Friday, October 21, 2011

Payrolls Decline in 25 States , Led by North Carolina; Florida Tops Gains

Payrolls fell in 25 U.S. states in September, led by North Carolina and Ohio, a sign the weakness in the job market is broad-based.

Employers cut staff by 22,200 in North Carolina last month and by 21,600 in Ohio, according to Labor Department data issued today in Washington. The report also showed the jobless rate decreased in 25 states. Nevada continued to lead the nation in unemployment with a rate of 13.4 percent.

The economy needs to generate faster sustained job growth to lower unemployment and spur the consumer spending that makes up about 70 percent of the economy. A Labor Department report on Oct. 7 showed employers added 103,000 payrolls last month, almost half of them telecommunications workers returning from a strike, and the jobless rate was 9.1 percent for a third month.

“The majority of states will likely continue to grapple with a high unemployment for the foreseeable future as economic activity stagnates,” Anika Khan, an economist at Wells Fargo Securities Inc. in Charlotte, North Carolina, said before the report. “A genuine recovery will not likely begin until employment and income growth stabilize.”

After Nevada, the jobless rate was highest in California at 11.9 percent and Michigan at 11.1 percent.

The biggest job gains last month occurred in Florida, where employers boosted payrolls by 23,300. Employment in Texas rose by 15,400 workers and increased in Louisiana by 14,100.

Over the past 12 months, 47 states gained jobs, while two, Delaware and Georgia, showed a decline.