Nebraska unemployment rate steady, but numbers rising

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By RICHARD PIERSOL / Lincoln Journal Star

Unemployment rates for Nebraska and the Lincoln area remained static in September, and job totals remain above what they were a year ago -- but unemployment claims in most industries are up sharply.  

So is the number of unemployed people.

 “I think this demonstrates that the national economic downturn does impact the Nebraska economy,” said Eric Thompson, director of the Bureau of Business Research at the University of Nebraska-Lincoln, in an e-mail. “While the Nebraska economy may not be as weak as the national economy, the Nebraska economy is still strongly integrated with the national economy, and will follow critical national patterns such as increases in unemployment.”

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(AP)

(AP)

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Creighton University economist Ernie Goss said he foresees a “short and shallow” recession for Nebraska because of massive international central bank intervention.

The unemployment rate for the Lincoln Metropolitan Statistical Area, which includes Lancaster and Seward counties, was 3.4 percent, unchanged from August, but up 0.4 of a percentage point from a year ago.

The state rate, 3.5 percent, was also unchanged from August, and up 0.4 of a percentage point from a year ago.    

That’s still among the lowest in the nation. South Dakota’s rate is 3.2 percent, Utah, 3.5, Wyoming, 3.3.  Rhode Island’s is the highest at 8.7 percent. 

The local job total, 176,693, was up for the month and up 1,653 for the past 12 months.

Measures of employment and unemployment are both rising, according to the data, but unemployment numbers are rising more. 

There were 35,337 Nebraskans unemployed in September, up 14.4 percent from a year ago.   In the Lincoln area, there were 5,055 people unemployed, up 17.3 percent. 

Meanwhile, there were 168,890 people working in the Lincoln area during the Lincoln area, up only 1 percent from a year ago, and the state’s working labor force was 999,684, up 1.3 percent in the past year.

The 12,889 unemployment insurance claims for the whole state during the month ending Sept. 20 are up 87 percent from a year ago. 

Last month, they were up 81 percent. 

“Nebraska, like the rest of the U.S., is being negatively affected by the downturn in housing and the related credit freeze in national and global financial markets,” said Goss in an e-mail.  “However, the downturn in Nebraska remains tame by comparison to other parts of the nation.  Despite the upturn in unemployment, the reduction in employment growth and declining growth in state GDP, Nebraska has been insulated from some of the very negative factors. 

“Healthy farm income, a less significant downturn in housing, expansions related to renewable energy production, and very strong bank balance sheets have shielded Nebraska to some degree. 

"That said, our monthly surveys of bank CEOs and purchasing managers in this part of the country, including Nebraska, point to recessionary economic conditions in the state in the months ahead.”

He expects this recession for Nebraska will be short and shallow because of the coordinated efforts of central banks across the globe. 

“Additionally, we now have a Congress that is unconcerned about the deficit or the inflation rate,” Goss wrote.  “They are currently deliberating a stimulus package that while adding to the deficit and to inflationary pressures, is sure to pass. 

“All policy makers have their foot on the pedal of the economic engine.  Inflation or deficits are of little concern.  They both should be.”

Reach Richard Piersol at 473-7241 or at dpiersol@journalstar.com.