Jobless rate up in Idaho, nation

American jobs are vanishing at the fastest pace in more than five years with pink slips likely to keep stacking higher in the months ahead, an urgent signal the country may be careening toward a deep and painful recession just as we prepare to elect a new president.

In Idaho, the number of unemployed workers has nearly doubled since September 2007, according to the latest Idaho Department of Labor report.

Idaho's September unemployment rate jumped four-tenths of a point to 5 percent, up from 2.7 percent a year ago. That's the state's highest jobless rate since January 2004.

In Ada County, 4.9 percent of workers were unemployed, and in Canyon County 6.4 percent were jobless - higher than the national rate of 6.1 percent.

Increasingly skittish employers across the country chopped payrolls by 159,000 - more than double the cuts made just one month before. It was the ninth straight month of job losses. So far this year, 760,000 jobs have disappeared.

The Labor Department's report, released Friday, also showed that the nation's unemployment rate was up sharply from 4.7 percent a year ago. Over the last year, the number of unemployed people has risen by 2.2 million to 9.5 million.

"Washington, the labor market has a problem," said Joel Naroff, president of Naroff Economic Advisors. "Firms are hunkering down and running as lean as possible. We are likely to see more months of job losses before conditions turn around."

Even with Congress' unprecedented $700 billion financial rescue, the faltering economy and the jobs market probably will get worse. Many believe the economy will jolt into reverse later this year - if it hasn't already- and will stay sickly well into next year.

Local and national job loss could increase even more in October and November as fallout from the Wall Street crisis starts working its way across the nation, Boise State University economist Don Holley said.

Effects of the bailout won't arrive soon enough to stave off more job loss.

"It will take two or three months for this to kick in," Holley said.

Overall, Idaho has stayed below the national jobless rate for 84 months.

But the gap is narrowing. A year ago, the state's jobless rate was 2 percentage points below the national rate; now the difference is 1.1 percentage points.

The state Labor Department said Idaho employers reduced jobs from August to September for the first time in more than 30 years.

Unemployment in 11 of Idaho's 44 counties, including Canyon, is higher than the national rate. Clearwater County had the highest unemployment rate at 9.5 percent.

Three other counties reported rates higher than 8 percent - Benewah and Valley at 8.4 percent and Boundary at 8.3 percent.

Only three Idaho counties recorded unemployment rates at or below 3 percent. Owyhee County was at 3 percent, Madison at 2.7 percent and Franklin at 2.5 percent.

Statesman writer Cynthia Sewell contributed to this story.