Region’s unemployment down, but still high

LIMA - The uncertain economy and a stranglehold on credit are keeping the region's unemployment numbers at a 15-year high.

The Ohio Department of Job and Family Services released the state's August unemployment figures Tuesday. Almost all county's in the region saw a dip in the numbers, but unemployment remains high.

In Allen County, unemployment dropped from 8.6 percent in July to 7.8 percent in August. But even with the drop, unemployment remains as high as it's been since the early 1990s and almost 2 percentage points higher than it was at this time last year.

Allen Economic Development Group Director Marcel Wagner said the numbers reflect a weak national economy and a continuing problem pairing employers with the workers they need.

"It's kind of a two-edged sword. We still have companies looking for people with specific skills they can't find, but there are also people who don't have the skills looking for work," Wagner said.

Unemployment has been on the rise locally and across the state since early this year. Last month, Ohio's unemployment rate was 7.4 percent, up from 7.2 percent in July. That translates to a loss of 3,700 jobs in one month.

"Ohio's labor market continued to mirror the national trend by showing signs of decline in August," ODJFS Director Helen Jones-Kelley said. "Larger decreases in the goods-producing sectors resulted from continued losses in manufacturing and durable goods."

Wagner said he believes there are large and small businesses out there planning to expand, but the crisis in housing and on Wall Street has forced them to put the plans on hold.

"We see businesses out there that are reluctant to make investments in the current climate. They're interested in making investments, but I think they're waiting until this current crisis works itself out," Wagner said. "And it's extremely difficult for small businesses and startup businesses to get the credit they need right now. Hopefully, that's something that will get sorted out."

Of the nine counties in the region, only Van Wert and Logan counties saw increases in unemployment. With 10.2 percent unemployment, Van Wert has the region's highest rate. Mercer County has the region's lowest rate with 5.4 percent.

The number of workers unemployed in Ohio in August was 445,000, up from 432,000 in July. The number of unemployed has increased by 106,000 in the past 12 months from 339,000. The August unemployment rate for Ohio was up from 5.7 percent in August 2007.

The U.S. unemployment rate for August was 6.1 percent, up from 5.7 percent in July.