Vermont’s unemployment rate increased to 2.6 percent in December

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Vermont’s unemployment rate increased to 2.6 percent in December

Tue, 01/24/2023 - 4:10pm -- tim

by Timothy McQuiston, Vermont Business Magazine Today, the Vermont Department of Labor released data on the Vermont economy for the time period covering December 2022. According to household data, the seasonally adjusted statewide unemployment rate for December was 2.6 percent. This reflects an increase of one-tenth of one percentage point from the prior month’s revised estimate. The civilian labor force participation rate was 61.8 percent in December, up one-tenth of one percentage point from the prior month. The data show that while the Labor Force (961) and Employment (436) both increased significantly, the number of Unemployed also increased (525).

The comparable United States rate in December was 3.5 percent, a decrease of one-tenth of one percentage point from the revised November estimate.

Vermont is tied for the 6th lowest rate in the nation. New Hampshire is 7th at 2.7 percent. Utah is lowest at 2.2 percent and Nevada is highest at 5.2 percent.

Labor Commissioner Michael Harrington said: “The preliminary data released today shows that 2022 showed growth in statewide employment as we gain greater distance from the start of the recession caused by the COVID pandemic. However, taking a deeper look, we see uneven economic growth across the state where the Burlington labor market area appears to be capturing approximately 90% of the job gains in the past year. This is why the State of Vermont and the Department of Labor continue to work with employers and partners across the state to improve the economic outcomes in rural areas. Local field staff can help employers with their recruitment efforts thereby supporting the economic vitality of all parts of the state. Students, jobseekers and businesses are encouraged to visit www.Labor.Vermont.gov/Jobs for information on events and services or visit one of our field offices today.”

State of Vermont Overview                        

The seasonally adjusted Vermont data for December show the Vermont civilian labor force increased by 961 from the prior month’s revised estimate (see Table 1). The number of employed persons increased by 436 and the number of unemployed persons increased by 525. The changes to the number of unemployed persons and the unemployment rate were statistically significant in the seasonally adjusted series.

The December unemployment rates for Vermont’s 17 labor market areas ranged from 2.1 percent in Burlington-South Burlington and Woodstock to 5.1 percent in Derby (note: local labor market area unemployment rates are not seasonally-adjusted – see Table 2). For comparison, the December unadjusted unemployment rate for Vermont was 2.7 percent, an increase of three- tenths of one percentage point from the revised unadjusted November level and an increase of two-tenths of one percentage point from a year ago.

Analysis of Job Changes by Industry             

Seasonally Adjusted (Table 3)

The seasonally-adjusted data for December reported an increase of 500 jobs from the revised November data. There was a decrease of 400 jobs between the preliminary and the revised November estimates due to the inclusion of more data. The seasonally-adjusted over-the-month changes in December were varied at the industry level. Those with a notable increase included: Administrative & Waste Services (+500 jobs or +3.9%) and Health Care & Social Assistance (+1,400 jobs or +2.9%). Industries with a notable decrease included: Arts, Entertainment & Recreation (-500 jobs or -10.4%) and Accommodation & Food Services (-500 jobs or -1.8%).

Not-Seasonally-Adjusted (Table 4)

The preliminary ‘not-seasonally-adjusted’ jobs estimates for December showed an increase of 2,700 jobs when compared to the revised November numbers. As with the ‘seasonally-adjusted’ data, this over-the-month change is from the revised November numbers which experienced a decrease of 100 jobs from the preliminary estimates. The broader economic picture can be seen by focusing on the over-the-year changes in this data series. As detailed in the preliminary ‘not- seasonally-adjusted’ December data, Total Private industries increased by 2,800 jobs (+1.1%) over the year and Government (including public education) employment increased by 1,000 jobs (+1.8%) in the past year.

Weekly Unemployment Claims (See Tables Below)

For the week of January 14, 2023, the Vermont Labor Department is reporting that claims have fallen back to their more usual level after the typical holiday-season layoffs. 

Regular new UI claims are down 15 for the week and down 368 from the same time last year for a total of 540. New and ongoing claims are at 4,250, down 109 for the week and down 949 for the year. There are still 101 pandemic-related active claims.

For the US last week, initial jobless claims fell by 15,000 to 190,000, according to the US Labor Department, as economists had expected them to increase slightly to 214,000. Despite the Fed's continued interest rate hikes and big tech layoffs, the labor market remains tight.

Unemployment Rates for States, Seasonally Adjusted
State December 2022(P)
rate
Rank

Utah

2.2 1

North Dakota

2.3 2

South Dakota

2.3 2

Florida

2.5 4

Minnesota

2.5 4

Nebraska

2.6 6

Vermont

2.6 6

New Hampshire

2.7 8

Alabama

2.8 9

Missouri

2.8 9

Montana

2.8 9

Idaho

2.9 12

Kansas

2.9 12

Georgia

3.0 14

Virginia

3.0 14

Indiana

3.1 16

Iowa

3.1 16

Hawaii

3.2 18

Wisconsin

3.2 18

Colorado

3.3 20

Massachusetts

3.3 20

South Carolina

3.3 20

New Jersey

3.4 23

Oklahoma

3.4 23

Louisiana

3.5 25

Rhode Island

3.5 25

Tennessee

3.5 25

Arkansas

3.6 28

Wyoming

3.7 29

Maine

3.8 30

New Mexico

3.9 31

North Carolina

3.9 31

Pennsylvania

3.9 31

Texas

3.9 31

Arizona

4.0 35

Kentucky

4.0 35

Maryland

4.0 35

Mississippi

4.0 35

California

4.1 39

West Virginia

4.1 39

Connecticut

4.2 41

Ohio

4.2 41

Washington

4.2 41

Alaska

4.3 44

Michigan

4.3 44

New York

4.3 44

Delaware

4.4 47

Oregon

4.5 48

District of Columbia

4.7 49

Illinois

4.7 49

Nevada

5.2 51

Footnotes
(P) Preliminary

Note: Rates shown are a percentage of the labor force. Data refer to place of residence. Estimates for the current month are subject to revision the following month.

The Unemployment and Jobs Report for January is scheduled to be released on Monday, March 13th, 2023 at 10:00 a.m.