Alabama unemployment rate rises to 8.5 percent

Figures announced by the state Department of Industrial Relations on Friday show Alabama’s rate has been going up since measuring 7.2 percent in April. It was 7.4 percent in May, 7.8 percent in June, and 8.3 percent in July.

“It’s not just for Alabama. It’s a national trend. Job growth has slowed down,” said Ahmad Ijaz, an economic research at the Center for Business and Economic Research at the University of Alabama.

The July rate represents 183,315 unemployed people, up from 179,189 in July, but better than the 198,444 recorded a year ago when the state’s jobless rate was 9.1 percent.

Alabama’s rate for August was higher than the national rate of 8.1 percent.

Ijaz expects the trend in Alabama’s unemployment rate to continue because of softness in retailing and some other business sectors, economic problems in Europe that are hurting exports, and a general feeling of uncertainty.

“This creates an environment where businesses are reluctant to hire right now,” he said.

State Industrial Relations Director Tom Surtees said there were some positive signs in August, including the 19,327 new unemployment claims being the lowest number for August since the pre-recession days of August 2007, when 17,346 filed. He said the department also saw a record 14,546 job openings posted on its Joblink website.

Counties with the lowest unemployment rates were Shelby at 5.8 percent, Coffee at 7.1 percent, and Blount, Limestone and Madison at 7.2 percent.

Counties with the highest unemployment rates were Wilcox at 19.2 percent, Bullock at 17.1 percent and Dallas at 16.6 percent.

Online: http://www.joblink.alabama.gov