County jobless claims reach record

KU study reports usage of unemployment insurance up by 26 percent in 2002

The number of Douglas County residents filing for unemployment insurance reached a record high in 2002, according to a report released Wednesday by Kansas University.

In its annual economic review, KU’s Policy Research Institute said 4,614 Douglas County residents filed for unemployment benefits in 2002, up 26 percent from 2001.

KU researcher Luke Middleton said that likely meant Douglas County residents were having to search longer for a job in 2002 than in previous years.

“I think what that says is the labor market is not quite as stable as it has been in years past,” Middleton said.

Cheryl White, a manager with the Lawrence Workforce Center, said the 2002 record did not surprise her, and said it was too early to tell whether 2003 would be better.

“The regular customers that we see, which includes a lot of professional and managerial people, are definitely experiencing longer job searches,” White said. “Searches are probably running five or six months or longer for many people.”

White said business had increased at the center, which serves as a clearinghouse of information for job seekers. She said since early May the center had been seeing in excess of 100 people per day, making the period one of the busiest for the center.

Middleton was uncertain whether the economy would improve enough to make 2003 a better year than last year. He said key indicators for the economy were mixed. The amount of sales tax revenue the city has collected thus far remains flat, but the number of new homes built in the city is above 2002’s pace.

Lawrence resident Jennifer Elliott takes a test at the Lawrence Workforce Center, 2540 Iowa. Elliott is among the approximately 100 people per day the center is helping search for work. A Kansas University study released Wednesday reports claims for unemployment insurance in Douglas County reached a record high in 2002.

“It is still too early to tell,” Middleton said. “I think it has a chance to be a better year, but it is not a home run yet.”

Lynn Parman, vice president of economic development for the Lawrence Chamber of Commerce, said she was optimistic about the prospects for the remainder of the year.

But she said the war in Iraq slowed the number of companies that were looking at Lawrence for possible expansions or relocations.

“It is starting to pick back up again, but site visits are where people are still cautious,” Parman said. “We have a lot of people requesting information, but not a lot of test drivers, so to speak.”

The KU report also looked at wages. The gap between the average wage paid to a Douglas County resident and other Kansas residents grew. According to 2001 statistics, the most recent available, Douglas County workers earned an average wage of $23,724 per year, up from $22,876 in 2000.

The Douglas County wage was $5,803 less than the average Kansas wage. Middleton said that finding wasn’t surprising because the large number of retail and service sector jobs that serve university students drive the average wage numbers down.

But the report also finds that Douglas County is losing ground compared to the rest of the state. In 1991, the gap between Douglas County and state averages was $3,578.

“I think we need to do some more studies about why that’s happening,” Middleton said.

Parman said she thought the widening gap might be the result of the service and retail sector growing at a faster rate than the manufacturing and high-tech job sectors.

“We are a university community, and because of that, we have a very strong retail and service sector,” Parman said. “I think the numbers somewhat mask what the reality is.”