Jobless rate tops 10 percent
For the first time since 1992, Fayette County’s unemployment rate has moved into the double-digit range. According to the state Department of Labor and Industry, Fayette County’s jobless rate in September reached 10.3 percent. The rate in December 1992 was 10.5 percent, according to Lauren Nimal, industry and business analyst with the Department of Labor Center for Workforce Information and Analysis.
Unemployment in Fayette County rose from 9.8 percent in August. By comparison, Fayette’s jobless rate was 6.9 percent in September 2008.
Nimal said Fayette County’s unemployment picture is similar to that in the Pittsburgh Metropolitan Statistical Area (PMSA), where job cuts in manufacturing and professional and business services pushed the jobless rate to 8.1 percent in September. Nimal added it was the first time since September 1986 that the PMSA rate went above 8 percent.
“And it was more than double the most recent trough of 4 percent experienced in March 2007,” she said.
Fayette County is one of seven counties in the PMSA. The others are Washington, Westmoreland, Allegheny, Armstrong, Butler and Beaver.
Nimal blamed layoffs and job cuts in Fayette County for the increase in unemployment, rather than people bloating the labor force searching for jobs. Fayette County’s labor force in September totaled 66,400 people. In August, the total was 66,300. However, the number of unemployed residents rose from 6,500 in August to 6,800 in September, according to state figures.
“Fayette County is following a pattern similar in other metropolitan statistical areas where they have had manufacturing job losses. The unemployment count in Fayette is also at its highest level since February 1992,” Nimal said.
“This high unemployment rate certainly is a result of the global economic downturn but also the failure of our educational institutions to provide the workforce we need today,” said Mike Krajovic, president of Fay-Pen Economic Development Council.
“It’s not surprising to me to hear that the figures are going up. What is disappointing is there are still job opportunities here that are not being filled due to a lack of education or skill levels required for those positions.
“Just as a current example, we see a significant increase in inquiries from different companies that service the natural gas industry about our job market. There are many job opportunities that are being created now and will grow in the future. We don’t have the right skill sets in some of these areas and the companies have to go outside to find workers,” he said.
“We still need to focus on our educational system. While some improvement has been made, it’s not enough. We need a new technical school so students can get the proper education to meet the employment requirements of today.”
Krajovic continued, “From our perspective, we have the challenge to address this unemployment rate. Crossing the double-digit threshold shows there are challenges that we need to be doing everything possible to meet at the local level.
Meanwhile, neighboring county unemployment rates also rose in September. Greene County’s rates were 8.4 percent in September and 8.2 percent in August. Washington County’s unemployment rates also were 8.4 percent in September and 8.2 percent in August. By comparison, Greene County’s September 2008 rate was 6.1 percent and Washington County’s rate was 5.4 percent.
In terms of ranking among Pennsylvania’s 67 counties, Fayette County had the 50th highest rate, while Greene and Washington counties both placed 17th. The highest jobless rate in the state in September was 17 percent in Cameron County and the lowest was 6.1 percent in Centre County.
Nimal reported the PMSA rate also has risen in each of the past 12 months.
However, the PMSA held the sixth lowest unemployment rate among Pennsylvania’s 14 metropolitan statistical areas in September. And, individual county rates in the PMSA ranged from 7.5 percent in Allegheny County to 10.3 percent in Fayette County.
Overall, Nimal said the PMSA lost 2,800 jobs in September.
“The seasonally adjusted job count has declined in 11 of the last 12 months,” she said.
Since September 2008, the area has lost 36,000 jobs or about 3.1 percent of its total, Nimal reported.