Jobless rate goes back up

Flathead County’s unemployment level rose in October to 10.8 percent, a full percentage point increase from September’s 9.8 percent.

The county had dropped out of double digits in September for the first time in a year. Last October, the county’s rate was 9.3 percent. Unemployment then increased every month for five months, reaching a high of 13.8 percent in March, before tapering off for the next six months.

The 10.8 percent translates to 4,669 people classified as unemployed out of the county’s estimated labor force of 43,285.

Those labor force numbers are significant, Bill Nelson, manager of the Flathead Job Service office, said.

The county’s labor force actually decreased by 1,375 people from September to October, Nelson said.

He attributes the drop to “discouraged workers who are not actively looking for work any more.” While there are fewer employed people in Flathead County, only 287 fewer people were unemployed in October than in September. The decrease in the labor force ends up translating into a bigger percentage increase.

While it’s not unusual or surprising to see the unemployment rate increase every fall in Flathead County because of the disappearance of seasonal jobs, Nelson said, the decrease in the labor force is not typical.

In the last year, Flathead County’s labor force has dropped by about 5,000 people, he said, and compared to August 2009, the county’s labor force has decreased by about 7,000 people.

“That’s pretty dramatic,” Nelson said.

Besides people no longer looking for work “because they know there aren’t very many jobs out there,” some unemployed people probably moved out of the county, he said.

The unemployment numbers include people who don’t receive unemployment compensation, Nelson said. That data is collected through surveys, but because there’s not a “register” such as exists for people who do receive unemployment compensation, “there’s some question to the accuracy” of the numbers.

Nelson is optimistic about a good winter ski season, which could result in strong employment at area ski resorts and increased visits by out-of-area skiers who spend money in local businesses and allow those business owners to employ more people.

Flathead continues to rank among Montana counties with the highest unemployment rates. Lincoln and Sanders counties tied for the highest rate of unemployment — 13.9 percent. Big Horn County registered 11.1 percent unemployment, followed by Glacier County at 10.9 percent. Mineral County tied with Flathead at 10.8 percent.

Several Montana counties registered unemployment levels below 4 percent, including Fallon with 2.5 percent, McCone at 3 percent, Richland at 3.2 percent, Sweet Grass at 3.4, and Carter and Wibaux, both at 3.5 percent.

County rates are not seasonally adjusted.

The state’s unadjusted rate was 6.7 percent, up from 6.5 percent in September.

Montana’s seasonally adjusted rate, however, dropped to 7.3 percent from 7.4 percent in September, due to a slight decline in the labor force, according to Montana Labor Commissioner Keith Kelly.

The decrease in both the number of employed Montanans and the total labor force “is an indicator that job growth remains tepid in Montana,” Kelly said.

Montana posted job gains through the first half of 2010, he said, but wavered slightly in the third quarter. Payroll employment estimates fell by 200 jobs in October, following a decline of about 1,000 jobs the month before. On a seasonally adjusted basis, the estimate for the total number of Montanans who are working, including agriculture, payroll and self-employed workers, posted a loss of 710 jobs.

Reporter Shelley Ridenour may be reached at 758-4439 or by e-mail at sridenour@dailyinterlake.com.