More people looking for work drive jobless rates higher
While the number of people entering the job market in August climbed in the tri-county area, not enough of them found employment to prevent the jobless rate from rising.
Fayette County saw an increase of more than 700 people enter the labor pool, but about 400 found employment, according to the Pennsylvania Department of Labor. Fayette County’s jobless rate went from 9.3 percent in July to 9.6 percent in August. The rate was 9.6 percent in August 2010.
Washington County had more than 1,200 more job seekers, with about 500 finding work. Washington County’s unemployment rates were 7.9 percent in August, 7.5 percent in July and 7.8 percent in August 2010.
Greene County’s labor force increased by 200, with 100 of those people finding employment. Greene County’s jobless rates were 7.7 percent in August, 7.3 percent in July and 7.5 percent in August 2010.
In terms of ranking, Fayette County’s jobless rate in August was the 53rd highest among Pennsylvania’s 67 counties. Washington County ranked 20th and Greene County ranked 14th. The highest unemployment rate in the state was 12 percent in Cameron County and the lowest was 6.5 percent in Centre County.
Meanwhile, the seasonally adjusted unemployment rate in the seven-county Pittsburgh Metropolitan Statistical Area (PMSA) rose from 7.4 percent in July to 7.8 percent in August, according to Christopher Magaro, industry and business analyst for the Pennsylvania Department of Labor.
The rate in the PMSA has increased in each of the past four months, he said. The local rate, however, remained below Pennsylvania’s rate (8.2 percent) and the United States’ rate (9.1 percent). Over the year, the PMSA’s unemployment rate was down .1 percent while Pennsylvania’s rate was down .4 percent over the same period, Magaro said in his report.
Among the 14 MSAs in the state, the PMSA was tied for the fifth lowest unemployment rate in August. Within the PMSA, which includes Allegheny, Armstrong, Butler, Beaver, Fayette, Washington and Westmoreland counties, Butler County had the lowest rate at 7.2 percent while Fayette County had the highest rate.
Magaro said that seasonally adjusted total nonfarm jobs in the PMSA rose 2,400 in August to 1,145,000. Statewide jobs also grew in August, up 1,500 to 5,683,600. He added that there were 16,400 more jobs int eh PMSA from August 2010 and 56,600 more jobs in the state from the same period.
In employment sectors, Magaro said goods producers in the PMSA added 1,100 jobs in August, marking the sixth consecutive month of job growth.
In specific areas, construction and mining and logging accounted for 1,600 more jobs over the month; factory jobs fell for the second straight month, down 500. Over the year, goods producers have added 5,400 jobs, with construction up 3,000, mining and logging up 1,300, and manufacturing up 1,100 from August 2010 levels.
However, the number of service-providing jobs in the PMSA fell 1,900 in August. Leisure and hospitality provided the largest movement of the month, down 2,300, ending six consecutive months of increases, Magaro reported.
The government supersector also continued to show declines, shedding 1,900 jobs in August.
Magaro noted that information jobs posted a gain of 800 thanks to movie extras used in the filming of The Dark Knight Rises. These, however, were offset by the Verizon Communications strike. He said information jobs will likely see a corresponding decrease in September.
“Over the year, six out of the eight service providing supersectors grew,” he said. . Education and health services gained 4,900 jobs; trade, transportation and utilities grew by 3,600 jobs; and professional and business services gained 3,500 jobs.
On the loss side, government was down over the year by 2,300 jobs; and leisure and hospitality was down by 1,700 jobs.
In terms of job growth, Magaro reported the education and health services supersector had the greatest over-the-year gains. In Pennsylvania, jobs in this sector grew by 15,900 and in the PMSA by 4,900.
Magaro explained the supersector is comprised of two sectors, educational services and health care and social assistance. Some examples of businesses included in the educational services sector are private K-12 education, private colleges and universities and education-related service, like tutoring. Importantly, educational institutions such as the University of Pittsburgh and Carnegie Mellon University are included in this sector, but public universities like California University of Pennsylvania are not.
Health care and social assistance includes businesses, such as hospitals, doctors offices, nursing homes and social assistance agencies.
In the PMSA, the education and health services supersector accounted for 236,300 jobs or 20.7 percent of total nonfarm jobs in August, with79.8 percent of the employment occurring in health care and social assistance.
The education and health services supersector has proved to be highly resistant to downturns in the economy. “Education and health services continued to show growth despite steep declines in the not seasonally adjusted total nonfarm jobs during the most recent recession,” Magaro said.
From August 2001 to August 2011, total nonfarm jobs in the PMSA fell by 7,800 or 0.7 percent but education and health services added 38,600 jobs or grew by 19.5 percent.
The majority of this growth was in health care and social assistance, up 31,400.