Unemployment: 10 Year High

The Boston Globe reports that the unemployment rate in Maine is the highest it has been in 10 years to 5.4 percent for May.

Labor Commissioner Laura Fortman said last month's increase was "unusually large," adding that several more months of data will be needed to see if a trend develops. A spokesman for Gov. John Baldacci called the increase "alarming."

Is it really alarming? I don’t think so. But maybe I’m pre-conditioned to be pessimistic working at a newspaper that is going through another round of layoffs. Or that I’m paying $4.09 a gallon at the pump.

The State Labor Department officials are also blaming the high numbers on a fluke: the unemployment data was gathered the week after college students ended their academic-year jobs and therefore hadn’t yet started their summer jobs. Normally the data is taken before school gets out. Whatever.

The counties of Piscatiquis and Washington have the highest rate of unemployment while Cumberland and York have the lowest.

The truth is this – people are spending less money on incidentals because the things they need – food and gas – are becoming more and more expensive. In a state like Maine that relies on tourism to drive the economy, this isn’t shaping up to be such a hot summer – no pun intended.

The rest of New England isn’t doing so well, either. Rhode Island has the highest unemployment at 7.2 percent with Connecticut at 5.4, Massachusetts at 4.9 and New Hampshire at 4 percent. Vermont figures were unavailable. Maybe they’re embarrassed.

MaineBusiness.com