Unemployment rates rise
Increase comes even as states report job gains
WASHINGTON – Unemployment rates rose in more than half of U.S. states in June, evidence that slower hiring is affecting many parts of the country.
The Labor Department said Friday that unemployment rates in 28 states and Washington, D.C., increased last month. Rates declined in eight states and were flat in 14. That’s a change from May, when 24 states reported falling unemployment rates.
Twenty-six states reported a net gain in jobs in June, while 24 states lost jobs.
The changing trend in state unemployment rates reflects a weaker economy hampered by high gas prices and lower factory output. Nationally, employers added only 18,000 net jobs in June, the second straight month of feeble hiring. The U.S. unemployment rate ticked up to 9.2 percent.
The economy expanded only 1.9 percent in the January-March period, and most economists expect similar growth in the April-June quarter. The government releases its first estimate for second-quarter growth on Friday.
Nevada had the highest unemployment rate among the states for the 13th straight month. It rose in June to 12.4 percent, up from 12.1 percent in May. The state has been hampered by foreclosures, depressed home sales and a decline in tourism.
It was followed by California (11.8 percent) and Rhode Island (10.8 percent).
North Dakota reported the lowest unemployment rate, at 3.2 percent.
Tennessee, Missouri and Virginia reported the biggest job losses. Tennessee said 16,900 jobs were cut last month, led by steep losses in state and local government. Missouri suffered its biggest losses in education and health services. Those states were also affected by harsh weather this spring, which may have led to some job losses.
The impasse in Washington over raising the federal government’s borrowing limit could affect several states, including Tennessee and Virginia. Those states, which are tied closely to federal government work, could see a downgrade to their credit rating if the U.S. defaults on its debt.
The government reached its $14.3 trillion borrowing limit in May. The Treasury Department has said it will default on its debt if the limit is not raised by Aug. 2.
Analysts expect another weak month of hiring in July, based on recent data.