WASHINGTON: Unemployment in the Shoals dropped by nearly 1 percent in July, but still was higher than most Alabama metropolitan areas, according to the latest figures available. The July rate in the Shoals was 6.4 percent, according to the Alabama Department of Labor. The June rate was 7.3 percent, and the rate in July 2015 was 6 percent. Only the Mobile Metropolitan Statistical Area reported a higher unemployment rate, at 6.7 percent. Anniston’s mark of 6.4 percent tied the Shoals, according to the labor statistics.
The nine other regions in the state designated as metropolitan areas had lower percentages, the figures show. The Daphne-Fairhope-Foley metro area had the lowest number at 5 percent. Statewide, the rate was 5.8 percent, and 5.7 percent when seasonally adjusted, according to the statistics. They were 5.1 percent nationally, dropping to 4.9 percent when seasonally adjusted.
Labor Department officials said they use seasonal adjustment techniques to remove influences that impact seasonal patterns, such as climate, school schedules and holidays. Doug Barrett, chairman of the University of North Alabama Department of Economics and Finance, said the unemployment numbers in the Shoals have been higher than those of other regions in the state for quite some time now.
“Part of that had to do with the industries that had been here traditionally,” Barrett said. “We’ve had some employers who have left, especially in the manufacturing sector. Those can be difficult to replace.” He said in some cases, the jobs that replace them do not meet the pay scales of the jobs lost.
Major losses in recent years include Hillshire Brands, which announced in 2014 it would close its 1,100-employee factory. HON Corp. also closed that year, leaving 190 workers unemployed. In 2013, International Paper announced it would close its Courtland plant, bringing a loss of more than 1,100 jobs. The Tennessee Valley Authority closed its Colbert Fossil Plant this year. That affected about 165 jobs, including contract workers.
July’s numbers represent a civilian labor force of 67,257 residents in the Shoals. A total of 4,322 of the residents were unemployed in July. Broken down by county, Colbert County’s unemployment rate in July was 6.8 percent. It was 6.2 percent in Lauderdale County. Those two counties comprise the Shoals’ MSA.
