Unemployment rates rise during June
Normal seasonal layoffs and a drop in the overall labor force sent area unemployment rates up during June. According to Lauren Nimal, industry and business analyst for the Pennsylvania Department of Labor and Industry Center for Workforce and Information Analysis, jobless rates rose in part due to annual layoffs in education and education-related industries.
For Fayette County, that meant unemployment rose from 6.3 percent in May to 6.6 percent in June. Fayette’s jobless rate in June 2007 was 5.5 percent.
Greene County’s unemployment rate remained at 5.8 percent in May and June. It’s June 2007 rate was 5 percent.
Washington County’s unemployment rates were 5.2 percent in June, 5 percent in May and 4.5 percent in June 2007.
In terms of ranking, Fayette had the highest jobless rate in the Pittsburgh Metropolitan Statistical Area (PMSA), which includes Butler, Beaver, Armstrong, Allegheny, Washington and Westmoreland counties.
Statewide, Fayette County unemployment rate ranked 62nd highest out of all 67 counties.
Greene County’s rate ranked 41st and Washington County’s rate ranked 24 highest of 67 counties.
Nimal said the PMSA jobless rate rose about 5 percent for the first time since November 2005.
“The seasonally adjusted unemployment rate for the seven-county PMSA rose .2 percent in June to 5.1 percent. This was the first unemployment rate increase since February,’ she said.
“Despite the increase, the PMSAs unemployment rate continued to stay below those of the state (5.2 percent) and the nation (5.5 percent). The labor force dropped 3,900 to 1,212,300 in June,’ Nimal reported.
In her monthly report, Nimal said the drop in the labor force, due primarily to larger-than-expected spring gains, played a role in the June rate increase. “Unemployment was up 1,400 to 61,600, the highest level in 32 months. Over the year, the unemployment rate was up .8 percent,’ she said.
Within the PMSA, Butler was the only county to post an unemployment rate decrease and had the lowest rate at 4.6 percent. The PMSA rate tied with two other MSA rates for the sixth-lowest position out of the state’s 14 metropolitan statistical areas.
Nimal said PMSA employers expanded their payrolls for the fifth straight month, adding 5,600 jobs in June. This increase brought total nonfarm jobs to 1,165,100, the highest level since June 2001, she said. Over the year, total nonfarm jobs were up 700. The PMSA has been posting over-the-year gains since February 2006, but this was the smallest change during that period, according to Nimal.
“Goods producers reached their highest level since October 2007 with a gain of 1,600 jobs. Each goods-producing supersector added jobs, but the gains were primarily from a seasonal increase in construction,’ she said.
Meanwhile, manufacturers posted their fourth consecutive monthly increase with growth concentrated among durable goods establishments. “Goods producers were 2,000 below the June 2007 level. Most of the over-the-year decrease was in manufacturing, which has been showing increasingly larger over-the-year losses since October 2007,’ Nimal added.
She also reported that in June, PMSA service providers reached 1 million jobs for the first time ever due to a gain of 4,000 jobs.
Nimal said record highs were set in numerous industries, including wholesale trade, professional and business services, health care and social assistance, and leisure and hospitality.
“Although most service-providing industries experienced gains in June, education-related industries, such as transportation and warehousing (school buses) and public and private education, experienced typical seasonal declines. Service providers were up 2,700 jobs over the year, with the largest gains occurring in education and health services. Leisure and hospitality matched last June’s record high of 116,300 jobs.’