OK-Labor force growth outpacing job creation in Oklahoma
Author :  Bryan Smith 
Date :  08/04/2008

(OK) Even with increased employment, labor force growth for the month of June caused an increase in state unemployment rates, according to a recent state report.

According to a report released by the Oklahoma Employment Security Commission, statewide non-seasonally adjusted labor force, employment and unemployment all grew in the month of June.

When taking into account job growth and labor force increases, unemployment grew by 0.7 percent, reaching 4.2 percent. The report showed that unemployment outpaced job growth, increasing by 19.6 percent.

As in May, McCurtain County led the state with the highest overall unemployment at 7.3 percent. That number is up by 1 percent over the previous month.

Beaver and Woodward counties shared the lowest unemployment numbers at 2.5 percent.

Sequoyah County posted the greatest decrease with a drop of 0.7 percent to 5.4 for the month of June.

The Oklahoma City area saw an increase from 2.9 to 3.5 percent, while the Tulsa and Lawton areas increased from 2.9 to 3.5 percent and from 2.9 to 3.6 percent, respectively.

When compared to the rest of the country, jobless claims are fairly low. Federal unemployment increased to 5.7 percent during the month of June. According to July reports from the U.S. Department of Labor's Bureau of Labor Statistics, the increase comes from a loss of 51,000 jobs in nearly every sector of the economy.

Only two sectors, mining and health care, posted overall growth for June, while the construction, manufacturing and service sectors saw marked losses. The largest percentage increase came among teen-age workers, which increased to 20.3 percent. That number is closely related to high unemployment in the leisure and hospitality industry, which almost surpassed the 9 percent mark; the construction industry, which increased to over 8 percent; and the retail industry at 6.5 percent.

Also up were the number of individuals who have since given up on finding employment. When taken together with those claiming benefits and those working part time while seeking full-time employment, the number reaches 10.3 percent. According to the report, there are now 5.7 million part-time workers, up by 308,000.

The New York Times reported that along with cutting jobs, employers have also reduced wages and cut back on regular pay rate increases. Wage increases were reportedly outpaced by inflation in July, leaving an overall pay reduction. The unemployment increase and wage stagnation, the article said, resulted in part from increased productivity.

The increased jobless claims are a sign that the effects of the economic stimulus package have subsided, though the Wall Street Journal and others reported that lingering effects should continue at a lesser rate for some time to come.

It was also widely reported that the Federal Reserve is expected to leave lending rates at the 2 percent mark due to limited inflationary pressures.

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