Metro jobless rate ties 25-year high

By Sean F. Driscoll

BusinessRockford.com

ROCKFORD — People unsuccessfully searching for summertime work contributed to the highest June unemployment rate in 26 years, even though 1,200 more people had a job compared with last month.

June’s unemployment rate in Boone and Winnebago counties was 14 percent, or more than 25,000 jobless residents, according to data released today by the Illinois Department of Employment Security. That’s up 0.6 percentage point from May and 5.3 percentage points from a year ago.

The rate was the highest for June since 1983 and tied a 25-year high-water mark last seen in February.

Although few industries reported large increases or drops in employment from May to June, summer usually sees an increase in people searching for work. And this year, fewer opportunities are available.

“Typically during the summer we see some seasonal labor force changes ... as people that had been in school are now seeking employment,” said Tom Austin, IDES labor market economist. “You also see a certain amount of seasonal employment, but with the influx of people looking for those opportunities, that puts some upward pressure on the unemployment rate.”

Manufacturing cuts continued to be the biggest hit to the Rockford metro area’s employment stats, with 4,200 jobs cut in the last year. The on-again, off-again production schedule of the Belvidere Chrysler Group LLC’s plant and its supplier companies has affected the unemployment rate since early 2009.

The plant is expected to resume production Monday, albeit with only one shift and 992 fewer workers. It’s unclear whether the change will be reflected in the July unemployment rate, however. Workers had been called back briefly before starting a two-week shutdown, which included the week of the monthly unemployment survey, and had to use vacation time to be paid during that span.

Reach staff writer Sean F. Driscoll at 815-987-1346 or sdriscoll@rrstar.com.

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