DaytonDailyNews.com

Unemployment jumped locally in December and may be the highest in more than 10 years — but one economist says the worst is yet to come.

Butler County's unemployment rate jumped from 6.2 percent in November to 6.6 percent in December, according to the Ohio Department of Job and Family Services.

Hamilton's jobless rate increased from 7 percent to 7.6 percent; and Middletown had one of the highest rates in southwest Ohio at 8.2 percent, up from 7.7 percent in November. About 300 more people were unemployed last month in Warren County, which reported a 6.2 percent unemployment rate compared to 5.9 percent in November, according to the state.

While these are the highest rates seen in a decade, it's far from hitting bottom, said Thomas Hall, a Miami University economics professor.

"I think the unemployment rate will continue to go up for a while as the economy continues to contract," he said.

Typically, unemployment is a "lagging indicator," meaning the economy could turn before jobless rates do, he said.

Hall said he expects Butler County's rate to peak between 8 and 8.5 percent as job cuts expand beyond manufacturing, which has been significantly reduced locally over the years, but he expects the financial outlook to begin improving by mid-2009.

The International Labour Organization predicts unemployment worldwide could reach 230 million, or 7.1 percent, by year's end.