High water brings flood of new claims for job benefits

Published 11:44 am Thursday, June 23, 2011

First-time claims for unemployment insurance benefits shot up nearly 457 percent in Warren County during the Mississippi River’s historic rise in May, helping the county’s jobless rate to mirror rises in 10 of 11 river counties in the state.

Joblessness in Warren County rose to 11.7 percent during the month, up five-tenths of a point from April, according to totals released Wednesday by the Mississippi Department of Employment Security. Shuttered doors at two casinos, LeTourneau Technologies and International Paper’s Vicksburg mill fueled the county’s 699 initial claims for the month, said Terry Hodges, branch director for the Vicksburg WIN Job Center.

“We expect those numbers to go down,” Hodges said.

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Shifts resumed for LeTourneau’s 600 or so workers in the past two weeks as water receded from the yard and access road, while International Paper’s 296 employees expect full production to resume next week.

Across the state, an increased jobless rate was reported at 25 of 82 counties.

In April, 153 first-time claims were filed in Warren County. In Mississippi, maximum benefits total $235 weekly.

In Vicksburg, DiamondJacks Casino reopened June 15 after being down for 36 days; Rainbow Casino reopened May 27 after a two-week closure.

Gaming floors at each casino were untouched by rising waters, though separate buildings at each property took on water for weeks. Ameristar and Riverwalk built temporary floodwalls and were open throughout.

Grand Station, formerly Horizon, opened June 2 but had been closed since March for renovations.

Warren County’s labor force was 22,470, up from 22,250 in revised totals for April. The number of unemployed stood at 2,630, up from 2,490 last month. Statewide, unemployment stood unchanged at 10 percent. Adjusted for seasonal factors in the workplace, the rate went from 10.4 percent in April, to 10.3 percent in May.

Rates in the river counties increased variably, from a tenth of a point in DeSoto and Wilkinson counties to more than 13 points in Tunica County, where nine of the state’s 19 riverfront casinos were closed most of May due to flooding. Issaquena County’s rate fell 2.6 points in May, to 17.2 percent.

“The majority of the over the month unemployment rate increases at the county level were due to flood conditions,” the agency’s Labor Market Information Department said.

Mississippi lost 4,000 non-farm jobs between May 2010 and last month, due to a drop-off of 11,100 jobs in government, state economist Darrin Webb said. The state shed 3,100 jobs during May, mainly in government. The gaming-heavy leisure and hospitality sector recorded the highest monthly gain.

Nationally, unemployment was 8.7 percent in May, unchanged from April. Seasonally adjusted, the rate went from 9.0 percent in April, to 9.1 percent in May.

Rankin County posted the state’s lowest unemployment in May, down two-tenths to 6.1 percent. Tunica’s 31.1 percent was the state’s highest, followed by Claiborne County’s 17.6 percent, up by 2.3 percent. Sharkey County’s rate was up to 10.7 percent for the month, up from 9.8 percent in April.

The Associated Press contributed to his report.