BIRMINGHAM, Al.
Alabama's jobless rate fell sharply in October, prompting state officials to point to a spreading economic recovery. Metro Birmingham's rate also tumbled.
The Birmingham-Hoover jobless rate was 8 percent last month, down from 8.9 percent in September, according to figures from the Alabama Department of Industrial Relations. It was the fourth straight monthly decline for Alabama's largest metro area since the rate hit 9.7 percent in June.
Alabama's jobless rate was 9.3 percent, down from 9.8 percent in September.
"The state's economy is improving, albeit at a modest pace," said Ahmad Ijaz, an economist at the University of Alabama. "The state added 9,700 nonfarm jobs in October. Some of them may just be temporary hires for the Christmas season."
Tom Surtees, director of the Alabama Department of Industrial Relations, said the jobless rate decline was a positive sign for the state's economy. Surtees said initial unemployment claims, totaling 23,400 last month, remain far below the 31,444 filed in October 2008 at the height of the recession.
"Our initial unemployment claims are lower than they have been over the past four years, as is the amount of our benefit payments," Surtees said. "We are certainly not out of the woods yet, but we are optimistic that we will continue to see positive hiring trends for the rest of the year."
A sponsor of Alabama's tough new immigration law on Friday credited the law with the steep drop in the state's jobless rate.
"Despite how desperately illegal immigrant sympathizers have tried to portray this law as somehow harmful to our state's economy, the truth is more Alabamians are working today thanks in part to our decision to crack down on illegal immigration," Alabama House Majority Leader Micky Hammon, R-Decatur, said in a statement.
Hammon pointed to Marshall County, which he called "a known hotbed for illegal immigrant labor." He said the rate there was 8.1 percent for October, down from 8.8 percent in September and 10 percent in June, when the immigration law was signed.
Ijaz, the University of Alabama economist, said he believes it's a stretch to credit the immigration law for Alabama's declining unemployment figure. He said it is too soon to tell whether the law is actually creating jobs for state residents.
"The decline in unemployment is mostly because of seasonal hiring and fewer workers in the labor force," he said.
All 67 Alabama counties reported a decline in unemployment in October. Shelby County had the lowest rate at 6.1 percent, down from 6.8 percent in September. The highest rate was Wilcox's 19 percent, down from 21.4 percent a month earlier. The rate in Jefferson, Alabama's most populous county, fell from 9.5 percent in September to 8.6 percent last month.
Mixed signal
John Norris, managing director at Birmingham's Oakworth Capital Bank, said the October employment numbers sent a mixed signal. While the Alabama and Birmingham metro economies did produce some jobs, Norris said a decline in the labor force is the real reason the state and local unemployment rates fell.
"Had the labor force stayed the same, the Alabama unemployment rate would have been 9.6 percent as opposed to 9.3 percent," Norris said. "The same can be said of Birmingham. We are creating some jobs, but the real secret to the declining unemployment rate is a decrease in the number of people actively looking for work. Seasonal work is certainly better than no work, but you don't fundamentally grow the economy with part-time hourly employment."
Mike Stockard, executive vice president of Elwood Staffing in Vestavia Hills, said it will be early 2012 before anyone can tell whether Alabama's economy has turned the corner. Stockard said most of the positions Elwood is filling are not full-time.
"The appetite to add full-time headcount is still just not there and the economy is still very fragile," he said. "Companies have seen large increases in revenue over the past few years because it is just easier for companies to have the flexibility to adjust headcount on short notice."
Alabama's jobless rate was 9.3 percent, down from 9.8 percent in September.
"The state's economy is improving, albeit at a modest pace," said Ahmad Ijaz, an economist at the University of Alabama. "The state added 9,700 nonfarm jobs in October. Some of them may just be temporary hires for the Christmas season." Tom Surtees, director of the Alabama Department of Industrial Relations, said the jobless rate decline was a positive sign for the state's economy. Surtees said initial unemployment claims, totaling 23,400 last month, remain far below the 31,444 filed in October 2008 at the height of the recession.
"Our initial unemployment claims are lower than they have been over the past four years, as is the amount of our benefit payments," Surtees said. "We are certainly not out of the woods yet, but we are optimistic that we will continue to see positive hiring trends for the rest of the year."
A sponsor of Alabama's tough new immigration law on Friday credited the law with the steep drop in the state's jobless rate.
"Despite how desperately illegal immigrant sympathizers have tried to portray this law as somehow harmful to our state's economy, the truth is more Alabamians are working today thanks in part to our decision to crack down on illegal immigration," Alabama House Majority Leader Micky Hammon, R-Decatur, said in a statement.
Hammon pointed to Marshall County, which he called "a known hotbed for illegal immigrant labor." He said the rate there was 8.1 percent for October, down from 8.8 percent in September and 10 percent in June, when the immigration law was signed.
Ijaz, the University of Alabama economist, said he believes it's a stretch to credit the immigration law for Alabama's declining unemployment figure. He said it is too soon to tell whether the law is actually creating jobs for state residents.
"The decline in unemployment is mostly because of seasonal hiring and fewer workers in the labor force," he said.
All 67 Alabama counties reported a decline in unemployment in October. Shelby County had the lowest rate at 6.1 percent, down from 6.8 percent in September. The highest rate was Wilcox's 19 percent, down from 21.4 percent a month earlier. The rate in Jefferson, Alabama's most populous county, fell from 9.5 percent in September to 8.6 percent last month.
Mixed signal
John Norris, managing director at Birmingham's Oakworth Capital Bank, said the October employment numbers sent a mixed signal. While the Alabama and Birmingham metro economies did produce some jobs, Norris said a decline in the labor force is the real reason the state and local unemployment rates fell.
"Had the labor force stayed the same, the Alabama unemployment rate would have been 9.6 percent as opposed to 9.3 percent," Norris said. "The same can be said of Birmingham. We are creating some jobs, but the real secret to the declining unemployment rate is a decrease in the number of people actively looking for work. Seasonal work is certainly better than no work, but you don't fundamentally grow the economy with part-time hourly employment."
Mike Stockard, executive vice president of Elwood Staffing in Vestavia Hills, said it will be early 2012 before anyone can tell whether Alabama's economy has turned the corner. Stockard said most of the positions Elwood is filling are not full-time.
"The appetite to add full-time headcount is still just not there and the economy is still very fragile," he said. "Companies have seen large increases in revenue over the past few years because it is just easier for companies to have the flexibility to adjust headcount on short notice."
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