September jobless rate up to 14-year high, 9.5 percent unemployed in Shasta County

The unemployment rate in Shasta County in September hit a 14-year high, the state reported Friday.

Shasta's jobless rate last month was 9.5 percent, down slightly from 9.6 percent in August, but up from 6.8 percent in September 2007. The county's jobless rate was 5.5 percent in September 2006.

Last month was the highest unemployment rate for September since 1994, when it reached 10.4 percent.

California's jobless rate in September held steady at 7.7 percent - the highest level since March 1996.

The Associated Press reported that UCLA's Anderson Forecast last month predicted unemployment would continue to rise as consumers spend less.

"We're at the end of the housing-driven recession but at the beginning of the consumer-driven recession," Stephen Levy, director and senior economist at the Center for Community Study of the California Economy in Palo Alto, told the AP.

In Shasta County, there were 8,300 unemployed in September, unchanged from August, but up from 5,800 in September 2007. The county saw month-over-month job gains in state and local government (700 jobs), and education (800 jobs).

Among the sectors hit by job losses were leisure and hospitality (200 jobs), and real estate and leasing (100 jobs).

Looking ahead to the holidays, north state merchants are apprehensive as they prepare for the season, said Greater Redding Chamber of Commerce President Frank Strazzarino Jr.

The uneasiness is expected to impact hiring.

Managers at Kmart and JC Penney in Redding said they will hire holiday help but not the same number of people as last year.

"We are monitoring our sales and inventory, but it's probably going to be about 15 to 20 percent fewer people," said Rick Clemensen, who manages JC Penney in the Mt. Shasta Mall. "Like everyone else, our performance hasn't been what we would like, but we're still happy with our position and inventory."

That said, Clemensen acknowledged it's going to be a tough holiday season.

September jobless rate up to 14-year high, 9.5 percent unemployed in Shasta County