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Region's jobless rate ticks upward
Tuesday, September 27, 2011

Unemployment in the Pittsburgh region rose by four-tenths of a percentage point to 7.8 percent in August, up from 7.4 percent in July, the Pennsylvania Department of Labor and Industry announced this morning.

The rise in unemployment in the seven-county metropolitan statistical area mirrored the percentage increase that the state experienced for the month, when Pennsylvania's rate rose from 7.8 percent in July to 8.2 percent in August.

Locally, unemployment is at its highest point so far this year, erasing all of the gains made when it dipped to 6.8 percent in March and April. August was also the fourth straight month of unemployment increases for the seven-county region.

Some of the increase in the unemployment rate is accounted for by more people entering the workforce. Using seasonally adjusted figures that account for the normal ebbs and flows, the Department of Labor and Industry figures show the labor force increased by 13,900 people, but only 8,200 of them found jobs.

That means when people either came out of school or off a summer break from job hunting and started to look, there weren't enough new jobs available to absorb them. The unemployment rate is derived from a telephone survey of households.

A separate survey of employers showed the region lost 800 jobs during the month as federal, state and local governments all cut jobs in August. Local governments cut the most, shedding 1,200 jobs with 700 of those outside of educational services. Government employment was down 2,300 jobs in August when compared to August 2010.

The other supersector to lose a lot of jobs was leisure and hospitality, which cut 2,600 jobs from July to August under the category of food services and drinking places.

August did provide a little bump in the information business. Despite the Verizon strike, which sent workers off the job, the filming of the new Batman movie, "The Dark Knight Rises," covered that loss and even accounted for an additional 800 jobs added in the information supersector, which was up 4.4 percent from July.

Educational and health services, which is made up of private educational institutions and the entire health field, lost 900 jobs as colleges and universities cut 1,500 jobs in August and there weren't enough new jobs in health care to make up the difference.

Manufacturing experienced a net loss of 500 jobs, while mining and logging added 200 jobs for the month. Construction was a bright note in the jobs report, adding 1,400 jobs.

First published on September 27, 2011 at 12:00 am