Vermont unemployment rate dips to 6.0 percent

The Vermont Department of Labor announced today the seasonally adjusted unemployment rate for June 2010 was 6.0 percent, down two tenths from the revised May rate and down 1.2 percent from a year ago. 

“The unemployment rate and the jobs count both showed improvement in June,” said Valerie Rickert, Acting Commissioner of the Vermont Department of Labor.  “A decline in the number of unemployed caused the unemployment rate to drop and the over the month change in the payroll survey may suggest some positive signs for the Vermont economy. The trends of the past several months continue to show slow but steady improvement in the Vermont labor market.”

Vermont Labor Force Statistics Seasonally Adjusted   Change to         June 2010 from      June  2010   May  2010   June  2009   May  2010   June  2009     Total Labor Force 358,800 360,800 360,100 -2,000 -1,300   Employment 337,200 338,500 334,200 -1,300 3,000   Unemployment 21,600 22,300 25,900 -700 -4,300   Rate 6.0% 6.2% 7.2% -0.2 -1.2

Seasonal Job Growth

The total job gain in June was mostly typical for the period. Since May, Vermont added 3,350 payroll jobs. Leisure & hospitality contributed the majority, adding 3,800, which reflect seasonal influences at many hotels, motels and eating & drinking establishments. Retail grew by 850 due primarily to the seasonal expansion of payrolls. Construction also continued its seasonal expansion, adding 550 jobs. Manufacturing experienced a healthy over the month change, up 500; both durable and non-durable goods presented increases. Private educational services added 400 jobs, which was a divergence from the typical seasonal pattern. Government education shed a comparatively average number of seasonal jobs in June. A decline in the number of intermittent Census workers drove the downturn in Federal government employment.

The annual rate of unadjusted job growth was -0.4%, which is up one percent from the revised May estimate.

When seasonally adjusted, June payroll jobs added 1,500 over May and lost 1,900 from a year ago. Leisure & hospitality grew by 1,200, with all of the gain concentrated in accommodation & food services. Private educational services presented an unusual increase, up 1,100 since May, which may represent a statistical anomaly associated with the seasonal aspect of the industry in combination with the aforementioned estimated unadjusted job growth. Construction lost 500 jobs; though we may see some improvement in this sector once more data for June becomes available. Retail added 300 jobs. In aggregate, government lost 400 jobs, with state government down 1,000 and local government up 800 over May.

Employment Growth

Vermont’s June seasonally adjusted unemployment rate fell by two tenths of a point to 6.0 percent as a result of a decline in the number of unemployed. For comparison purposes, the US seasonally adjusted unemployment rate for June was 9.5 percent, also down two tenths from May.

June unemployment rates for Vermont’s 17 labor market areas ranged from 4.1 percent in Hartford to 7.9 percent in Newport. Local labor market area unemployment rates are not seasonally adjusted. For comparison, the June unadjusted unemployment rate for Vermont was 5.9 percent, unchanged from May and down 1.3 percent from a year ago. The change in the unadjusted unemployment rate was not statistically significant from the May value.

Source: Vermont DOL. 7.20.2010