Jobless rate static here

May 21--The unemployment rate did not change in Morgan or Limestone counties in April, and it dropped slightly in Lawrence County.

Morgan County remained flat at 8.8 percent from March to April, according to data released Friday by the state Department of Industrial Relations. In April 2010, Morgan County had 9.5 percent unemployment.

Limestone County also was unchanged from March to April, at 7.7 percent.

Lawrence County's unemployment rate improved from 10.3 in March to 10.2 percent in April.

While the results did not suggest a rapidly recovering economy, an economist saw positive signs in the data.

"Unemployment rates in all three counties either remained flat or declined, despite the fact that there were more people looking for work," said Ahmad Ijaz, an economist with the University of Alabama Center for Business and Economic Research.

In all three counties, the data showed an expansion of the labor force. Ijaz said this is typical of an economic recovery, because as jobs become more available people who had given up on a futile job search re-enter the labor market. Since the unemployment rate is calculated using the size of the labor force, new job seekers tend to increase the unemployment rate until they find jobs.

In all three counties, however, the market was able to absorb the increased labor force in April.

"Overall the data shows that the economy of the area is improving, albeit at a very modest pace, while payrolls continue to lag the overall pace of economic growth," Ijaz said. "It's not just a unique case for Decatur; it's the same story for the state and the rest of the nation."

Ijaz cautioned that the unemployment rate can be deceptive.

"In the household survey they just ask, 'Do you have a job?' It does not matter if you are working for an hour a day, you are considered employed," Ijaz said.

Statewide, the unemployment rate -- not seasonally adjusted and thus comparable to county data -- was unchanged at 9 percent, compared to 9.3 percent in April 2010. The seasonally adjusted rate crept up in April, from 9.2 to 9.3 percent.

"It appears that Alabama followed the national trend this month, as we experienced a slight increase in the unemployment rate," said Tom Surtees, director of the Department of Industrial Relations, in a statement. "These kinds of minor fluctuations are to be expected as we emerge from a recession."

The seasonally adjusted unemployment rate in the United States increased from 8.8 to 9 percent.

The rates released Friday do not include the impact of the April 27 tornadoes, which temporarily left many in North Alabama without work. Ijaz predicts the unemployment rate in May will rise in areas of the state affected by the storms.

"Most likely we will see an increase in the unemployment rate for May because of the businesses that were affected by tornadoes, but that would just be a short-term impact," Ijaz said. "With rebuilding and reconstruction, employment should return to its normal levels."

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