JEFFERSON CITY– Missouri’s unemployment rate increased slightly in December, according to data released today by the Missouri Department of Economic Development (DED). Missouri’s unemployment rate rose to 9.6 percent, up two-tenths of a percentage point from the revised November figure (November’s rate was revised down from 9.5 to 9.4 percent) on a seasonally-adjusted basis. The state’s nonfarm payroll employment decreased by 2,600 jobs.

It was the tenth consecutive month that Missouri’s seasonally-adjusted unemployment rate was lower than the U.S. figure, which was 10 percent in December. On a not-seasonally adjusted basis, Missouri’s unemployment rate for December stood at 9.2 percent, compared to the U.S. rate of 9.7.

There was little change in the state’s nonfarm payroll employment in December, with employment edging down by 1,900 jobs on a seasonally adjusted basis. The main decreases occurred in construction (-1,200), retail trade (-3,100), and leisure & hospitality (-1,000.) Construction employment has decreased fairly continuously since before the recession began, as housing construction, in particular, has been hard hit by the problems in the broader housing and financial sectors. Leisure & hospitality employment has trended down, although irregularly so, as business and leisure travel has decreased and consumers are spending less on entertainment and dining out. There was little seasonal hiring (+300) in retail trade in December, partly due to weak sales and partly to changing patterns of gift purchasing, including more gift cards and increased on-line shopping.

These decreases were partly offset by gains in various industries including durable goods manufacturing (+1,200 seasonally adjusted), and temporary help and other administrative and support services (+1,500). Most other industry groups were relatively unchanged in December.

Payroll employment decreased in the Kansas City and St. Louis metropolitan areas, by 4,900 and 4,700 respectively, with the factors that affected the state also at work in Kansas City and St. Louis. In addition, those two areas had not-seasonally adjusted employment decreases in administrative and support services and local government. Manufacturing employment was also down in Kansas City, by 500. Other metropolitan areas of the state were unchanged for December.