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Jobless rate steady despite sagging factory sector
Tuesday, October 28, 2003

Local manufacturing jobs continued their steady downward slide in September as the unemployment rate for the six-county region stayed at 5 percent, unchanged from August.

The factory sector shed 600 jobs last month in Allegheny, Beaver, Butler, Fayette, Washington and Westmoreland counties, dropping to 108,900, the year's lowest total and 4,200 below September a year ago, the state Department of Labor & Industry said.

The figures, based on a state survey of business payrolls, showed that gains in machinery and nondurable goods production during September were more than offset by losses in primary metals and fabricated metal products manufacturing. September manufacturing employment has fallen by 17,900 the past three years, the state said.

Despite manufacturing's drag, the overall unemployment rate for the region held steady in September as the labor force -- those working or actively seeking work -- declined in line with employment and unemployment, according to the state's separate survey of households that's used to determine local jobless rates. The continued decline in the region's labor force suggests that many people have become so discouraged about job prospects in the poor economy that they are not looking for work, said Michele Hiester, a labor market analyst with the state. "We're still looking for employers to start hiring," she said.

Hiester said the only job increases were seasonal in nature. Transportation employment, for example, rose in September as school bus drivers returned to work following the summer break.

Construction job levels started their seasonal downward swing in September as summer contracts neared completion. The construction industry employed 59,800 in September, off 1,100 from August.

Retailers trimmed their work forces by 1,100 jobs, but Hiester said those cutbacks were in line with past year's August-to-September reductions when many employers lose temporary summer workers.

Above-normal reductions were seen in local government jobs, partly as a result of the city of Pittsburgh's decision to lay off approximately 700 workers because of budget woes. Overall, local governments dropped 2,200 jobs during September, many of them temporary summer youth workers.

First published on October 28, 2003 at 12:00 am
Jim McKay can be reached at jmckay@post-gazette.com or at 412-263-1322.