Over 12,000 jobs vanished from Idaho's economy in December, driving the state's seasonally adjusted unemployment rate up nine-tenths of a point from November to 6.6 percent.

More than 50,000 workers were without jobs, more than double a year earlier, as the unemployment rate hit its highest level in over 20 years and Idaho's economic turmoil approached the severity of the early 1980s. The rate was only 2.7 percent in December 2007.

The deepening recession was felt throughout the state, hitting every sector of Idaho's economy including government. The state paid out a record $33 million in regular and extended jobless benefits during December and an unprecedented $22 million during the first two weeks of January.

Total employment fell another 7,200 to just over 710,000, down almost 27,000 from December 2007 and the fewest people at work in Idaho since January 2006. At 3.6 percent, it was the largest year-over-year employment decline on record.

December's huge job loss - the deepest December job loss since 1979 - capped a year where Idaho's economy dropped over 27,000 nonfarm jobs, the first year the state has lost jobs since 1986. Idaho employers reported hiring fewer people in December than in any other month since mid-1999. Single job openings were attracting hundreds of applicants.

December's 4.1 percent job decline from December 2007 marked the largest year-over-year job loss since October 1982 during the heart of the state's worst economic crisis since the Great Depression.

The dramatic spike in the jobless rate further narrowed Idaho's gap with the national rate, which rose four-tenths of a point to 7.2 percent. Idaho has been below the national rate for over seven years.

While Idaho's 6.6 percent December forecast could be revised, any revision would be minor. Rates for both October and November were revised downward by a tenth of a point from the preliminary rates. The last time Idaho experienced a month-to-month increase of more than nine-tenths of a point was in 1972.

Sectors with typically higher paying jobs continued to be hit hard. Over 3,800 more construction jobs were lost in December, bringing the total decline in 2008 to 7,600 and dropping the number of construction jobs to its lowest level since April 2005.

Another 1,300 manufacturing jobs disappeared - primarily in high technology and wood products - pushing the overall loss in 2008 to 7,700, one of the worst annual manufacturing job losses on record. This continued erosion left Idaho with less than 58,000 manufacturing jobs, the smallest number since May 1992.

Wholesale and retail trade both shed jobs in December - a month that typically sees increased employment. Financial services, business services and restaurants all posted job losses.

Forty of Idaho's 44 counties saw jobless rates rise and nine posted double-digit rates. Adams at 17.5 percent was the highest. A year ago, the highest rate was 9 percent in Clearwater County. Clearwater was also the last county reporting an unemployment rate at 17.5 percent - in February 1988.

Unemployment in the Boise-Nampa metropolitan area hit 6.8 percent, up from 2.5 percent one year earlier. In the past year, 15,800 fewer people were working, nearly 60 percent of the state's employment loss, while the ranks of the unemployed swelled by 12,700, just over 40 percent of the increase statewide.

The lowest county unemployment rate in December was 2.7 percent in Owyhee County. No other counties reported unemployment rates below 3.5 percent. A year ago, 22 were at or below 3 percent with the lowest rate in Owyhee County at 1.2 percent.

In 2008, unemployment averaged 4.2 percent, up a percentage point and a half from 2007's record low average and the highest annual average rate since 2004. During 2008, 37 counties saw unemployment rates double.

Clearwater recorded the highest average rate at 9.2 percent, well above the 2007 average of 6.6 percent. The lowest annual average unemployment rate was reported in Teton County at 2.3 percent. Eight other counties reported average unemployment rates at or below 3 percent. In 2007 there were 27 counties with an average unemployment rate at or below 3 percent.

Seasonally Adjusted Forecast Data

12/08

11/08

12/07

Civilian Labor Force

760,300

760,700

757,100

Unemployment

50,100

43,300

20,200

% Labor Force Unemployed

6.6

5.7

2.7

Total Employment

710,200

717,400

736,900

Unadjusted Forecast Data

12/08

11/08

12/07

Civilian Labor Force

757,400

759,100

755,500

Unemployment

50,100

42,000

22,300

% Labor Force Unemployed

6.6

5.5

3.0

Total Employment

707,300

717,100

733,200

Area Unemployment Rates

12/08

11/08

12/07

Boise City-Nampa MSA

6.8

5.9

2.5

Burley MicSA

6.1

4.5

3.3

Coeur d'Alene MSA*

7.3

6.7

3.0

Grangeville SLMA

10.3

8.8

4.8

Hailey SLMA

5.5

4.9

2.1

Idaho Falls MSA

4.8

3.5

1.9

Lewiston MSA

6.4

6.0

3.3

Pocatello MSA

5.5

4.7

2.5

Rexburg MicSA.

4.8

3.6

2.0

Twin Falls MicSA

5.1

4.6

2.1

*Coeur d'Alene MSA includes all of Kootenai County