The state’s unemployment rate rose to 5 percent in August as agricultural employment dropped and student workers returned to school, rates for Oktibbeha county were steady at 2.8 percent. Announced by the Mississippi Employment Security Commission, rates for August were slightly below the national average, with Mississippi at 4.9 percent and the nation at 5 percent. Both were increases from the previous month. “The August increase in the unemployment rate was expected,” Curt Thompson, executive Director of MESC, said. “Each year we usually see a small increase in the rate in August as agricultural work cuts back and students give up their summer jobs to return to school.”
The 5 percent rate was up from 4.7 percent in July, and the national unemployment rate was 4.9 percent. Thompson said an encouraging sign was that the August rate was significantly lower than last year. “Last August the rate was 5.8 percent while this year it’s eight-tenths of a percentage point lower.”
Job gains were posted in the lumber and wood products, metal products and education sectors of the economy. Construction, trade, services and transportation and utilities reported job losses. While Rankin and Lamar counties had remarkably low rates, at 2.2 percent and 2.3 percent respectively, Oktibbeha county was also very low.
“There are always layoffs when school is out in summer, as students go home to work,” Billy Hamilton, office manager for the Starkville Workforce Investment Network Job Center ,said.
With Mississippi State University being the largest employer in Starkville, there is a substantial increase in employment when school starts. Employers around town use WIN to find workers, and WIN helps about one-fourth of its applicants find work. In the Starkville area, the unemployment rate dropped from July, when it was 2.8 percent.
“It’s a good question as to why that happened,” Hamilton said. “School started back in late August, causing gains for restaurant, hotel, and personal industries locally. Population for Starkville doubles when school is in.”
Employers acknowledge the fact that being in a college town gives employment advantages.
“Colleges help, and it’s a given that all the college counties in Mississippi have lower unemployment rates than other counties,” John D. Reed, manager of the Columbus office of WIN, said. “Oktibbeha county is doing relatively well, and you can’t compare just one county to the state average. Also, while there is no constant in employment-people are in and out all the time-Oktibbeha county remains stable and is doing great. Some counties have over 10 percent unemployment.”
Steve Dixon, a senior business major, has experienced looking for a job in Oktibbeha county, and has had no success.
“I looked right at the beginning of school, but I was unable to find a job,” Dixon said.
Dixon said he also thinks the decrease in unemployment percentages is caused by the opening of new restaurants, namely Ruby Tuesday, and the new hotel right behind it, Holiday Inn Express.
“Those two new businesses alone should have increased employment opportunities for Oktibbeha county in a small, yet significant, way.” While Reed offers no predictions for the future months, Hamilton offers his opinion.
“The recent tragedies will cause a trickle-down effect. We won’t make the 3 percent rate, but we’ll go up to 2.7 percent,” Hamilton said. Thompson said he expects rates to drop in September as agriculture adds jobs for harvest and education sector workers return to school.
He said any effects on the Mississippi workforce from Sept. 11 tragedies will be shown in October’s unemployment numbers.