Unemployment rises in Pittsburgh region
A shrinking labor force and growing number of jobless pushed unemployment rates up in the Pittsburgh region during October. The seasonally adjusted unemployment rate in the six-county Pittsburgh Metropolitan Statistical Area (PMSA) increased by .3 of a percentage point from September to an October rate of 5.2 percent, Michele Hiester, industry and business analyst for the Pennsylvania Department of Labor, said in her monthly unemployment report.
“Despite this rise, the unemployment rate remained below the 2002 high of 5.4 percent in May,’ she added.
Locally, Fayette County’s jobless rate rose from 5.8 percent in September to 6.3 percent in October.
Greene County’s rates were 4.7 percent in September and 5.2 percent in October.
Washington County’s unemployment rates remained nearly unchanged, falling from 5.1 percent in September to 5 percent in October.
Hiester said in October, declines in the area labor force and resident employment in addition to a rise in the count of unemployed area residents pushed up the area’s unemployment rate.
The October unemployment rate remained higher than last year’s 4.6 percent, up .6 of a percent from October 2001.
In Fayette County, the October 2001 jobless rate was 5.3 percent; Greene County’s was 4.6 percent, and Washington County’s October 2001 rate was 4.5 percent, all lower than this October’s rate.
“Over the year, the labor force expanded by 4,600,’ in the PMSA, which includes Fayette, Washington, Westmoreland, Allegheny, Beaver and Butler counties, Hiester said.
“Here were 7,200 more unemployed area residents and 2,600 fewer employed,’ she added.
In specific areas in the PMSA, Hiester said seasonal reductions in construction occurred as winter weather approaches, resulting in 1,200 fewer jobs in October. However, construction jobs were 900 higher for the year.
“Durable goods producing industries experienced a 400 drop in jobs over the month. Reductions were concentrated in the steel industry. Over the year, manufacturers have lost 2,400 jobs with most of the losses occurring in the durable goods industries,’ she said.
Factory workers average workweek shrank by almost one hour. “Despite the one-cent increase in average hourly earnings, the average weekly paycheck was $13.80 less than September due to the retraction in the workweek,’ Hiester reported.
In other areas, she said, transportation and utilities employment remained fairly steady in October. There were continued school related gains in local and interurban transportation, which were countered by losses spread through other transportation and utilities industries.
Trade jobs edged upwards by adding 200 to payrolls over the month. Wholesalers added 500 jobs, she said, with most increases in durable goods wholesale.
“Retailers decreased job levels in October. Typical drops in restaurants at this time of year countered increases in general merchandise stores as retailers prepared for the holiday shopping season,’ Hiester said.
There were also declines in finance, insurance and real estate jobs in October. Reductions were mostly in finance with a slight loss in real estate.
But services and government added jobs from September to October. The largest over-the-month increases occurred in educational services and local education as private and public schools reached their full complement. Amusement services had seasonal reductions in October.
In Greene County, the civilian labor force barely budged from September to October. Over the year, the labor force has declined 400 people. The count of employed residents also declined in October with 100 fewer residents with jobs. Area employment dropped by 500 from October 2001. But for the year, unemployment is up 100.
“Jobs over the year were down 400 with this reduction occurring earlier in the year as Consolidation Coal Co. started cutting back their work force,’ Hiester said.
October unemployment rates in Pennsylvania’s major labor market areas ranged from 3.2 percent in the State College MSA to 6.9 percent in the Johnstown MSA. The PMSA’s October unemployment rate remained below both the state and the nation at 5.3 percent and 5.7 respectively.