Mesa County jobless rate seesaws up

Phil Castle, The Business Times

Curtis Englehart

The unemployment rate has seesawed back up to double digits in Mesa County even as the labor force has grown to its highest level in eight years.

Payrolls have  increased as more businesses reopen, but the number of people looking for jobs also has increased. At the same time, more people are relocating to Mesa County to make homes in a place that’s fared comparatively well in the midst of the coronavirus pandemic, said Curtis Englehart, director of the Mesa County Workforce Center in Grand Junction.

According to the latest estimates from the Colorado Department of Labor and Employment, the seasonally unadjusted unemployment rate climbed to 10 percent in Mesa County in June, up nine-tenths of a point from a revised 9.1 percent for May. The May rate dropped from 12.6 percent in April. At this time last year, the rate stood at 3.6 percent.

Mesa County payrolls increased 2,627 from May to June to 71,366. The number of people counted among those unsuccessfully looking for work rose 1,070 to 7,960.

The labor force, which includes the employed and unemployed, grew 3,697 to 79,326. Englehart said that’s the highest level since 2012.

Compared to a year ago, payrolls have declined 2,008. The ranks of the unemployed have increased 5,201. The labor force has grown 3,193.

Englehart attributed payroll gains in June to businesses reopening or increasing operations and bringing back staff. “That’s good to see.”

A few businesses also are hiring, he said, especially for openings in the health care sector.

A total of 617 job orders were posted at the Mesa County Workforce Center in June, up slightly from 602 for the same month last year. For the first half of 2020, 2,862 orders were posted. That’s down almost 25 percent from the first half of 2019.

While the ranks of the unemployed also increased in June, initial claims for unemployment benefits have trended downward on a weekly basis since peaking at 2,583 for the week ending March 28, Englehart said.

For the week ending June 27, 179 claims were filed. That’s a 16-week low that’s comparable to the weekly claims following the seasonal layoffs after Christmas,

Looking ahead, Englehart said the unemployment rate could move higher for July given the layoffs of a total of nearly 500 people at StarTek and EcoGen. “Those will be big hits.”

In a broader sense, a rebound in the labor market will depend on how the pandemic progresses in Mesa County, he said.

While COVID-19 cases have increased, hospitalizations remain low. And Mesa County has fared better than other areas even as a variance from statewide orders has eased restrictions, he said.

Englehart said he’s hopeful businesses and individuals will continue to take steps to slow the spread of coronavirus. “We can try to make this a quicker road to recovery.”

Meanwhile, seasonally unadjusted unemployment rates also rose in most neighboring Western Colorado counties in June: 1.8 points to 7.8 percent in Rio Blanco County, 1.6 points to 9.6 percent in Delta County and a point to 10.3 percent in Montrose County. The jobless rate retreated four-tenths of a point to 9.7 percent in Garfield County.

The statewide seasonally adjusted unemployment rate rose three-tenths of a point to 10.5 percent.

Nonfarm payrolls increased 55,000 from May to June with the biggest gains in the leisure and hospitality; trade, transportation and utilities; and professional and business services sectors.

Since May, payrolls have regained 126,000 of the 343,300 jobs lost between February and April. Compared to a year ago, though, payrolls have decreased 183,000 with the biggest losses in the leisure and hospitality; trade, transportation and utilities; and education and health services sectors.

The average workweek for employees on private, nonfarm payrolls decreased six-tenths of an hour  over the past year to 33.7 hours. Average hourly earnings increased  15 cents to $30.34.