JOHN DAY – Grant County’s jobless rate rose into double-digits in October, with the seasonally adjusted rate reaching 12.9 percent – up from 9.4 percent in September.

The rise was reported as Oregon, the nation and the world continue to grapple with a steep economic downturn. In Oregon, the adjusted unemployment rate rose to 7.3 percent in October, up from 6.4 percent in September.

The percentages are adjusted to compensate for expected seasonal fluctuations in employment, as when construction work slows or timber crews lay off for the winter months. However, the adjusted October statistics do reflect the shutdown of the Prairie Wood Products sawmill and planer mill, a combined hit of about 45 jobs.

The state figures show 323 workers unemployed in the county in October, up from 220 the month before.

Counties across the state have seen job losses due to the housing slowdown and the national credit crisis, but there’s no question that the impact is harder on Grant County, officials said.

“Three percent is a large jump” in the rate, said Jason Yohannan, regional economist with the Oregon Employment Department’s WorkSource Oregon.

Even Grant County’s unadjusted rate showed a sharp rise – to 9.2 percent, up from 6.2 percent in September.

An adjusted rate topping 12 percent is unusual – at least for a larger region or the state, he said.

“Unfortunately Grant County has been through these kinds of experiences before,” he said.

The rise in Grant County was predictable in some respects, said Rick Minster, the John Day-based business development director with the Oregon Economic and Community Development Department.

“When you have two mills down, it’s not unexpected,” he said. In addition to the recent Prairie Wood Products shutdown, Grant Western stopped operating more than a year ago. Officials blame both closures on the lagging lumber market and an inadequate timber supply from federal lands.

“This is a little early for our traditionally high numbers,” he said.

The county’s rate put it at the top of the list of all Oregon counties, but it has plenty of company to share the pain, according to figures released last week by the Employment Department.

Other counties hitting double digits in October were Crook, 11.9 percent; Douglas, 10.4 percent; Jefferson, 11.7 percent; Josephine, 10.1 percent, Klamath, 10.9 percent, and Union, 10.7 percent.

Statewide, the Employment Department said three major sectors posted declines of more than 2,000 jobs: manufacturing dropped 4,500; professional and business services, 2,800, and leisure and hospitality, 2,100.

Wood products, hammered by the housing downturn, lost 1,000 jobs in October and is down 3,000 jobs since October 2007, according to the state.

As the economy slowed, local residents and officials have been working to revive the timber industry and also encourage tourism and other types of businesses.

Minster said he wished he had “the magic bullet” to provide a quick fix for Grant County’s economy. However, he said, with the county’s traditional wood products and natural resources emphasis, any growth is apt to be gradual – a few jobs at a time.

The state’s goal continues to be to retain existing businesses, expand them and recruit new ones, he said. The difficulty for counties like Grant and Harney is the remoteness from major interstate corridors.

“The challenge we have here, and the challenge in Burns, is logistics,” he said.

However, he said he sees potential in quality-of-life factors such as good schools, health care and public services. He said companies seek those assets over and above things like scenic beauty and recreation opportunities.

The local area has a good industrial park and a “world class rural airport” poised for growth, he said.

While the current economic challenges go well beyond the county’s borders, there also are opportunities to explore, he said.

He noted the growing interest in green technologies, such as wind and solar power, which will continue as the economy rebounds. A Dec. 3 regional meeting on wind power development will be an opportunity to look for niches that might even work in Grant County, he said.

“We’re not going to have big towers in Grant County,” he said. “We just don’t have the wind.”

Nor does it seem practical to manufacture huge industrial turbines and ship them up and down Highway 395, he said.

However, he said there may be opportunities for local businesses to get into the remanufacture, repair and maintenance aspects of that industry. Urban wind technology – back yard windmills – also could provide a U.S. market niche, one now dominated by Israeli manufacturers.

“The question is, how do we capture some of that manufacturing?” he said.