Delaware’s unemployment rate stayed above 7 percent in May as job growth struggled to keep pace with a growing labor pool. The seasonally adjusted unemployment rate in May 2013 was 7.2%, up from a revised 7.1% in April 2013. The state Department of Labor reported 32,100 unemployed Delawareans in May compared to 31,600 during the same month in 2012. The jobless rate has remained in the 7% range since the end of 2011 as job growth and the growth in the labor market remained equal. The U.S. unemployment rate was 7.6% in May 2013, up from 7.5% in April 2013. In May 2012, the U.S. unemployment rate was 8.2%. In May, seasonally adjusted non farm employment totaled 425,100, up from 424,000 in April 2013.
Since May 2012, Delaware’s total non farm jobs rose 7,100 jobs, up 1.7%. The national growth rate was 1.6%. A report issued earlier this year by PNC predicted the jobless rate in the state would remain at around 7 percent into 2014. Commentary accompanying the state employment report also indicated data suggested a 7% unemployment rate in coming months.
During boom periods, Delaware often posted a jobless rate in the vicinity of 3.5%. Showing weakness are “blue collar” job categories. Employment in manufacturing and construction is virtually unchanged from a year ago, although statistics also seem to point to an upturn in those categories.
The closing of the state’s two auto plants in 2008 and 2009 is still being felt, since that industry tends to rapidly add jobs during economic recoveries. Since November 2011, the state’s labor force has grown by 3,400. The number of employed residents has risen by 3,700, and the number unemployed has fallen by 350. The population of residents 16 years old and over is estimated to have risen from 714,900 to 725,500.
Growth in the working-age population could keep the unemployment rate relatively high for an extended period, even with relatively strong job growth, the labor department reported. The report did take note of a separate measurement of jobs at employers within Delaware. That report shows stronger job growth. From the end of 2011, when the unemployment rate entered its current plateau, jobs in Delaware increased by 7,600.
In a small state with a good deal of commuting to work across state lines, the two measures could converge and lead to a lower unemployment rate, the reported noted. In coming months, some suggest concern over the federal budget, the Affordable Care Act and “sequester” cuts in federal spending could affect employment numbers.
