Jobless rates rise in July
While area unemployment rates rose slightly in July, Fayette County continued to have one of the highest jobless rates among all of Pennsylvania’s 67 counties. Moving from 67th place in June to 65th place, Fayette’s unemployment rate was 6.8 percent in July, adjusted for normal seasonal variations. The highest rate in July, 7.3 percent, occurred in Forest County. The lowest, 3.2 percent, was in Franklin County.
Michele Hiester, an industry and business analyst for the Pennsylvania Department of Labor Center for Workforce Information and Analysis, said the regional jobless rate “fell noticeably’ in July, “as some residents became employed and others left the labor force.
In the broader view, Hiester said things improved over the year in the Pittsburgh Metropolitan Statistical Area (PMSA), of which Fayette is a part. “Compared to July 2005, total nonfarm jobs in the PMSA were up 8,000, keeping the job level above the year-ago count for the 13th consecutive month. The 12-month moving average of total jobs in the PMSA, which smoothes out the month-to-month fluctuations, was up almost 8,600 from July 2005, indicating mild improvement over the year,’ Hiester said.
But in Fayette County, the labor force and number of unemployed residents fell in July. Fayette’s unemployment rate was lower in June: 6.6 percent; and it reached 7.4 percent in July 2005. However, the number of people employed in Fayette County fell from 61,300 in June to 60,900 in July, not far off from the 60,800 resident workers listed in July 2005.
In neighboring Greene County, the jobless rates were 6 percent in July; 5.9 percent in June; and 6.2 percent in July 2005. The number of employed residents in Greene remained basically unchanged at about 15,900 in June and July.
In Washington County unemployment rates were 5.1 percent in July; 4.9 percent in June; and 5.4 percent in July 2005. The number of its employed residents also dropped from 97,600 in June to 97,100 in July.
Hiester reported the seasonally adjusted unemployment rate for the seven-county PMSA (Fayette, Washington, Westmoreland, Allegheny, Butler, Beaver and Armstrong) was 4.9 percent in July, up slightly from June’s 4.8 percent but remaining below 5 percent for the sixth time in the past eight months.
The seasonally adjusted resident employment estimate also was down over the month in the PMSA while unemployment edged up, she said, pushing the unemployment rate up .1 percent.
“Twelve out of the 14 MSAs in Pennsylvania experienced a rise in their unemployment rates from June to July. Pennsylvania’s seasonally adjusted rate was up .1 percent in July, matching the United States’ rate of 4.8 percent. Over the last 12 months, the PMSA unemployment rate dropped .3 percent.’
Hiester said employers in the PMSA also reduced payrolls by 1.3 percent from June, typical at this time of year. Education-related declines dominated area losses, she reported.
“Summer recess brought job levels down in educational services (private schools), transportation (school buses), and local government (public schools). These temporary furloughs accounted for the bulk of the reductions in the total nonfarm jobs count,’ Hiester reported.
Hiester said food services and drinking places reduced jobs by 1,000 over the month, a decline that is “typical for this time of year when school food service contractors reduce staff for summer break.’
However, construction contractors continued their summertime additions. Seasonal gains over the last five months, Hiester said, added 13,300 jobs, which is above last year’s March-to-July seasonal buildup of 11,300 jobs.
“Manufacturers experienced above average reductions in their payrolls in July. Typical reductions in durable goods manufacturing jobs were joined by a large decline in nondurable goods. Layoffs began at Nova Chemical helping to accentuate the over-the-month loss,’ she said.