State labor secretary: Unemployment highest since 1983

Unemployment rate in Kansas at 26-year high

? Going into the Labor Day weekend, Kansas was straining under the worst jobless situation in more than a generation.

The state unemployment rate stood at 7.7 percent, the highest it has been since January 1983.

More than 100,000 Kansans are receiving unemployment benefits, compared with 23,000 this time last year.

Kansas has lost 30,000 jobs since April.

And by the end of the year, the state’s unemployment trust fund likely will be depleted. If that happens, Kansas will have to borrow from the feds to pay unemployment claims.

“This recession has imposed the greatest burden on our unemployment insurance system since it was created more than 70 years ago,” said Jim Garner, state labor secretary.

Even though Kansas’ unemployment rate is usually below the national average — which now is at 9.7 percent — Garner said he expects high unemployment to affect Kansas for many months.

“I can’t make that prediction, when the labor market will turn around,” he said.

And, he said, he expects that by next year unemployment premiums paid by businesses will increase.

Garner said the economy is showing signs of recovery, although he added many businesses won’t start re-hiring until access to loans improves.

He said the federal stimulus package, in the form of increased and expanded unemployment benefits, has helped jobless Kansans and pumped money into the economy.

Legislation approved this year that extends jobless benefits to those in approved training programs will pay off in the long run “as it prepares those who are out of work to fill high-demand positions,” Garner said.

And, he said, it was important that Kansas position itself to take advantage of growth in renewable energy jobs.

Gov. Mark Parkinson, in an Internet address, acknowledged the tough economic times, pledged to work on job creation and urged Kansans to honor workers on Labor Day.

“The natural forces of the economy appear to be turning the country around. But regardless, these are tough times and we have a long way to go toward true recovery. In these tough times it’s more important than ever that we come together to thank our laborers,” he said.