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Ariz. jobless rate remains at 9.1 percent in Sept.

By Paul Davenport
Associated Press Writer / October 15, 2009

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PHOENIX—Arizona's unemployment rate has remained basically unchanged for the second straight month as the state's economy saw a sub-par jobs gain in September.

The state's seasonally adjusted unemployment rate for September was 9.1 percent, the Commerce Department reported Thursday. That's identical to the August rate and down only slightly from 9.2 percent in July.

The national unemployment rate for September was 9.8 percent, up slightly from 9.7 percent in August.

The state added 10,600 jobs in September. The department called that a "weak seasonal increase" that was the second smallest September gain since 1990. September job gains are typically three to four times larger, the department said.

The recent relative stability of the monthly unemployment rate in the past several months was "a hopeful sign," said Lisa Danka, deputy assistant director. "It was jumping 0.3, 0.4, 0.5 (percentage points) previously."

However, the unemployment rate could rise as an improving economy prompts discouraged people to re-enter the work force and be counted in the state's survey of households as seeking jobs, Danka said.

Education hiring reflected in two economic sectors -- government and education/health services -- provided the only job gains in September, with approximately 22,000 more jobs in public and private schools.

September was "basically Part 2 of `school is back in session,'" Danka said.

However, the state now has an estimated 8,600 fewer jobs in education than a year ago, Danka said. She cited budget cuts and possible enrollment changes forced by foreclosures as possible reasons.

The other nine economic sectors posted net losses, the department said.

The sectors reporting the biggest losses in September were trade, transportation and utilities (down 4,200 jobs, mostly in retail trade), and leisure and hospitality (down 2,400 jobs), with the leisure sector's loss attributed to continued weakness in tourism.

The state has lost 195,800 jobs since September 2008, when the unemployment rate was 6 percent.

Around the state, Yuma had the highest local unemployment rate in September at 20.7 percent, followed by Lake Havasu City-Kingman at 10.6 percent and Prescott at 9.5 percent. Phoenix's rate was 8.5 percent, Tucson's was 8.2 percent and Flagstaff's was 8.3 percent.