Scotland County's unemployment rate increased for a second month, hitting 16.3 percent in June, according to employment data released Friday. The adjusted rate was 16.2 in May.

The county maintained the dubious distinction of having the highest unemployment rate in the state, according to the state Employment Security Commission, followed by Edgecombe County with 15.0 percent, Rutherford with 14.7, Caldwell and Anson with 13.4 and Cherokee with 13.2. Currituck County had the lowest rate at 4.8 percent.

The county workforce dropped by 16 to 13,523, with those seeking work increasing 40 people to 2,203 and those currently employed dropping by 56 to 11,320.

Greg Icard, county economic developer, says the job situation is looking up despite the negative numbers.

"There are reasons for optimism," he said.

A number of employers will be hiring at area businesses as some facilities have expanded and others are planning to open.

Scotland Correctional Institute will have 138 vacancies to fill as the prison's expansion is completed in the coming months. The 1,000-bed, high security prison will grow to 1,756 inmates and a staff of 577 when current construction is finished.

Several smaller companies that are starting operations in Scotland, like Woodlawn Swing Sets that is expected to employ 25 and Viridian Biomass that will employ another dozen, will add to incremental job growth in coming months.

The addition of smaller companies is slowly growing the number of jobs, Icard said. The employment rate is nearly a full point lower than it was in June 2009, when Scotland's rate was 17.2 and 300 more people were seeking work.

Umicore is also trying to buy an additional 20 acres near their current facility at the Laurinburg-Maxton Airport Industrial Park for an apparent expansion project. Icard declined to release any details on the land buy.

Attracting small businesses is the new model for job growth, Icard said, as attracting a large manufacturing plant is nearly impossible anywhere in the country.

"It's just not the way it works anymore," he said.

The state unemployment rate dropped from 10.4, with 45 of 100 counties having an increase in joblessness and 35 seeing a decline.

All surrounding counties also saw a rise in unemployment, with Hoke's rate jumping 0.7 points to 8.7 percent. Robeson County had a 0.3 point increase to 11.7 percent and both Moore and Richmond saw a 0.1 percent increase to 9.1 and 12.8 percent respectively.

ESC Chairman Lynn R. Holmes says the employment situation is improving across the state.

"There are still many counties where the rate of unemployment remains high," she said.