BY RACHEL CHEESEMAN

SALEM- While the Oregon unemployment rate has dropped since its peak of 11.6 percent May and June of 2009 to 10.6 percent this May, it still sits slightly above the national average of 9.7 percent.

Brooke Jackson-Winegardner, an economist for the Employment Division, said that there are several factors that contribute to the higher unemployment rate in Oregon. Seasonal industries like agriculture, construction and timber along with the state’s small labor force were two, but a third less-likely candidate was Oregon’s mild climate.

She said that states with milder climates typically have higher unemployment rates than those with more extreme climate variations. Workers in states with more volatile climates might choose to move to states with more mild climates if they lose their jobs, and workers in states with mild climates are more likely to stay in their home state, she said.

“It’s definitely a strange factor,” she said, “but it seems to contribute.”

Within Oregon, employment in the manufacturing sector increased from its low point in February, and the government added 6,800 jobs.

According to the Employment Department’s news release, some of these jobs are the result of an increased workload on agencies coping with the economic downturn and jobs funded by stimulus grants. Over two-thirds of the jobs, Jackson said, were federal employees hired temporarily for the census.

Retail added only 300 jobs during a season that typically shows rapid growth in this sector. Jackson said this is probably a lasting effect of the recession.

While educational and health service jobs decreased by 1,900, the report pointed to signs of long-term growth in the sector despite the one month decline, like the increased number of jobs in residential care facilities and social assistance.

Counties like Deschutes and Crook, whose economies are strongly related to the housing industry, are sitting above the state average with rates of 16.6 and 14.1 percent respectively.

Gilliam County boasts the lowest unemployment rate, only 7.1 percent, with more jobs expected to be created with the upcoming cherry harvest in June.