State jobless rate falls

Unemployment at 4.4 percent

? A return of warm weather fueled a bright state economic report for May and optimism that the worst problems may be over.

May’s jobless rate declined to 4.4 percent from a revised 4.8 percent in April. That compares with 6.1 percent unemployment nationally. Lawrence’s rate was 4.2 percent, down from 4.4 percent in April.

“That’s a little bit larger than we expected it to drop,” said Bill Layes, chief of labor market information for the Department of Human Resources. “It’s promising.”

Employment gained about 4,000 jobs in May, with construction, government and leisure or hospitality sectors leading the way. Layes said those sectors traditionally gained in May as warm weather brought a return to outdoor activities.

In addition, the number of unemployed Kansans dropped by 5,900 to 64,000. First-time jobless claims fell, as well, to 12,817.

Those numbers will increase in June, Layes said, as the effects of a seven-week furlough for 6,000 workers at Wichita’s Cessna aircraft plant. Wichita’s jobless rate was 5.6 percent in May, down from 6 percent in April.

Additional layoffs were expected to be announced Friday by Boeing as the company approaches its goal for reducing its worldwide work force by 30,000 year’s end, including 5,000 in Wichita. Friday’s notices were not expected to exceed 50.

The influx of students seeking summer employment also will inflate the June jobless rate, Layes added.

Still, Layes said the May report and a recent employment survey give reason for optimism.

“Manufacturing added some, and that’s a good sign, but we’re still concerned about Wichita because of their rate,” said Layes, noting that more than 16,000 people are still without work.

Manufacturing added 1,100 jobs in durable goods production, as transportation workers returned from temporary layoffs. Construction added 1,800 jobs, while the growing leisure and hospitality sector added 1,900, pushing the number to more than 108,800.

Elsewhere in the state, Topeka’s jobless rate dropped to 3.6 percent from April’s 3.8 percent and the Kansas portion of the Kansas City metropolitan area, 5.5 percent, down from 6 percent.

A survey released earlier in the week by Manpower Inc., found that on average 17 percent of the businesses in Kansas planned to add workers from July through September. Another 6 percent would cut staffing, while 76 percent planned no change.

Activity is expected to most promising in the Topeka and Hutchinson, where 20 percent more of the businesses planned to add staff than decrease staff. Lagging behind were Lawrence and Manhattan, with a net of 3 percent adding jobs.

“The report wasn’t robust, but at least it wasn’t the other way, either,” Layes said.