By Ahmad Safi

St. Joseph News-Press

The total number of people without a job in St. Joseph returned to the 8 percent mark in May after dipping the month prior for the first time in 2009, the government said Tuesday.

The Bureau of Labor Statistics said the area’s unemployment rate rose in May from 7.1 percent to 8 percent while payrolls in St. Joseph fell by 424. The jobless rate was 4.6 percent in May 2008.

In May, there were about 68,674 workers in the St. Joseph, of whom about 63,180 were on local payrolls.

With the exception of April, the unemployment rate in St. Joseph has hovered around 8 percent this year. It peaked in March at 8.5 percent and 5,762 people out of work — the worst jobless numbers since 1995.

The dip in April brought optimism as local officials sought signs of stability in job numbers. However, labor markets remain tough.

Nationally, jobless rates rose in all U.S. metro areas in May compared to the year prior. The U.S. unemployment rate climbed to a quarter-century high of 9.4 percent in May. Many economists predict it will rise to 9.6 percent in June.

The unemployment rate rose highest in the Indiana towns of Kokomo and Elkhart-Goshen, which have been slammed by layoffs in transportation equipment manufacturing, according to Labor Department data.

A common thread running through most of the regions that have been hard hit is the loss of manufacturing jobs.

The collapse of the housing market has especially hurt jobs at factories that produce building materials and household goods, such as carpets, flooring, appliances and furniture. In addition, the global recession has cut into demand from customers both at home and abroad for a wide range of goods.

The government releases the new national employment report on Thursday.

Ahmad Safi can be reached at ahmadsafi@npgco.com.

The Associated Press contributed to this story.