Idaho Economic Decline Deep in 2008 Will be Deeper 2009

Idaho Department of Labor January 2009 Issue / November 2008 Data
C.L. “BUTCH” OTTER, GOVERNOR ROGER B. MADSEN, DIRECTOR
ECONOMIC DECLINE DEEPER THAN EXPECTED IN 2008,
EVEN DEEPER IN 2009

The economic slowdown that was anticipated through 2008 was clearlydeeper than expected. This full-blown recession is mirroring the unemployment pattern of the 2001recession. But non farm jobs, which stalled but did not decline during the 2001 recession and its aftermath, have been dropping steadily since last spring and will continue falling behind year-earlier levels while the unemployment rate escalates through much of 2009. In December 2007 Idaho had the lowest unemployment rate in the nation at 2.7 percent.

There may have been some question about the quality of the jobs the economy was generating. But based on the fact that help-wanted signs were just about everywhere, there was no question that there were jobs for people who wanted to work.The change over the past year could not be more stark.

By December 2008 Idaho’s unemployment rate had shot up nearly four full percentage points to 6.6 percent. It was up nine-tenths of a point from November, when 18 other states had lower unemployment rates and the economy was beginning to shed jobs at a serious rate. No other state saw an unemployment rate increase as great as Idaho’s on a percentage basis, and only two states – Rhode Island and North Carolina – posted increases of more than Idaho’s three percentage points from November 2007 to November 2008.

For the first time ever, the Unemployment Insurance Trust Fund paid more than $6 million a week in benefits during the first three weeks of December, $7.5 million in the last week, $9 million in the first week of January and over $10 million in the second.

Non farm unemployment in Canyon County now stands at 7.9%, compared to 2.7% December 2007. Working people are already having to deal with all this bad news. Let's hope the local at state elected politicos don't make any serious blunders to exacerbate this situation further. Mr. Otter understands the dire straights Idaho is in and has delivered the message quite well in his State of the State address. The local politicos continue to be worrisome with their tax and spend ways.