Fayette, area jobless rates rise
Fayette County’s unemployment rate moved into the double digits in December thanks to an expanding labor force. Fayette County had 10.7 percent unemployment in December, up from a revised figure of 10.1 percent in November, according to the monthly report released by Michele Hiester, industry and business analyst for the Pennsylvania Department of Labor. That report covers the Pittsburgh Metropolitan Statistical Area (PMSA), which includes Fayette, Washington, Westmoreland, Allegheny, Butler and Beaver counties and the City of Pittsburgh.
Neighboring Greene and Washington counties also showed increases in unemployment. Washington County’s rate went from 5.8 to 6.1 percent from November to December and Greene County’s rate went from 6.8 to 7.4 percent from November to December.
By comparison, Fayette, Washington and Greene counties jobless rates in December 2003 were 7.6 percent, 5.5 percent and 6.1 percent respectively.
Hiester said the region’s labor force and resident employment levels expanded “in excess of seasonal expectations,’ in December.
“Employment increased at a slower pace than the unemployment rolls causing the unemployment rate to rise,’ she added.
However, Hiester said the higher rates are not necessarily bad news.
“Fluctuations in the unemployment count, when the labor force is expanding, are not uncommon during times of economic recovery. Compared to last December, both resident employment and unemployment were up. The rise in unemployment pushed the rate up five-tenths of a percentage point over the year,’ in the PMSA.
“As the labor force continued to rise, pointing to more optimism among residents, employment reached the highest level since September 2002. PMSA has recovered 32,200, of the 42,200 resident employment decline, since the most recent high reached in May 2002,’ Hiester said.
Fayette County labor force in December totaled 62,300 with 6,600 of those people unemployed. In November, Fayette’s labor force totaled 61,900 with 6,200 unemployed.
Washington County’s labor force totaled 99,900 in December with 6,100 unemployed and 99,400 in November with 5,800 unemployed.
Greene County’s labor force hit 17,300 in December with 1,300 unemployed and 17,100 in November with 1,200 people unemployed.
The jobless rate in the PMSA was 5.7 percent in December, 5.5 percent in November, and 5.2 percent in December 2003.
Hiester said that PMSA payrolls were down.4 percent from November to December due to reductions in the construction, natural resources, and mining industries, which were responsible for 90 percent of the decline.
In key areas, Hiester reported:
– Typical winter related declines in construction were augmented by losses in mining. Maple Creek Mining had only half of their workforce back to work following the November 12 shutdown.
– Manufacturing continued it’s slow, yet steady decline. Employment increases in fabricated metal product manufacturing countered job losses due to the recent layoff at Glenshaw Glass Co. Inc., keeping the durable goods manufacturing level unchanged.
– Retailers continued to hire staff for the holidays tempering reductions seen in other service providing industries. The December rise in retail employment was in line with past year’s increases.
– Professional and business services employment was down from November with most losses concentrated in the administrative and support services industry. Half of the administrative and support services reductions occurred in the employment services industry.
– Colleges and universities reduced payrolls as student workers went on holiday break; leisure and hospitality employment continued to recede over the month; and government jobs were down in December with losses concentrated in local government education.
Hiester said that job levels were above the year-ago-level for the fourth consecutive month. Approximately 7 out of every 9 jobs added over the year were service-providing jobs.