Louisville metro unemployment reaches double digits

By DANIEL SUDDEATH, Evening News
Daniel.Suddeath@newsandtribune.com

It would be nice if the latest unemployment report was an April Fool's joke, but a 10 percent jobless rate in February for Louisville metro is no laughing matter.

The unemployment mark jumped again during the second month of 2009, according to a Bureau of Labor Statistics report released Wednesday. The Louisville Metropolitan Statistical Area - which includes Clark and Floyd counties - suffered more than a half-percentage point increase, up from 9.4 percent in January.

The area's February to February job decline equaled a 2.9 percent setback in workers, down 18,000 nonfarm payroll jobs in that period.

"This is not as severe as the overall percentage declines for Kentucky and Indiana," said Uric Dufrene, Sanders chair of the Indiana University Southeast business department. Kentucky's loss for that time frame is 3.6 percent, and Indiana's 3.7 percent.

Dufrene remained optimistic about the latest numbers.

"Even though total nonfarm payroll [losses] accelerated during the month of February, the additional losses can be attributed primarily to one sector: mining, logging and construction," he said.

That sector shed 2,800 jobs from January 2008 to February 2009. On the bright side, Dufrene said manufacturing declines have started to decelerate - as have cutbacks in transportation and utilities - and retail losses remained flat.

Financial activities, professional and business services and education and health care showed increases in the bureau's report.

"These two gains [financial activities and professional and business services] and the slowing of losses in manufacturing and transportation can be viewed as an early barometer of the region hitting a trough in job losses," Dufrene commented.

"That said, we will continue to see further losses throughout the year - the magnitude of these losses will begin to decelerate, however."

The beginning of April brought some good news for those who remained employed. The Internal Revenue Service asked employers to have tax credits included in workers' checks beginning April 1, a break implemented through the American Recovery and Reinvestment Act.

The cuts provide up to $400 for workers making less than $75,000 annually and up to $800 for married couples making less than $150,000 a year.

"These tax cuts will put money back into the hands of hard-working Hoosiers families," said Rep. Baron Hill, D-Ind. The congressman voted in favor of the stimulus package.

"Not only is it one of the quickest ways to stimulate the economy, [but also] many Hoosiers need this money to make ends meet during these difficult economic times."