Storms hit jobless

Published 10:00 pm Saturday, June 18, 2011

The list of injuries and deaths tied to the series of horrific storms and tornadoes of April 27 has been reported, but late last week, the Alabama Department of Industrial Relations released May’s unemployment results and in doing so, showed another troubling impact from the high winds, heavy rains and deadly twisters.

Alabama Department of Industrial Relations Director Tom Surtees announced Thursday that Alabama’s May 2011 unemployment rate rose to 9.6 percent, up from April’s rate of 9.3 percent. It is also the first time in quite a while when the current unemployment figure is higher than the same month the previous year. Last May, the state saw an unemployment rate of 9.5 percent.

According to a department release, several factors contributed to the increase, the first being the impact of the storms that ravaged the state. Due to the method in which the unemployment rate is calculated, the effects of the storms on unemployment weren’t included in April’s rate, but rather are reflected in the May rate.

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To date, the department has processed over 6,400 storm-related unemployment claims.

Another factor is May is historically a month when the labor force increases. There are additions to the labor force due to college and high school graduations as well as schools letting out for the summer. Also, some recent positive economic indicators have led many people who had given up looking for work to re-enter the job market.

“While we are disappointed to report an increase of three-tenths of a point in our unemployment rate, we have to keep the big picture in mind,” Surtees said. “We knew that the devastating storms we suffered in April were going to have an impact on unemployment. This is something that we could not have foreseen. I’m not going to go so far as to say that the entire increase can be attributed to the storms, but they’re certainly a major factor.”

A recently published study by the Alabama Center for Business and Economic Research indicates that the April 27 tornadoes “will initially reduce … employment by about 5,600 – 13,200 jobs or 0.2 – 0.5 percent.” The study goes on to further say recovery activities will eventually create up to 51,700 jobs in the short term.

Dallas County’s unemployment rate followed the statewide trend, inching higher in May, reaching 16.0 percent. That figure is higher than April’s 15.4 percent and higher than May 2010 when the county’s unemployment rate was 15.9 percent.

The counties with the lowest unemployment rates were Shelby County (6.9 percent), Coffee County (7.3 percent) and Pike County and Madison County (7.9 percent). The counties with the highest unemployment rates were Wilcox County (21.7 percent), Perry County (17.3 percent) and Monroe County (16.3 percent).