Jobless rate hits 15-year high
Area unemployment rate jumped from 4.3 percent
Buffalo Niagara’s unemployment rate last month jumped to 5.7 percent, its highest rate for October since 1993, as the nation’s economic woes began catching up locally.
The region’s unemployment rate rose significantly from 4.3 percent a year ago, according to figures from the state Department of Labor. In October 1993, the rate was 6.1 percent.
“The last time we saw it that high we were still coming out of the recession of the early 1990s,” said John Slenker, the Labor Department’s regional economist in Buffalo.
Unemployment in Niagara County rose to 6.2 percent last month from 4.6 percent a year ago. Erie County’s rate was 5.5 percent versus 4.2 percent in October 2007.
The region’s job market stayed relatively flat compared to last year. The total count of 554,900 jobs for October was up 200 over the same month last year. Private sector jobs declined by 0.4 percent from October 2007.
Manufacturing and construction, two areas most susceptible to trouble when the financial sector swoons, continued to slip last month.
Construction jobs took the biggest hit, dropping 8.3 percent from last year. That translated into 1,800 job losses as businesses thought twice about taking on more debt in the face of an uncertain economy.
“When people are concerned about the direction of the economy, they hold off on making larger new purchases,” said Slenker. “Businesses are the same way.”
Not surprisingly, manufacturing continued its decline, down 3.5 percent from last year with a loss of 2,100 jobs.
Squeezed consumers continued to take on part-time jobs, and the region’s leisure and hospitality numbers jumped up accordingly. That sector’s 5.9 percent overall gain was led by a whopping 9 percent increase in food services and drinking places.
Here are the unemployment rates for October, September and October 2007 for other Western New York counties:
• Allegany — 5.6 percent, 6 percent and 4.5 percent.
• Cattaraugus — 5.8, 6.1 and 4.5.
• Chautauqua — 5.3, 5.6 and 4.0.
• Genesee — 5.2, 5.3 and 4.1
• Orleans — 6.1, 6.3 and 4.6
• Wyoming — 5.1, 5.2 and 3.7
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