Washington, DC, August 18, 2006--Most states saw unemployment rates rise in July, with 41 states reporting increases from June, led by Mississippi and Midwestern manufacturing states, the Labor Department said on Friday.
Only seven states saw unemployment rates decline in July, and two states--Georgia and Missouri--saw no change.
Mississippi, whose coastal gaming industry was devastated by Hurricane Katrina nearly a year ago, had the nation's biggest increase in unemployment, rising 0.9 percentage point over June to 8.0 percent--the highest rate in the country.
Mississippi's labor force in July was virtually flat at 1.31 million, but those counted as unemployed swelled to 104,900 from 92,900 in June.
In July 2005, Mississippi's unemployment rate was 7.1 percent, also the highest of any state for the period.
In neighboring Louisiana, meanwhile, the picture differed sharply, with the unemployment rate falling 1.7 percentage points to 2.9 percent--the nation's biggest monthly drop and the lowest rate.
The Labor Department attributed part of the drop to residents relocating to other states after Katrina struck in August 2005, flooding New Orleans.
Although the ranks of Louisiana's unemployed fell by 33,400 during July, the size of the civilian labor force--those working and actively seeking work--also shrank by 19,800 to 1.85 million, contributing to the magnitude of the rate decline.
In July 2005, one month before Katrina smashed into Louisiana, the state's unemployment rate was 5.6 percent.
Regionally, the highest unemployment rate in July was in the Midwest at 5.1 percent, up from 4.8 percent in June. The Northeast's July rate rose to 4.9 percent from 4.6 percent in June, while unemployment rose 0.1 percentage point in both the South and the West to 4.6 percent and 4.8 percent, respectively.
After Mississippi, Ohio and Michigan had the largest jobless rate increases, both rising by 0.7 percentage point to 5.8 percent and 7.0 percent, respectively. Both states' economies are heavily tied to manufacturing, particularly in the hard-hit domestic automotive sector.
Among other states reporting decreases in jobless rates in July, South Carolina's rate fell 0.5 percentage point to 6.2 percent, and rates for both Massachusetts and Wyoming fell 0.3 percentage point to 4.7 percent and 3.0 percent, respectively.
