Vermont unemployment rate jumps three-tenths to 5.3 percent

An increase in the number of unemployed and a decrease in the number of workers led to an increase in the Vermont unemployment rate of three-tenths to 5.3 percent in August. The number of people working was down 1,400 from July and 400 from a year ago. The Vermont Department of Labor today released the seasonally-adjusted statewide unemployment rate for August 2012. Despite the increase, at 5.3 percent, Vermont’s rate continues to remain significantly lower than the national average of 8.1 percent which fell by two-tenths of one percent from the prior month.  For the second straight month the Northeastern region saw increases in their unemployment rate as reflected in the standard household survey data. (SEE TABLE BELOW)

“While the rate increased this month, Vermont continues to hold the lowest unemployment rate in the northeast region, and still has one of the lowest unemployment rates in the nation, positioned at fifth lowest.   The diverse mix of businesses in Vermont has helped insulate us against some of the economic downturns facing other states.  We know, however, that the effects of the storms last spring and summer and the national recession have impacted Vermont businesses and households.  The good news is that Vermont businesses are continuing to post many job openings with the Department of Labor. As we have reported, Vermont had a new job growth of 7,500 jobs between January 2011 and June 2012.  The Department makes phone calls every day to Vermont employers to discuss their hiring needs and future recruitment plans; and then connect Vermont job seekers to the job openings. Employers are looking to hire people who are job-ready, or in some cases simply willing to learn the job and be a reliable and productive worker. We are very hopeful for continued progress in job growth and placements for Vermonters”, said Labor Commissioner Annie Noonan. 

State of Vermont Overview 

The Vermont seasonally adjusted unemployment rate increased by three-tenths of a percent to 5.3 percent in August.  The comparable rate for the United States decreased two-tenths of a percent to 8.1 percent.  The seasonally adjusted Vermont data for August show the Vermont total labor force declined by 400 from the July estimates.  Total employment decreased by 1,400 while total unemployment increased by 1,000; both of these over-the-month changes were statistically significant. 

August unemployment rates for Vermont’s 17 labor market areas ranged from 3.5 percent in Hartford to 6.7 percent in Newport (note: local labor market area unemployment rates are not seasonally adjusted).  For comparison, the August unadjusted unemployment rate for Vermont was 5.0 percent which reflects a decrease of three-tenths of a percent from the July level and a decline of one-tenth of a percent from a year ago. 

Analysis of Job Changes by Industry 

The preliminary ‘not-seasonally-adjusted’ jobs estimates for August show a decrease of 900 jobs when compared to the revised July numbers.  This reported over-the-month change does not include the 150 job increase between the preliminary and the revised July estimates due to the inclusion of more data.  The broader economic trends can be detected by focusing on the changes between August 2012 and August 2011.  As detailed in the preliminary ‘not seasonally adjusted’ August data, Total Private Industries have increased by 1.4 percent (3,500 jobs) and Government has increased by 1.2 percent (500 jobs) within the last year.  

The seasonally adjusted data for August reports a decrease of 2,400 jobs from the revised July data.  As with the ‘not-seasonally-adjusted’ data, this over-the-month change is from the revised July numbers which experienced an upward revision from the preliminary estimates by 300 jobs.  A review of the seasonally adjusted over-the-month changes in August reflects employment decreases across ownership types; Private Industries and Total Government both reported decreases (2,100 and 300 jobs, respectively).  In percentage terms, Leisure & Hospitality (-1,200 jobs or -3.5 percent), Professional & Business Services (-500 jobs or -1.9 percent) and Manufacturing (-300 jobs or -1.0 percent) reported notable decreases from the prior month.  Education & Health Services increased 500 jobs from the prior month estimate (+0.8 percent).