County jobless rate dips slightly

Yuma County's jobless rate for December dipped slightly from the previous month but also is a bit higher than the same month in 2011.

December's jobless rate is 27.3 percent, the Arizona Department of Administration reported Thursday. In comparison, the rate was 27.7 percent in November and 27.1 percent in December 2011.

The slight dip in December's jobless rate reflects an increase in employment of 436 for a total of 65,537. At the same time, the number of people in the civilian labor force increased by 168 to a total of 90,171.

However, there were 2,500 fewer people in the county's civilian labor force in December 2011 than this past month.

Meanwhile, the state's jobless rate jumped a bit last month — maybe.

New figures Thursday from the Department of Administration set Arizona's seasonally adjusted unemployment rate for December at 7.9 percent. That's up 1/10th of a point from November.

The number of people employed went up. But Aruna Murthy, the agency's director of economic analysis, said Thursday the number of people out looking for work went up more.

Hence the increase in the rate.

Even with that explanation, though, Murthy said there may be less to the numbers than it appears.

She pointed out that the reports, which come from a survey of employers, show total retail employment dropped in December from the prior month. Murthy said that's never happened in 20 years.

So she believes the sample is flawed.

“It is that time of the year when people get busy with their businesses and they are not doing the usual sending off of the surveys and the reporting.

“It's not the economy has gone south,'' Murthy continued. “No, it's not the case. And it's not that retail businesses have gone south.''

Even with those questions, Murthy said the December report looks decent. She said the private sector added 4,900 jobs last month.

However, there were 1,700 fewer government jobs, resulting in a net gain of 3,200 jobs statewide.

Looking at the longer term, Murthy said the total number of people working at Arizona private companies in December is up by 57,700 from the same time a year ago. That is a 2.8 percent increase, which she said is relatively healthy.

That puts employment 2.8 percent above where it was a year earlier.

Looking at individual sectors of the economy, Murthy said bars and restaurants added 2,800 jobs last month. She said that is far above the average of 600 in December.

But hotel and motel employment was down by about 1,500.

The state's health care industry, which has pretty much bucked the recession as Arizonans continue to need medical attention, continues to grow, adding another 1,500 jobs in December.

Conversely, private colleges continue to shed staff, dropping total employment by 600.

Murthy cannot talk about individual companies. But it is no secret that the University of Phoenix has seen a double-digit drop in students in the past few years.

Some of that is due to the federal government tightening up on requirements for student loans. But Murthy said she would expect a drop in enrollment about now.

She said that during periods of recession and high unemployment, people tend to enroll in school to get new skills or advanced degrees. Then, as more jobs become available, those same people get back in the work force.