9.1 percent.

The average unemployed person in May had been out of work for 39.7 weeks. That's the longest average length of time since the U.S. Labor Department began keeping records in 1948.

"It just seems like you've got to fight for everything," Headrick said. While he continues to look for work, he's also going back to school in hopes that will improve his chances of landing a job.

Despite higher national unemployment, local unemployment rates have been declining steadily in 2011. Since peaking at 8.2 percent in January, the Cape Girardeau County unemployment rate has dropped to 6.8 percent in April, according to the Missouri Economic Research and Information Center. May figures for states and counties won't be released until June 16.

Neighboring counties are also seeing similar declines. Perry County unemployment went from 7 percent in January to 5.7 percent in April; Bollinger County went from 10.6 percent in January to 8.6 in April; and Scott County went from 10.2 percent in January to 8.3 percent in April.

It's typical in Southeast Missouri for unemployment numbers to drop this time of year, said Bruce Domazlicky, director of the Center for Economic and Business Research at Southeast Missouri State University.

"This reflects the pickup of economic activity in certain sectors, construction and retailing, so the decline in unemployment rates in April is fairly typical," he said.

While corporate profits are on the rise nationwide, that hasn't yet translated into more jobs.

"Corporations are sitting on a lot of cash right now," Domazlicky said. "The uncertain economic situation is probably the main reason for slow hiring by corporations. The economic recovery has not been very smooth, with even a few economists now worried about a double-dip recession."

He doesn't believe that is likely, but the lack of a sustained recovery makes corporations wary about committing to significant additions.

Cape Girardeau Chamber of Commerce president and CEO John Mehner said he's seeing evidence local companies do have more overall confidence in the economy.

"That's especially apparent with some of our larger employers who have done some expanding, some others that are looking at doing some expanding, and our health care sector that never stopped expanding," Mehner said.

The most recent example, Nordenia USA's announcement last week of a $22 million expansion in a Jackson industrial park, is expected to initially create 50 jobs.

'More positives'

As evidence that retailers are recovering, sales tax revenue in the city and county has increased steadily in recent months, Mehner said.

"There are more positives than negatives out there right now," he said.

But Mehner still has concerns about the effect of gas prices, which remain about $1 per gallon higher than this time last year.

"They're going down, but they still affect people's disposable income and have a huge negative impact on companies in the distribution line of work. It's just a crusher for those businesses," Mehner said.

Mehner also wonders about the effect flooding in counties south of Cape Girardeau will have on retailers here.

"We are a major shopping area for all of those people. We don't yet know the impact of federal aid or how they're going to come out with their crops. We'll have to see how that relates out in the next six months," Mehner said.

So far, 167 people in Southeast Missouri have filed for Disaster Unemployment Assistance from the Missouri Department of Labor. That total includes 89 people in Mississippi County alone, according to Amy Susan, director of communications for the Missouri Department of Labor. Applicants in Southeast Missouri counties which received a federal disaster declaration have until July 1 to file for disaster unemployment assistance. To qualify, their job loss must have been a direct result of flooding.

mmiller@semissourian.com

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1737 N. Kingshighway Cape Girardeau, Mo.