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State jobless rate jumps to 10.5 percent

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By William Hershey, Staff Writer Updated 10:12 PM Friday, November 20, 2009

COLUMBUS — Ohio’s unemployment rate was on the rise again in October, jumping to 10.5 percent after two months of slight decreases, the Ohio Department of Job and Family Services reported Friday, Nov. 20.

It was the seventh straight month of double-digit unemployment in the state, a stretch not seen since the early 1980s. The jobless rate was 10.1 percent in September and 10.8 percent in August. The highest rate during the current stretch was 11.2 percent in July.

Total employment increased slightly to 5,098,400, up by 1,400 from September.

In October, there were 618,000 unemployed workers in Ohio, up from 594,000 in September.

During the past 12 months, the number of unemployed grew by 209,000, from 409,000.

The 10.5 percent jobless rate in October compares to a 6.9 percent rate in October 2008.

In Ohio, during October, service-providing employment increased by 2,200. Manufacturing employment, however, dropped by 300.

Economist Edward “Ned” Hill, vice president of economic development at Cleveland State University, said that the new numbers aren’t necessarily a bad sign. They appear to indicate that people who had dropped out of the labor force are once again looking for work and the economy was providing a few more jobs to satisfy them, Hill said.

“Some of the discouraged workers have come back into the labor force,” said Ken Mayland, president of ClearView Economics in Pepper Pike.

Mayland said job growth lags behind other parts of an economic recovery.

“Employers want to see a track record of improving sales before they make the commitment to hire,” said Mayland.

“They want to be sure they recovery is entrenched.”

Mayland added, however, that some employers now worry about possible future tax increases associated with health care overhaul or climate change legislation

Among all the states, Michigan had the highest unemployment rate at 15.1 percent, followed by: Nevada, 13 percent; Rhode Island, 12.9 percent; California, 12.5 percent and South Carolina, 12.1 percent.

The new Ohio rate tops the 10.2 percent national unemployment rate for October.

Contact this reporter at (614) 224-1608 or whershey@DaytonDailyNews.com.

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