Unemployment rate takes a 'typical' hike

By ROBBIE GOODRICH
The Daily Sentinel

Friday, July 20, 2007

Unemployment in Nacogdoches County followed its usual summer spike from May to June, an annual trend that is attributed to students and others associated with public schools and SFA entering the workforce and searching for summer employment, according to Judy McDonald, president and CEO of the Nacogdoches Economic Development Corporation.

"It's the typical June hike because of people arriving in the workforce in summer after school is out — students and teachers in public school and in higher education," McDonald said.

Unemployment in Nacogdoches County climbed from 3.6 percent in May to 4.8 percent in June. However, the June rate remains below the June 2006 rate of 5.6 percent, according to information released Friday by the Texas Workforce Commission. In the city, the rate jumped from 3.8 percent in May to 5.3 percent in June. A year ago, the June rate for the city was 6.4 percent.

"The trend throughout this year is that unemployment has been lower than what it ordinarily has been in the past," McDonald said.

But that trend could take a substantial turn next month, as hundreds of Pilgrim's Pride employees who cannot show a legal Social Security number are expected to be laid off.

"If that does happen, our unemployment will rise, although the numbers won't show it," McDonald said.

Last month, a federal "guest worker" bill stalled in Congress, blocking the path to citizenship for illegal immigrants and migrant workers. As a result, industries across the nation feared they would be forced by the federal government to make changes.

While Pilgrim's Pride officials decline to comment on what they describe as a personnel matter, Hispanic community activist Gabriella Zavalla said that 40 people were let go at the Nacogdoches plant on one recent day, followed by about 100 another day, according to a previously published story in The Daily Sentinel.

KTRE-TV reported that Workforce Solutions Deep East Texas has been told by Pilgrim's Pride human resources to expect a massive layoff, quoting site manager Melony Brown as saying an estimated 600 people will be laid off from the Lufkin plant and an estimated 800 will be laid off in Nacogdoches.

When contacted by The Sentinel for comment, Brown said calls about the Pilgrim's Pride layoffs must now be directed to the Workforce Solution's board office. Charlene Meadows, executive director, said she could only read a prepared statement and had no additional comment beyond that.

"Workforce Solutions Deep East Texas does not comment on employment issues without specific consent of that employer."

Pilgrim's Pride employs 2,438 people, according to the latest NEDCO figures.

Across the state, the June seasonally adjusted unemployment rate remained at 4.1 percent, unchanged from May, its lowest point since the current series began in 1976. The unemployment rate is down from 4.9 percent a year ago.

"This remarkably low unemployment rate reflects the strength of the Texas economy," TWC Chairwoman Diane Rath said in a press release. "Workers have abundant opportunities as Texas employers continue to expand."

In Angelina County, the rate also increased from 3.9 percent in May to 4.6 percent in June. The rate was at 5.2 percent a year ago. In Lufkin, the rate increased from 4 percent in May to 4.7 percent in June. The June rate a year ago was 6.4 percent.

June unemployment for other counties surrounding Nacogdoches was:

* Cherokee — 5.2 percent, down from 4.4 percent in May.

* Rusk — 4.7 percent, up from 4 percent the previous month.

* San Augustine — 5.9 percent, up from 5.1 percent in May.

* Shelby — 4.9 percent, up from 4 percent in May


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