The state’s worst unemployment situation since the days of the “Blizzard of ‘93” is showing few signs of improvement for Murray and Whitfield counties as the floorcovering industry continues to struggle.

Metro Dalton’s (Murray and Whitfield counties) preliminary unemployment rate was 7.1 percent in July, up from 6.5 percent in June, according to statistics released Thursday by the Georgia Department of Labor. In July 2007, metro Dalton’s unemployment rate was 4.5 percent. The U.S. seasonally adjusted unemployment rate is 5.7 percent.

The unemployment jump can be tied to the performance of major floorcovering companies that have suffered due to the slumping housing industry, a slowing economy and increases in raw material costs. Dalton-based Shaw Industries and Calhoun-based Mohawk Industries — both major area employers — reported decreases in revenue and pre-tax earnings for the second quarter this year (April-June).

Both companies are projecting the housing woes to continue throughout 2008. The hard times in the floorcovering industry have forced some companies to cut jobs, decrease production and scale back shifts

The high unemployment numbers locally are “maybe a little bit expected because of the economic situation,” said Marilyn Helms, a business professor at Dalton State College.

“Some of it may be the fact that locally our industry is tied to homebuilding, which is down, and the mortgage crisis, too,” Helms said. “And people aren’t building or necessarily remodeling right now. You have to look at what we do best in the area and when earnings are down, people don’t buy as much.”

The preliminary unemployment rate in the North Georgia area (Fannin, Gilmer, Murray, Pickens and Whitfield counties) was 6.8 percent in July, up from a revised 6.2 percent in June. In July 2004, the area’s unemployment rate was 3.3 percent.

The unemployment rate for Murray County in July was 6.7 percent, up from 6.5 percent in June and an increase from 4.4 percent in July 2007. The unemployment rate in Whitfield County was 7.3 percent, up from 6.5 percent in June and an increase from 4.6 percent in July 2007.

State labor commissioner Michael Thurmond said Georgia is “experiencing a rising tide of unemployment not seen” in more than 15 years.

“The surge of jobless workers into our career centers is challenging our ability to keep pace with the demand for assistance at a time when it is most needed,” Thurmond said. “We ask our customers for their patience and cooperation as we work together to meet and overcome these economic challenges.”

Georgia’s seasonally adjusted unemployment rate increased to 6.2 percent in July, up from 5.6 percent in June. The July rate was the highest recorded since March 1993. Ten counties in Georgia had unemployment rates above 10 percent, with the majority of those counties in the southern part of the state.

Currently, 304,536 unemployed Georgians are looking for work. Initial unemployment insurance claims, which Thurmond said are a leading economic indicator, rose by 30 percent in Georgia in July to 59,165. Georgia lost 46,600 payroll jobs from June to July, a decrease of 1.1 percent. The job losses came “across-the-board” in manufacturing, construction, trade and services, Thurmond said.