10 Maine communities now top double-digit unemployment

BANGOR – Ten communities statewide now have double-digit unemployment as more people enter the labor market and outpace the number of jobs being created.

The Millinocket-East Millinocket area’s not-seasonally adjusted rate for April was the highest at 32.7 percent, up from 30.3 percent in March. The effects of the closure and subsequent bankruptcy of Great Northern Paper Inc. in late December and early January continued to affect the area even though the sale of the company’s two mills was completed as planned by the end of the month.

Brascan Corp. of Toronto purchased the mills, and the East Millinocket site will reopen within the next couple of weeks.

But the anticipated sale did not stop job loss. In neighboring Patten and Island Falls, the not-seasonally adjusted unemployment rate grew to 13.4 percent from 9.9 percent the month before as 60 people lost their jobs, according to figures released this week from the Maine Department of Labor.

The Lincoln-Howland area also reached double-digit unemployment in April at 11.1 percent, up from 8.7 percent in March, as 140 people lost their jobs.

The other areas experiencing double-digit unemployment include Calais at 15.1 percent; Dexter-Pittsfield at 11.2 percent; Fort Kent at 10.3 percent; Greenville at 13.6 percent; Jonesport-Milbridge at 10.7 percent; Machias-Eastport at 10.4 percent; and Skowhegan at 10 percent.

Portland’s not-seasonally adjusted unemployment rate of 2.8 percent was the lowest in the state in April. Bangor’s was the second-lowest at 3.2 percent.

Statewide, the Labor Department tracks two unemployment rates. In April, the seasonally adjusted rate, which is altered to take into account normal fluctuations in employment such as tourism-related jobs or schools being in or out of session, was 4.8 percent, up from 4.5 percent. The seasonally adjusted rate is calculated only for the state and its counties, not its labor market areas. Nationally, the seasonally adjusted unemployment rate was 6 percent in April.

Maine’s not-seasonally adjusted rate was unchanged at 5.3 percent in April.

In a statement, Labor Commissioner Laura Fortman said the increase in the seasonally adjusted unemployment rate was attributable to an increase in the number of people looking for work. That includes people who may have been out of the labor market for years but in April decided to look for a job because their spouse may have been laid off.

“The total number of nonfarm wage and salary jobs increased slightly between March and April,” Fortman said. “However, unemployment also rose due to an increase in the number of people seeking work.”

In the past year, the number of seasonally adjusted nonfarm wage and salary jobs fell by 800. The not-seasonally adjusted number fell by 1,700. Most of the losses are in manufacturing sectors such as paper, wood products, computer and electronic products, and transportation equipment, as well as professional and business services. Job gains were in education and health services.