Missouri unemployment rises slightly

by David Reed

March 18,2009

            Missouri's unemployment in February increased by two-tenths of a point to 8.3 percent, according to data released Tuesday by the Missouri Department of Economic Development.

The month's changes reflect continuing deterioration in the national economy and labor markets, according to DED officials. Columbia lost an estimated 300 jobs, the smallest amount among the state's metropolitan areas. The city’s unemployment rate in January was 6 percent. Approximately 250,000 Missourians were estimated to have been jobless during the month of February.

On a seasonally-adjusted basis, nonfarm payroll employment decreased by 6,400 jobs in February, which was less than in the previous three months, when decreases averaged 11,500 per month. The state's seasonally-adjusted unemployment rate of 8.3 for February, up from 8.1 in January, is slightly above the national rate of 8.1 percent. The increase in Missouri between January and February was less than the half-point increase reported for the U.S. for the two months.

The largest employment decreases were in professional and business services (4,000, with most of the losses occurring in the administrative and support services sector) and in manufacturing (2,500). Other industries showing smaller decreases included construction, retail trade, health care and social assistance, and other services. These decreases were partly offset by gains in private educational services (up 2,200, primarily a rebound from last month's seasonally-adjusted increase), leisure and hospitality (1,400) and government (1,400).

Over the past year, Missouri nonfarm payrolls have fallen by 51,400 jobs, or 1.8 percent. The largest decreases have been in manufacturing (26,600, the majority in the durable goods sectors), construction (10,600), retail trade (6,600) and professional and business services (5,400). The principal exceptions to the downward trends were in private educational and health services (8,400) and government (6,900).

Nonfarm payroll employment decreased in all metropolitan areas in February, on a seasonally-adjusted basis. The biggest decreases, 1,900, was in Kansas City. Decreases in retail trade employment – plus failure by other industries to show their normal February employment increases – accounted for many of the losses.

Over the past year, St. Louis (31,500) and Kansas City (13,100) have experienced the biggest number of net job losses. Losses were widespread, with cutbacks in manufacturing, construction, and retail trade being the most prominent.