NYC unemployment rate rises at 7.8%
New York City's unemployment rate rose for the first time in four months, increasing to 7.8% in June from 7% in May, according to seasonally adjusted data from the state Labor Department. A year earlier, the rate was 8.3%.
The Labor Department's chief economist, Stephen Kagann, called the rise a statistical anomaly and not necessarily an indication that the economy is weakening. He noted that claims for unemployment benefits declined in the city in June. City Comptroller William Thompson cautiously echoed the optimism, saying that, “The rise in the unemployment rate is possibly a good sign if it means that previously discouraged workers are now back in the job market.”
However, Mr. Thompson noted that 32,300 more New Yorkers were looking for work in June and couldn’t find a job, bringing the total unemployed to 288,400--the first increase in the number of unemployed since January. At the same time, the city gained 3,500 jobs—a 1.2% annualized increase compared with May, seasonally adjusted. That compares with a 1% increase for the nation. The private sector gained 6,100 jobs as the government sector lost 2,600 jobs.
Copyright 2004, Crain Communications, Inc |
