Alabama Department of Industrial Relations Director Tom Surtees announced June 19 that Alabama's state unemployment rate had risen from 9.0 percent in April to 9.8 percent in May.
The new May unemplolyment rate equates to 208,917 unemployed persons. The sectors that saw the most significant losses were manufacturing, construction, government, financial activities and information services.
"Since last month's rate held steady at 9 percent we had hoped that we would continue to see some stabilization," said Surtees, "Unfortunately, the nation is still gripped in a serious recession, and Alabama is not immune to its effects."
Lee County is not immune to these rise in unemployment numbers either. Over the past month the unemployed numbers have increased by 700 people in the community from 4,168 to 4,868. "That's a dramatic change," said Richard Ault associate professor of economics.
"The economy for the city of Auburn has done by well in the past because the university has continued to grow rapidly," Ault said, "Depending on the TARP funds coming in, we will see where it goes from here. The community has in the past done well because of the University, but that trend could be a thing of the past."
Ault also said that statistics for the city of Auburn can sometimes be misleading.
"These numbers can sometimes be skewed depending on how they count the student population and their incomes," Ault said. "Sometimes students are not counted as part of the labor force when they should be."
On Monday, Gov. Bob Riley approved a $50,000 grant to further enhance the job skills of 30 employees at the Auburn company, Hoerbiger Automotive Comfort Systems Inc. Hoerbiger will use the grant funds to help train workers in identifying production waste, improve work processes and increase product quality.
"To keep good jobs in our state, Alabama businesses must remain competitive in the global marketplace," Riley said. "I am pleased to provide this funding to enhance skills, protect jobs and support new employment opportunities."
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