Jobless rates on the North Olympic Peninsula increased in October, climbing past 7 percent in Clallam County and up to 5.9 percent in Jefferson County, as businesses responded to a faltering national economy by cutting payroll costs.
In Clallam County, unemployment rose from 6.7 percent in September to 7.2 percent last month, the state Employment Security Department said on Tuesday.
Jefferson County’s unemployment rate increased from 5.5 percent in September to 5.9 percent last month.
A similar increase in unemployment rates was seen statewide, with the rate at 6.3 percent in October, up from 5.8 percent in September.
Linda Rotmark, Clallam County Economic Development Council executive director, said the jobless rate is increasing across the Peninsula in response to the national economy.
Cutting payroll
Rotmark said companies are attempting to respond to economic decline by reducing payroll expenses.
This can be done through layoffs or by not replacing staff.
Either way, it’s harder to find work.
“Locally, they are responding in an effort to mitigate what they think is coming down the pike,” she said.
“They are cutting back as far as they can. Payroll is a major expense.”
Rotmark predicts a tough business climate to last for between a year and 18 months.
The 7.2 percent unemployment rate in Clallam County isn’t the highest it has been, even in recent memory.
The average unemployment rate in Clallam County in 2003 was 7.5 percent, according to the Economic Development Council’s Web site.
Rotmark said unemployment hasn’t been in double digits since the 1980s.
Nervous at 8 percent
“I’ll get a little nervous when it gets to 8 percent,” she said.
Rotmark said layoffs are particular tough on Peninsula residents, since they can’t easily commute to other communities to find other jobs, as in the Seattle metropolitan area.
Statewide, about 23,000 nonagricultural jobs were lost last month.
In October 2007, the unemployment rate was 4.4 percent in Jefferson County and 5.4 percent in Clallam County.
Rotmark said owners of troubled businesses can contact the Economic Development Council, located at 102 E. Front St., Port Angeles, for assistance by phoning 360-457-7793.
She also encourages people to shop locally, and for business owners to help each other out whenever possible.
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Reporter Tom Callis can be reached at 360-417-3532 or tom.callis@ peninsuladailynews.com.
