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Jobless Rate Plateaus at 6-Year High
Wednesday, September 02, 2009 6:00 AM


(Source: Tulsa World)trackingBy Laurie Winslow, Tulsa World, Okla.

Sep. 2--The Tulsa metro area's unemployment rate neither worsened nor improved in July as it held steady at 6.8 percent, according to information released Tuesday by the Oklahoma Employment Security Commission.

July's rate, however, remains at a six-year high. Aside from June, the last time the metro area recorded a rate as high occurred in June 2003, based on data from the U.S. Bureau of Labor Statistics.

In July 2008, the area had a 3.8 percent jobless rate.

Bob Ball, the economic research manager for the Tulsa Metro Chamber, said he thinks some companies are turning the corner with regard to shipment and sales.

"The idea that we'll see a turn doesn't mean we'll see a turn in unemployment immediately because there is that lag effect," Ball said. "As things get better and shipment and sales begin to pick up, businesses forestall adding new people because they're risk adverse. They're making sure things are in place before they put people on."

It's possible the area's jobless rate could rise and possibly reach 7 percent, Ball said.

The Tulsa area lost 3,500 jobs over the month, giving it a total nonfarm employment of 425,200 in July. That figure represented 6,400 fewer jobs than a year earlier, according to the OESC.

The Tulsa area's rate remained stable while both the Oklahoma City and Lawton metro areas saw their July rates drop to 5.9 percent and

5.3 percent, respectively.

Oklahoma City's unemployment rate remained the lowest in the nation among metropolitan areas with populations greater than 1 million, said Keith Hazelton, director of economic research for the Oklahoma Bankers Association, citing BLS data on his blog.

"Rebounding crude oil prices, which have been roller-coastering for more than a year, may be leading to increasing employment in the state's energy sector, although jobs gained in the oil industry likely are being offset partially by job losses in natural gas as prices briefly reached seven-year lows last month," Hazelton wrote.

Ball pointed out that Tulsa is an entrepreneurial-based metro area, while Oklahoma City is more public service-oriented, and positive employment trends are occurring in government.

Manufacturing jobs in the Tulsa area fell by 600 over the month and were down 5,200 from July 2008, the OESC reported.

"Hopefully we've kind of hit the bottom," said Lynn Flinn, president and managing partner of The Rowland Group of Staffing Cos.

Flinn noted that companies are still being conservative in regard to hiring, but a high demand exists for certain professional jobs and positions that are critical.

"We're seeing companies that are kind of preparing for the future and maybe upgrading their staff to ensure they've got the best people on their team," Flinn said.

Kelly Services has been seeing an increase in new applicants.

"In this market the demand for both temporary jobs and full-time employment is very competitive. Employers are able to choose from a pool of highly qualified people," said Cyndy Harnett, branch manager of Kelly Services in Tulsa, via e-mail.

She noted that the firm is recruiting certified teachers for substitute teaching positions with Bixby Public Schools and Catoosa Public Schools.

Flinn said she thinks Tulsa is positioned well and will continue to see some growth, although it may take a few more months for that to happen.

"I think we're hopefully heading in the right direction," she said.

The Tulsa metro area's unemployment rate neither worsened nor improved in July as it held steady at 6.8 percent, according to preliminary information released Tuesday by the Oklahoma Employment Security Commission. July's rate, however, remains at a six-year high. Aside from June, the last time the metro area recorded a rate as high occurred in June 2003, based on data from the U.S. Bureau of Labor Statistics. A year ago at the same time, the metro area had a 3.8 percent rate.

The Tulsa area lost 3,500 jobs over the month, giving it a total nonfarm employment of 425,200 in July. That figure was down 6,400 jobs from the same time a year ago.

Laurie Winslow 581-8466, laurie.winslow@tulsaworld.com

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Copyright (c) 2009, Tulsa World, Okla.

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