Jobless rates soar

Trumbull County’s jobless rate was nearly 10 percent in December.

STAFF/WIRE REPORT

WASHINGTON — State unemployment rates shot up nationwide in December, with Indiana and South Carolina racking up the largest monthly increases.

The Labor Department reported Tuesday that Indiana’s jobless rate soared to 8.2 percent in December from 7.1 percent in November as workers were hit by layoffs in manufacturing — including at engine maker Cummins Inc. — as well as in construction and retail.

South Carolina’s unemployment rate bolted to 9.5 percent from 8.4 percent as laid-off factory workers find it difficult to move into different types of jobs. Each state logged a 1.1 percentage point rise in unemployment from November to December.

The U.S. unemployment rate, issued earlier this month, jumped to a 16-year high of 7.2 percent in December.

Ohio’s unemployment rate was 7.8 percent in December, up from 7.3 percent in November.

The state said Tuesday that unemployment rates in the Mahoning Valley also rose in December.

The local rates last month, compared with November, were: Mahoning County, 8.4 percent, up from 7.7 percent; Youngstown, 10 percent, up from 9.6 percent; Trumbull County, 9.8 percent, up from 8 percent; and Columbiana County, 8.9 percent, up from 8.1 percent.

More Americans are getting pink slips as the recession, now in its second year, drags on. A trio of crises — housing, credit and financial — are pushing up foreclosures, shriveling nest eggs and forcing both companies and consumers to pull back, which is aggravating the economic downturn.

Michigan and Rhode Island were the only states to see their unemployment rates hit double digits last month.

Hard hit by fallout in the auto industry as well as in manufacturing, Michigan’s unemployment rate soared to 10.6 percent in December. Rhode Island’s jobless rate hit 10 percent, the highest on records dating back to 1976. The state also has been punished by the steady decline of manufacturing.

Six states — Massachusetts, Michigan, Nevada, New Jersey, New York and Oregon — each posted over-the-month gains of a full percentage point in their unemployment rates in December.

“Regional and state unemployment rates were universally higher in December,” the Labor Department said.

All 50 states and the District of Columbia recorded monthly increases.

On a brighter note, Wyoming posted the lowest unemployment rate, 3.4 percent in December. It was followed closely by North Dakota at 3.5 percent and South Dakota at 3.9 percent.

Since the recession hit, the country has been bleeding jobs, and the outlook this year is grim.

On Monday alone, tens of thousands of new layoffs were ordered by companies including Pfizer Inc., Caterpillar Inc. and Home Depot Inc.

The U.S. economy lost 2.6 million jobs last year, the most since 1945, though the labor force has grown significantly since then. Economists predict another 2 million or more jobs will vanish this year.