Micron layoffs blunt job growth elsewhere in Idaho

The impact of this winter’s layoff of 1,100 workers at Micron Technology Inc. erased the benefit of modest job growth in other sectors during March, pushing Idaho’s seasonally adjusted unemployment rate higher.

The Associated Press Magicvalley.com

The Labor Department on Friday estimated the state’s March jobless rate at 5.5 percent, up two-tenths of a point from February but still four-tenths of a point below March 2002.

"As slow as Idaho’s economy has been in recovering from the recession, it is positive to note that from one year ago, the number of persons employed has increased by 12,000," department analysts said.

And even with the Micron layoffs, total employment in March remained at a record high 656,900, matching February’s number.

"These are tough times," Gov. Dirk Kempthorne told his special Blue Ribbon Task Force. "We will get through this, and we will be better for it."

The task force of four dozen business, labor and civic leaders backed Kempthorne’s original sales tax hike to avoid further state budget cuts and keep economic development programs viable. On Friday, it called for elimination over time of the sales tax exemptions, which would double sales tax collections or permit reduction in the rate.

Lawmakers, however, have been reluctant to raise taxes, keeping focused on the sluggish economy.

But Friday’s unemployment figures offered a mixed view. While the overall jobless rate was up from February, only 14 of the 44 counties showed local unemployment rates up from the month before, and that included Ada and Canyon counties, the two largest.

Twenty-two counties still had unemployment rates over 6 percent, but only three were in double digits. It has been more than five years since only three counties have had double-digit percentage jobless rates.

While total employment was unchanged from February, the jobless rate rose because of 1,000 new entrants into the labor force could not find jobs.

Unlike Idaho’s rate, the national unemployment rate remained unchanged at 5.8 percent as American companies slashed over 100,000 jobs and the labor force contracted.

It was the second straight month that Idaho unemployment has run below the national rate.

Four months ago, the Idaho rate was at an eight-year high.

Analysts said the good weather boosted agricultural and construction employment while retailers picked up workers to deal with the spring shopping season and recreation remained strong into April.

Through the first quarter of 2003, the unemployment rate has averaged just over 5.4 percent, well below the projection for the year. Labor department analysts in early February predicted average unemployment this year would run about 5.7 percent, down a notch from 2002.

http://www.magicvalley.com/news/business/index.asp?StoryID=1757