Kings County's unemployment rate in October catapulted nearly 3 percent higher than a year ago, according to a state agency. The county's jobless rate skyrocketed to 10.9 percent, a sharp uptick from last year's 8 percent, the state's employment development department announced on Friday. That makes Kings County's with among the state's highest jobless rates, following the lead of many other rural counties, many of which are in the Central Valley.

Among the hardest-hit industries in Kings County this past year are retail and construction amid possibly the worst financial crises since the Great Depression.

More than most states, California has been battered by a particularly nasty real estate market, with home prices sliding by more than a third in much of the state. Lower home prices have forced many to walk away from their homes, increasing the foreclosure rate in the county. That in turn sends ripples to other homes by lowering prices.

"Most are selling homes because they have to," said Shane Davis, a real estate agent from Help-U-Sell Real Estate of Hanford. "Recreational selling is not existent."

As a result, customers are reluctant to buy homes they know might tumble further and purchase items in stores with lower equity, experts say.

"People are not buying homes," said Sheila Urdesich, a labor consultant for the state's employment development department. "So the slow construction market isn't a surprise."

Indeed, the county's construction and mining industry slashed 13.3 percent of its workforce compared with one year ago, according to the employment development department.

The county's retail industry cut 7.1 percent of its workforce during the same time period.

"We can't pick up the newspaper without seeing retail companies going under," Urdesich said. "So many companies are struggling to stay afloat."

Kings County's unemployment rate is much higher than the state's 8 percent. Experts say Valley counties have always had higher unemployment rates than major urban areas like Los Angeles County and the San Francisco Bay Area because of the reliance on fewer industries.

"We don't have the variety of industries in the Valley," Urdesich said. "When times are tough, we don't have the diversity of jobs to fall back on."

Still, Kings County has fared better than some of the surrounding Valley counties. For example, Fresno County has an unemployment rate of 11.4 percent, and Tulare County has an unemployment rate of 11.8 percent.

"We have a significant government employment with prisons, schools and the civilian portion at the Lemoore Naval Air Station," said John Lehn, president of Kings County Economic Development Corporation. "Such employment will typically help Kings County out more."

The reporter can be reached at 583-2423.

(Nov. 22, 2008)