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Region's jobless rate hits 23-year high
Tuesday, October 27, 2009

Unemployment in the Pittsburgh region reached 8.1 percent for September, the highest in 23 years. The unemployment rate in August was 7.9 percent.

The local unemployment statistics, released this morning, showed that Fayette County has been disproportionately affected by the recession with the seasonally adjusted unemployment for September at 10.3 percent, a jump of 3.4 percentage points from September 2008.

It was a larger increase than the seven-county region that makes up the metropolitan statistical area, which experienced a rise in unemployment of 2.8 percentage points in the same period.

Allegheny County experienced the lowest level of unemployment in the region with 7.5 percent. Statewide the seasonally adjusted unemployment rate was 8.8 percent for September.

The difference between 1986 when the unemployment rate in the region was last more than 8 percent, and now, is that back then unemployment was on the decline from the recession nonadjusted high of 18.2 percent in January 1983. The current rate is continuing an upward trend.

While unemployment rates are seasonally adjusted, the survey of employers, in which jobs are counted, is not adjusted so that payrolls are best compared with the same month of the previous year to get an idea of how certain industries are fairing, particularly those that are seasonal.

In terms of goods-producing jobs, the Pittsburgh region lost 2,100 jobs in September, the largest loss in September since 2001.

Janet Lang, 43, of Millvale, was one of those people who lost her job last month.

For 13 years Ms. Lang made fine cabinets and architectural panels for Allegheny Millwork in Pittsburgh until Sept. 17, when she was laid off because production levels had fallen so dramatically.

"I think the recession finally caught up to the Pittsburgh area," she said, noting that when she takes her dog to the North Park off-leash area, the place is as crowded on weekdays as it is on weekends, and the people there are too young to be retirees.

"It's a free thing to do," she said.

Over the last year, the region has lost 16,700 goods-producing jobs, which broke down to 6,000 construction jobs and 10,700 manufacturing jobs.

While in September, the region gained 8,400 service sector jobs, it's normal for that sector, which includes school bus drivers and education and health services and academic jobs, to expand employment in September. However compared to September 2008, the service sector -- which also includes retail and government services -- lost 17,400 jobs.

Ann Belser can be contacted at abelser@post-gazette.com or 412-263-1699.
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First published on October 27, 2009 at 12:00 am