Local Jobless Rate Highest in a Decade

Fueled largely by thousands of teachers and students looking for work, the Orange County unemployment rate in July jumped to its highest level in a decade--7.4% from a revised rate of 6.7% a month earlier.

By comparison, the previous July’s unemployment rate was 6.1%.

An additional 12,200 people joined the jobless rolls last month--bringing the total number of unemployed people in the county to 103,600, according to preliminary figures released by the state Employment Development Department. However, there also were a greater number of people working in July as the employment figure climbed 16,600 from June to 1,298,800.

“Numbers don’t lie, but this is one case where the figures are misleading,” said Anil Puri, an economist at Cal State Fullerton. “The unemployment rate has gone up because a lot of people who were discouraged looking for jobs have gone back looking for jobs. And once they do, they get counted in the labor force.”

In the 12 months that ended July 31, 19,100 more people were looking for work than in July, 1992.

The Orange County job scene remains healthier than that of the state and nation. California had a jobless rate of 9.9% in July, while the U.S. unemployment was at 8.9%.

In a separate report on Orange County payrolls--the number of jobs at area companies--employers cut jobs in manufacturing, retail, financial services and real estate during July. The greatest reductions were the 9,400 state and local education positions eliminated from government payrolls.

There was a modest increase in the number of jobs in the high-tech and tourism industries and in chemical manufacturing.

“We shouldn’t put too much weight on the numbers,” Puri said. “If you look since May, the total wage and salary employment is fairly stable; adjusting for seasonal factors there isn’t much difference. We’re in a holding pattern.”