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Unemployment in southwest Kansas lower than other areas
Published 10/27/2009 in Local News
By SHAJIA AHMAD
While unemployment rates continue to fluctuate across Kansas, they have remained fairly steady over the last year in this corner of the state, according to the latest statistics released by the state department of labor.
Some local officials said that's because of the region's basic agribusiness industries, which have not been as greatly impacted by the national economic recession as manufacturing and service industries in the eastern half of the state.
The statewide unemployment rate in September was 6.9 percent, down from a revised rate of 7.2 percent for August, but much higher than September 2008's 4.7 percent jobless figure, according to the Kansas Department of Labor.
In southwest Kansas, jobless rates have remained much more steady -- in the 3.5 to 5.5 percent range over the last year -- indicative of lower regional layoff rates, said Deb Scheibler, program director of Kansas WorkforceONE's Area 1 and who directs nine state workforce centers in 62 counties covering central and western Kansas out of the organization's Great Bend office.
"When you have a community tied around one industry, like the aircraft industry, you'll see layoffs affect the service industries, as well, like small businesses and grocery stores," Scheibler said. "In our neck of the woods, agricultural businesses haven't been hit as hard, and so we haven't seen as much of the trickle-down effect."
Gene Pflughoft, economic director for Grant County, agreed.
"Compared to Kansas as a whole, we don't have the huge ups or downs because of our basic industries," he said, referring to the county's feedlots, hog farms, farm labor and related agribusiness that employ Grant County residents.
In Grant County, unemployment rates have grown from 2.8 percent in September 2008 to 4.2 percent this September.
While the unemployment rate in the county has not skyrocketed -- about a 2 percent unemployment rate is considered full employment -- job losses in the area still are a concern, Pflughoft said.
Several dairies in the region are suffering or have shut down due to growing production costs and decreasing milk market prices, including Sante Fe Dairy in Grant County, which closed last year, and West Kansas Dairy in Hamilton County, which closed earlier this year.
In addition, much of the job-loss impact in the region has been felt in the service side of the oil and gas businesses, which are stagnant due to low prices. Little drilling is being done and pipeline being laid, Pflughoft said.
Most major industries, including manufacturing, professional and business services and trade and transportation reported statewide over-the-year losses, according to the KDOL's latest labor report released this month.
The manufacturing industry lost 26,400 jobs over the year, a 14.1 percent decrease. The majority of losses were in durable goods manufacturing, specifically in aerospace production.
Professional and business services lost 13,400 jobs over the year, a 9 percent decrease. The majority of losses were in administrative and support services, and professional, scientific and technical services, according to the KDOL report.
Trade, transportation and utilities lost 8,700 jobs over the year, a 3.3 percent decrease. The majority of losses in this industry were in retail trade.
In addition, the mining and logging industry reported modest job gains despite overall state losses, according to the KDOL.
Statewide job losses in these industries are primarily the effects of the recession, said KDOL labor economist Tyler Tenbrink in a release.
By the numbers
County
Unemployment Sept. Sept.
Rates (percent) 2009 2008
Finney 4.3 3.5
Grant 4.2 2.8
Gray 3.4 2.6
Greeley 4.5 3.8
Hamilton 4.2 3.4
Haskell 3.7 2.7
Kearny 4.5 3.1
Lane 3.4 3.4
Scott 3.2 3.0
Stanton 3.4 3.4
Stevens 5.3 3.6
Wichita 3.5 3.4
Source: Kansas Department of Labor
Take a closer look at the KDOL's latest labor report for unemployment rates by county and by metropolitan area.
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