Area economy still on upswing, state analyst says
Area jobless rates climbed slightly in June due to declines in the number of people in the labor force and residents who were working. In her monthly “Workforce Information News Release,’ Michele Hiester, an industry and business analyst for the Pennsylvania Department of Labor, said the seasonally adjusted unemployment rate in the seven-county Pittsburgh Metropolitan Statistical Area (PMSA) edged up .2 of a percent to 5.2 percent in June.
Fayette and Washington are two of the counties in the PMSA.
Greene County is tallied on its own.
All three counties showed improvement over the year.
Fayette County’s unemployment rate changed slightly, moving from 7 to 7.1 percent from May to June. However, Fayette had 7.7 percent unemployment in June 2004.
Washington County’s rates were 5.6 percent in June; 4.9 percent in May; and 6.1 percent in June 2004. Greene County had 5.7 percent unemployment in June and May and 6.5 percent in June 2004.
“Fluctuations in the seasonally adjusted unemployment rate from month to month, during times of economic recovery, are not uncommon,’ Hiester reported.
“The June unemployment rate (in the PMSA) was .7 of a percentage point below last year’s rate of 5.9 percent.
“Despite this month’s dip in the labor force and employment, the over-the-year rise points to more optimism among residents. Unemployment remained below the year-ago count as well, another sign the economy is improving,’ she said.
In specific areas, Hiester reported:
– The PMSA saw a .6 percent rise in jobs from May to June and statewide payrolls rose by .2 percent. Service providers contributed 67 percent of the added jobs over the month.
– Construction contractors added more jobs to their payrolls in June.
– Employment levels edged upwards in local manufacturing industries despite recent layoffs. Gains in durable goods manufacturing were tempered by the recent layoff at the Anchor Hocking plant in Monaca. Many of those jobs were transferred to Ohio. International Paper Co. closed one of its Eighty-Four plants putting over 100 employees out of work. Despite the closing, nondurable goods manufacturers still added 200 jobs to their payrolls.
– Seasonal additions in retail trade, administrative and support services, and leisure and hospitality continued as typically seen in June. Additions in these industries accounted for 70 percent of the total nonfarm increase over the month.
– Above average declines in transportation and warehousing pulled job levels down 600 from May to June. Typical declines in transportation, as schools let out for summer recess, were augmented by additional layoffs at US Airways Inc.
– School related declines occurred in education, both private and public, as many schools began summer recess (in June). Below average gains in other local government occurred at a time when more summer youth workers take on temporary jobs.
– Total nonfarm jobs in the PMSA were down over the year for the first time in the past 10 months. Layoffs and below average gains in June tempered increases typically seen at this time of year. The 12-month moving average of total jobs in the PMSA, which smoothes out the month-to-month fluctuations, dipped slightly in June. However, when compared to a year ago, the 12-month average is up almost 2,000 jobs indicating improvements, while small, have been seen.
Labor force figures for the three local counties in June were:
– Fayette: 65,600 people were in the labor force in June, of which 61,000 were working and 4,700 were not. In May, the total was 66,200, of which 61,500 were employed and 4,700 were not.
– Washington: 101,600 people were in the labor force in June, of which 95,900 were working and 5,700 were not. In May, the total was 101,900, with 97,000 working and 4,900 jobless.
– Greene: 17,600 people were in the labor force in June, of which 16,600 were working and 1,000 were not. In May, the total was also 17,600, with 16,600 working and 1,000 unemployed.
– PMSA: The total civilian labor force was 1,211,500 with 1,148,100 employed and 63,400 unemployed in June. In May, the total was 1,223,000 with 1,161,700 working and 61,300 jobless.
Average gross earnings and working time in June for manufacturing employees was $619.05 per week for 40.7 hours, up from May’s $616.10 for a 40.4-hour week.
For nondurable goods employees, the average was $585.06 in June for a 39.8-hour week and $581.54 for a 39.4 hour week in May.