Jobless rate climbs to 8.7 percent in county

One month after Montgomery County’s jobless rate significantly decreased, it jumped back up in August, with the year’s largest number of residents without a job.

Forty more people lost their job in Montgomery County as the unemployment rate increased from 8.1 to 8.7 percent in August after dropping from 8.8 percent in June.

According to information released last week by the Iowa Workforce Development, 5,030 people were employed in Montgomery County, compared to 480 who were receiving jobless benefits, up from 440 in July.

June’s numbers, which included an 8.8 percent jobless rate, had only 470 people unemployed.

A year ago in August, Montgomery County’s unemployment rate was up to 5.2 percent from 5.1 in July. Two hundred fewer people were without jobs at 280.

The jobless rate was the 15th highest out of the 99 reported counties. Mahaska, one of three counties with unemployment in double digits, leads the state at 10.9 percent.

Harrison enjoys the lowest jobless rate at 3.7 percent.

Statewide, Iowa’s unemployment numbers increased from 6.5 to 6.8 percent. The .3 percent increase was the result of 31,000 additional people filing for unemployment benefits.

The 114,000 with jobs is also nearly 44,000 more than a year ago, when the unemployment rate was just 4.2 percent.

Despite the increases, Iowa Workforce Development’s director remains cautiously optimistic regarding the state’s economic outlook.

“Iowa’s payroll losses moderated substantially in August, a sign that the most severe part of the decline is behind us,” Elisabeth Buck said. “However, the state’s unemployment rate is likely to remain high into 2010, despite an optimistic forecast of improving economic conditions in the second half of this year.”