Students entering labor market drive up jobless rates
Getting an early start on summer job hunting, thousands of students helped drive the area unemployment rate higher in May. County labor force numbers climbed as did those for the six-county Pittsburgh Metropolitan Statistical Area (PMSA).
For example, Fayette County’s jobless rate rose from 7.2 percent in April to 7.5 percent in May due to an increase of 300 in the number of unemployed residents. Its labor force total went from 57,700 in April to 58,200 in May.
Greene County’s jobless rates were 5.4 percent in April and 5.8 percent in May. Its labor force total remained at 16,500 for both months. However, it had 100 more unemployed residents in May, which caused the unemployment gain.
Washington County’s unemployment rose from 5.3 percent to 6 percent from April to May and its labor force total rose from 97,300 in April to 98,600 in May.
In the PMSA, which includes Fayette, Washington Westmoreland, Beaver, Butler and Allegheny counties, the unemployment rates were 4.9 percent in April and 5.4 percent in May. Labor force totals were 1,169,500 in April and 1,181,800 in May.
“The May unemployment rate was the highest it has been since December 1995 when the rate was 5.7 percent,’ Michele Hiester, Pennsylvania Department of Labor industry and business analyst, said.
“The Pittsburgh area’s labor force expanded by 6,000 with many resident job seekers entering the employment ranks in May. Recent college graduates and students looking for summer work are having a more difficult time finding jobs due to the tight job market,’ she said. Over the year, Hiester added, the number of employed residents in the PMSA fell by 5,400 while the number of unemployed increased by 12,100 “contributing directly to this year’s higher unemployment rate.’ By comparison, unemployment rates for May 2001 were lower. Fayette’s rate was 7.1 percent; Greene County’s rate was 5.3 percent, and Washington County’s rate was 5.2 percent.
Meanwhile, the PMSA experienced a .7 percent rise in jobs from April to May while the state was up .5 percent. Goods and service producers both added area jobs over the month with many gains of a seasonal nature, Hiester said.
“Construction contractors expanded payrolls by 3,300 in May. Approaching summer season typically spurs increases in construction jobs,’ she added.
In other areas, Hiester reported manufacturers realized a loss of 300 jobs over the month. The losses were confined to durable goods factories with the top losses in stone, clay and glass production and steel manufacturing.
Transportation and utilities added 600 jobs from April to May. There were slight gains in all transportation and utilities industries in May. Trucking and warehousing continued to add jobs with 300 more in May pushing employment up 200 above last year’s level, she said. “Retail trade increased job counts by 3,500 in May. Restaurants added a significant number of jobs to their payrolls in preparation for the typical increase in business during spring and summer months due to vacationers and more people opting to eat out. Retailers of building materials and garden supplies also added jobs as expected at this time of year,’ she said.
Finance, insurance and real estate added 300 jobs over the month. “Real estate, an industry that has maintained strength during the recent economic slowdown, increased jobs by 200 in May.’
The services industries were up 700 jobs in May in the PMSA, she said. “The top job gain was in the amusements industry as expected in May. The 3,700 jobs in amusements in addition to gains in many other services industries countered declines seen in educational services and personal services.
“Educational services, which includes private universities, experienced declines in May as many students leave on-campus jobs to prepare for finals and the end of the school year.’
Losses in personal services may be attributed to the end of the tax season in April,’ she said.
The average weekly paycheck for area factory workers was down slightly in May due to a shorter workweek in addition to a 5-cent drop in average hourly earnings. That brought the weekly paycheck down $3.66 from April to May.