Saturday, Jul. 19, 2008

Valley unemployment keeps rising

Area remains one of state's hardest places to find a job

Northern San Joaquin Valley unemployment continued to climb in June, according to a report released Friday. Statewide, job seekers are facing the toughest time finding work in five years.

Stanislaus County's jobless rate rose a tenth of a percentage point over May as the sinking housing market and climbing gas and food prices continued the region's economic erosion.

It's depressing news for folks such as Jim Martin, 50, of Waterford, who has been out of work for almost a year. The former pest-control man said he has applied everywhere and has landed few interviews. During one, he learned 175 people had applied for the same job.

"That's the kind of competition I have," he said. "After a while, you start to get depressed."

Martin said the more he hears of rising unemployment and a statewide recession, the more impossible his task feels.

Stephen Levy, senior economist for the Center for Continuing Study of the California Economy, said the state has entered a mild recession. California has a 6.9 percent unemployment rate, which means 1.28 million Californians are looking for work, according to Friday's Employment Development Department report.

The state is tied with Mississippi for the third-highest jobless rate in the nation behind Michigan and Rhode Island, according to the U.S. Bureau of Labor Statistics. Unemployment nationwide was at 5.5 percent last month.

California last saw a 6.9 percent unemployment rate in 2003. The state's June unemployment rate is a slight increase over May, but a leap from 5.3 percent in June 2007.

At the same time, the Northern San Joaquin Valley maintained its status as one of the hardest places to find a job.

At 11.8 percent, Merced County has the fourth-highest unemployment rate in the state after Imperial, Alpine and Sutter counties. Stanislaus has the seventh-highest unemployment rate, at 10.9 percent.

The regional trend is normal, said Liz Baker, EDD labor market analyst for Stanislaus and San Joaquin counties. Unemployment generally increases in June.

Bill Bassitt wasn't surprised by the increase. He is the chief executive officer of the Stanislaus Economic Development and Workforce Alliance, which helps job seekers find work and training.

"Our staff has been extremely busy all year long. It's frustrating. Indalex was the last that closed down. Taken by themselves, you don't think much about it. But when you multiply that, you see the spin-off effect is really taking its toll," he said.

Indalex Inc., which makes aluminum parts for windows, doors and storefronts, laid off 154 workers in the past year. Just a year after announcing plans to expand its plant and make Modesto the center of its operation for Northern California, company officials blamed the closure on a weak construction market.

The construction industry has posted the biggest job losses, shedding 164,500 jobs statewide during the past year. Stanislaus County is down 1,700 construction jobs over last year. It also has lost 700 manufacturing jobs and 500 government jobs.

"Across the board, you're seeing caution. Businesses are laying off to stay fiscally healthy," Baker said.

Still, some are expanding. The education and health services sector grew by 600 jobs over last year. About 300 people found retail jobs last month. Retailers generally hire this time of year, Baker said.

Stanislaus County's unemployment rate has been worse. It reached 11.3 percent in March. It hasn't been long since unemployment was this high countywide. It was at 10.9 percent in January and February 2004.

The Associated Press contributed to this report.

Bee staff writer Eve Hightower can be reached at ehightower@modbee.com or 578-2382.