LIMA — Allen County’s jobless rate fell for the third consecutive month in July to 8.7%, a substantial improvement from April’s high of 20.5%. But behind those encouraging trends are declining labor force participation and stalling job growth, which suggest that the county’s unemployment situation has not improved as much as the jobless rate would lead one to believe.
Here’s a look behind the numbers:
While Allen County’s jobless rate dropped from 11% in June to 8.7% in July, preliminary estimates from the Bureau of Labor Statistics (BLS) and Ohio Department of Job and Family Services show no increase in employment during that same period, which remained at 43,300 for both months.
Instead, BLS data show a 1,200-person dip in Allen County’s labor force, which declined from 48,600 in June to 47,400 in July.
The decline in labor force participation was equal to the change in unemployment, which fell from 5,300 to 4,100 between June and July.
Taken together, the data suggest that more displaced workers are becoming discouraged, as temporary layoffs become permanent and the number of people seeking work still exceeds job openings.
Since April, an estimated 1,500 people have dropped out of Allen County’s labor force, according to preliminary BLS estimates. About 4,500 people here have returned to work since that time.
