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Local jobless numbers higher in June
Tuesday, August 02, 2005

The unemployment rate for the seven-county Pittsburgh region rose slightly in June to a seasonally adjusted 5.2 percent as the number of jobs held by residents fell and some job seekers, apparently discouraged by lackluster prospects, left the labor force.



When statistically adjusted to reflect seasonal factors such as the end of the school year, the number of residents with jobs dropped by 13,600 over the month to 1,148,100 in the region encompassing Allegheny, Armstrong, Beaver, Butler, Fayette, Washington and Westmoreland counties.

At the same time, the number of people listed as unemployed rose by a seasonally adjusted 2,100 to 63,400, while the labor force, defined as those working or actively looking for work, fell by 11,500 to 1,211,500.

The June increase in the unemployment rate -- measured at 0.2 percentage point -- followed a 0.1 percent dip in May, when the labor force and residential employment both grew.

State analyst Michele Hiester said monthly fluctuations in the rate were not uncommon during an economic recovery.

Despite this month's slip in the labor force and employment, Hiester noted that June's unemployment rate was lower than the 5.9 percent reported in June 2004. The number of unemployed people also was down by 7,700 compared with a year ago -- which Hiester called "another sign the economy is improving."

The state's monthly unemployment figures are derived from a telephone sampling of households conducted by the U.S. Census Bureau for the U.S. Labor Department, which shares the data with the state.

A separate measure of payroll employment, based on surveys of employers and later matched against employers' tax records, showed a different picture, with the number of nonfarm jobs in the region jumping by 6,400 in June. Nonfarm payroll jobs totaled 1,151,300 in June. That is higher than May but a drop of 1,900 when compared with June 2004.

Total nonfarm payroll jobs averaged 1,131,416 during the first six months of this year, slightly higher than the running average of 1,129,150 for the same period in 2004.

At least two-thirds of the gain in nonfarm jobs in June came from seasonal additions to retail trade, administrative and support services, and the leisure and hospitality industry.

There also were gains during June in construction, natural resources and mining. The manufacturing segment added 500 jobs during the month despite layoffs at the Anchor Hocking plant in Monaca, the closing of International Paper Co. facilities in Eighty Four, and a strike at Airo Die Casting Inc. in Loyalhanna.

The transportation and warehousing sector lost 600 jobs, an above-average decline. The drop was blamed on continuing layoffs at US Airways and a decline in jobs in school transportation as schools let out for the summer recess.

There were below average job gains in local government, indicating a drop in the number of young workers hired this summer.

First published on August 2, 2005 at 12:00 am
Jim McKay can be reached at jmckay@post-gazette.com or 412-263-1322.