4 states surpass 10% rate of jobless

WASHINGTON (AP) — A growing number of states suffered double-digit unemployment rates in January, and others are close behind, buttressing fears that the national jobless rate could hit 10 percent by year’s end.

The rising joblessness reflects the pain that the housing, credit and financial crises — the worst since the 1930s — has caused workers and companies. The latest figures were issued Wednesday in the Labor Department’s monthly report on state unemployment.

“There is hardly any escape from this recession,” said Steven Cochrane, managing director of Moody’s Economy.com. “With state unemployment rates rising so quickly, it reinforces the notion of a 10 percent national unemployment by the end of the year.”

In January, jobless rates rose in 49 states and the District of Columbia. Louisiana was the only state to record a drop.

About 5.1 million people are drawing state unemployment insurance, near an all-time high, the federal government said last week. The crush has exhausted unemployment funds in New York, California and elsewhere, forcing them to tap the federal government for money to keep paying benefits.

Joblessness was worst in the West and Midwest, where the loss of manufacturing, construction, retail and other jobs tied to the collapsed housing market was especially severe.

The West — home to California and some other states that led the housing boom — has been battered by the housing bust. And jobs are vanishing from the Midwest as the troubles of Detroit’s beleaguered automakers spill over and reduce employment in industries linked to autos, such as car parts and other components used in production.

Frank Aguilar, who lives in New Jersey, is among those swept up in the collapse of the U.S. auto industry. After six years at Chrysler, he was laid off about a month ago from his job as a dealer representative in the tri-state area.

“I’m looking for anything right now,” Aguilar said. “I’m antsy.”

The jobless rate in Aguilar’s home state rose to 7.3 percent in January, from 6.8 percent in December.

Four states — California, South Carolina, Michigan and Rhode Island — registered unemployment rates above 10 percent in January.

Laid-off textile, clothing and other factory workers in South Carolina are hard-pressed to find work elsewhere. In Rhode Island, state leaders are still seeking a high-tech replacement for the long-ailing manufacturing sector.

In December, only Michigan had a double-digit jobless rate. One month later, four states did.

Nick Davies is job hunting in South Carolina.

“I’ll take anything you’ve got,” the 47-year-old engineer told a recruiter.