December unemployment rate drops to 5.1 percent

The Vermont Department of Labor announced today that the seasonally-adjusted statewide unemployment rate for December 2011 was 5.1 percent, a decrease of two-tenths of a percent from the November rate.  At 5.1 percent, Vermont’s seasonally adjusted unemployment rate is the lowest the statewide average has recorded since October 2008.  The current comparable national rate is 8.5 percent which reflects a decrease of two-tenths of a percent from the previous month post revision. 

Vermont’s annualized average unemployment rate for 2011 was 5.5 percent, barring revision, a decline of seven-tenths from the 2010 annual average. 

“The trend in 2011 created some welcomed distance from the recent recession.  Economic indicators in Vermont, such as the unemployment rate and employment by industry, are more positive.  We are still paying close attention to federal and international economic risks as areas for potential risk, but Vermont appears to be making headway forward in its economic recovery. We hope that Vermont employers will continue to work with the department for recruitment needs since there are many Vermonters who sincerely want to work and need a chance at a job to prove themselves”, said Department of Labor Commissioner Annie Noonan. The Department of Labor administers many programs and incentives that can help both employers and job seekers, such as job development, placement assistance, applicant screening, on the job training funds, apprenticeship and internship programs, veterans and long-term unemployed hiring incentives, workforce education and training grants, and specialized programs for groups such as “at-risk” youth, dislocated workers, unemployed and transitioning workers, and Vermont veterans.  “There are many program supports available to Vermonters, and the best way to find out about the programs and services is to visit one of our 12 regional VDOL offices”.  

State of Vermont Overview 

The Vermont seasonally adjusted unemployment rate decreased by two-tenths of a percent in December to 5.1 percent.  The comparable rate over the same time period for the United States was 8.5 percent, a decrease of two-tenths of a percent from the prior month.  The seasonally adjusted Vermont data show the total Vermont labor force declined by 1,100.  Total employment decreased by 400 while total unemployment decreased by 800. The over the month changes to the unemployment rate and total unemployment were statistically significant.  Vermont is reporting the lowest number of total unemployment since October 2008. 

December unemployment rates for Vermont’s 17 labor market areas ranged from 3.2 percent in Warren-Waitsfield to 7.7 percent in Newport (note: local labor market area unemployment rates are not seasonally adjusted).  For comparison, the December unadjusted unemployment rate for Vermont was 4.9 percent which reflects an increase of two-tenths of a percent from the November level and a decline of six-tenths of a percent from a year ago.

Analysis of Job Changes by Industry 

The preliminary ‘not seasonally adjusted’ jobs numbers for December show an increase of 4,300 jobs when compared to the revised November numbers.  This reported over the month change does not include the 150 job increase between the preliminary and the revised November estimates due to the inclusion of more data.  As detailed in the preliminary ‘not seasonally adjusted’ December data, Total Private was up 5,050 jobs and Government reported a decrease of 750 jobs.  Leisure and Hospitality recorded a positive bounce of 5,550 jobs as winter attractions ramped up activities.  The next largest positive nominal change was in Trade, Transportation & Utilities (+900 jobs).  Conversely, sectors reporting the greatest nominal job losses were Construction (-850 jobs) and Local Government Education (-750 jobs). 

The seasonally adjusted data for December reports a decrease of 700 jobs from the revised November data.  As with the ‘not seasonally adjusted’ data, this over the month change is from the revised November numbers which experienced an upward revision from the preliminary estimates by 400 jobs.  A review of the seasonally adjusted December numbers reflects that Vermont’s Private Industries reported a decrease of 500 jobs while Total Government reported a decrease of 200 jobs.  Significant over the month nominal changes were noticed in several industries.  At the sector level, the largest nominal job gains occurred in Construction (600 jobs) and Trade, Transportation & Utilities (500 jobs).  For job declines, Leisure & Hospitality (-700 jobs) and Local Government (-600 jobs) reported the largest nominal movements.