Employment Increases in Most States During May 2010

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The encouraging employment news for April 2010 continued in May. Regional and state unemployment rates showed a decrease in most cases. Indeed, 37 states and the District of Columbia saw their unemployment rates edge lower, helping bring the national unemployment rate down to 9.7 percent. This happened as jobs were added to the economy in a number of states.

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Texas showed why it continues to be a bright spot on the jobs front by adding 43,600 jobs. Hiring is taking place again in California, which saw an addition of 28,300 jobs to the payrolls. New York, Florida and Virginia also saw significant job creation.

Even in states where the number of jobs decreased, the numbers were not too large. New Mexico saw the biggest reduction in jobs, with 1,700, followed by South Dakota with 800 job losses and Idaho with 200 job losses. The reduction in job losses is a sign that the employment situation has likely bottomed out.

Michigan is no longer the state with the highest unemployment rate; Nevada has claimed that position in May. Additionally, the job losses in South Dakota may mean that the state could lose its current position as having the second lowest state unemployment rate.

While the news is encouraging, it is important to realize that many of the jobs added to the economy in May actually came from temporary hiring for the U.S. Census. While the reduction in job loss may point to stability in the employment market, sustainable job growth is still a big question mark.