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First State sees unexpected rise in jobless rate for August

Delaware Public Media

Delaware posted the biggest loss in jobs and the biggest rise in unemployment in years from July to August -- but the labor department says it may just be a statistical fluke.

 

The jobless rate rose two-tenths of a point to 4.9 percent from July to August, the first such increase since 2009. And the state reports that its business sector lost 2,500 jobs, the most in a month since 2011.

That's seasonally adjusted -- the state expects to lose about 2,500 jobs in August as the summer winds down, but saw a total drop of twice that many. Still, state Labor Department statistician George Sharpley says:

"We're not losing jobs just because the job from July to August is negative. The over-the-year change is still 5,600 positive," Sharpley said. "So there's absolutely no reason to believe that in September, October, November, December, we're going to continue to see jobs lost."

But he says the rapid economic growth Delaware has seen in recent years may slowing to a more average pace.

 

"The economy can't keep growing at well above-average paces forever," Sharpley said. "So we expect at some point that the 12,000-a-year job growth has got to slow down. It will slow down. So that's the most likely explanation, is we're reverting to more of a long-run, normal job growth."

August's data shows non-seasonally-adjusted local jobless rates all rose too. Sussex County still has the lowest rate, but it rose two-tenths of a point to 4.2 percent. Kent County has the highest, up three-tenths to 5.9 percent.

Unemployment in Wilmington rose two-tenths to 7.6 percent. Newark saw the biggest jump -- a seven-tenths rise to 5.7 percent.

 
The First State is still well ahead of this time a year ago, when unemployment was at 5.7 percent. And it's still below the national jobless rate, though that gap is narrowing -- national unemployment continued falling for August and now stands at 5.1 percent.

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