Jobless pain continues in most states in May

by Lisa Lambert

WASHINGTON (Reuters) - Signs unemployment pains may be easing in individual U.S. states in April disappeared by May, when jobless rates jumped in 48 states and the District of Columbia, according to data released on Friday.

Michigan again reported the highest unemployment rate of 14.1 percent, followed by Oregon, which notched 12.4 percent, its greatest on record, the U.S. Labor Department said.

Not only did Michigan hold the highest spot in terms of unemployment, a position it has had for 25 of the last 26 months, but the state also experienced the largest monthly increase in its rate as two American auto behemoths -- General Motors and Chrysler -- struggled.

Michigan has had a jobless rate of 7.0 percent or more since April 2007, and broke above 9.0 percent in December.

Oregon, which has seen its rate spike over the last few months, had the largest increase from a year earlier, 6.7 percentage points, the Labor Department said.

"News on state unemployment rates is dismal," wrote Philippa Dunne, editor of the economic newsletter The Liscio Report.

The National Conference of State Legislatures called the data "disappointing".

The national unemployment rate last month was 9.4 percent, and 17 states and the District of Columbia recorded rates that were higher. In 15 states and the District of Columbia rates were greater than 10 percent, meaning that in those states at least one in 10 people does not have a job.