Delaware's unemployment rate dropped in December

Delaware's unemployment rate decreased to 5.4 percent in December, a 0.6 percent drop from 6 percent in November and a full point from October's 6.4 percent rate, the state reported.

Despite the good news, a state official said a decline this rapid is unprecedented and likely the result of seasonal variations such as an increase in holiday hiring.

"The months of December and January are where you get the most seasonal variations," said George Sharpley, an economist with the Delaware Department of Labor. "You see a lot of seasonal hiring and seasonal layoffs at this time of year. The adjustment process corrects for that, but it's not a perfect process."

Although the results will be smoothed out when the state releases year-to-year data in March, Sharpley said the numbers indicate positive long-term trends for Delaware. The state's employment is up, unemployment has decreased and job growth is the strongest it has been in Delaware since the 1990s, even after December's declines.

Delaware lost 1,000 nonfarm jobs in December, dropping to 444,400 from 445,400 in November. However, the state's total nonfarm jobs have increased by a net gain of 11,700 since December 2013, a gain of 2.7 percent. Nationally, jobs increased 2.1 percent during that period.

"You have to assume there is a fair amount of statistical variation, but it's clear everything is moving in the same direction," Sharpley said. "Employment is up and unemployment is down."

There was 2,500 fewer unemployed residents than in November and the number of employed Delawareans increased by 1,100 according to the Monthly Labor Review, a state Department of Labor publication.

Across the country, the unemployment rate dropped, but not as swiftly as it did locally. The national unemployment rate dropped to 5.6 percent in December, just below the November rate of 5.8 percent. In December 2013, the United States' unemployment rate was 6.7 percent, while Delaware's rate was 6.2 percent.

In New Castle County, the unemployment rate was 4.4 percent, down from 4.9 percent in November. In Kent County, the rate was 4.6 percent, down from 4.9 percent in August. Sussex County recorded a 5.1 percent unemployment rate, down from 5.2 percent in November.

Metropolitan areas also saw drops in unemployment. Wilmington's unemployment rate was 6.4 percent in December, a drop from 7.5 percent in November. Dover recorded a 5.4 percent unemployment rate in December, down from 5.8 percent in November.

Contact Jeff Mordock at (302) 324-2786 or jmordock@delawareonline.com.