Two -thirds of U.S. states see drop in unemployment rates

By Alexandra Carrera | May 18, 2012 11:49 AM EDT

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The unemployment rate decreased in almost two-thirds of U.S. states last month, reports the Associated Press. The drop in claims for jobless benefits may be a sign that there is some improvement as far as available positions and hiring throughout most of the nation.

According to the Labor Department, unemployment rates fell in 37 states in April, the most that it has gone down in three months. However, unemployment went up in 5 states, while in 8 it remained the same.

Over the past five months, employers have added about 1 million jobs, but the rate of hiring had been sluggish in March and April.

Nevada currently has the highest unemployment rate, reportedly at 11.7 percent. However, according to the Las Vegas Review Journal, the current jobless rate has reached the level it was at in 2009.

Bill Anderson, an economist for the state, believes that the drop in unemployment may be due to "both job growth and a shrinking labor force." He added that "Much has been made of late about the underlying reasons behind the downtrend in the unemployment rate. While job growth has been positive of late, contributing to the drop in the jobless rate, there are some structural forces at play, as well. Specifically, the labor force participation rate has been trending down both at the state and national level for many years."

However, the state saw a decline in its participation rate from 67.8 percent at the start of the recession to 64.9 percent.  Throughout the country, the participation rate also went down to 63.6 percent from where it was in 2008 at 66 percent. 

The private sector in Nevada has added almost 14,000 additional jobs than it did in 2011. However, the public sector has lost around 6,400 jobs since January 2011.

Unfortunately, California saw employers cut around 4,200 jobs in April, which undercut its eight month hiring spree.

The unemployment rate did go down in April from 11 percent to 10.9 percent. However, this was due to "discouraged workers" leaving the workforce, based on data from the Bureau of Labor Statistics.

The industries that experienced job cuts included the construction, education, government as well as the leisure and hospitality. On the other hand, the professional and business services segments increased their payrolls. 

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