Despite discouraging national jobs data, unemployment continued to decline in the Hudson Valley, dropping to 6.8 percent in August from 7.1 percent in July and from 7.4 percent a year ago.
In New York state, the unemployment rate held steady at 8 percent from July to August and was down from 8.4 percent in August 2010.
The unemployment rates for Dutchess, Orange, Putnam and Rockland counties all posted monthly and yearly declines. In Dutchess, the unemployment rate dropped to 7.1 percent from 7.6 percent in Aug. 2010; in Orange unemployment dropped to 7.5 percent from 8.1 percent; in Putnam unemployment dropped to 6.4 percent from 6.7 percent; and in Rockland unemployment dropped to 6.4 percent from 7.1 percent.
In the Hudson Valley, the marked drop in the unemployment rate may have been affected by what was a significant decline in the civilian labor force, both for the state as a whole and for the region.
Over the past year, the state”™s labor force fell by 113,600 and the Hudson Valley”™s collective labor force fell by 18,600, declines that Department of Labor analyst John Nelson said could be attributed either to movement out of the area or to discouraged job-seekers who have given up on finding employment.
Nonetheless, Nelson remained upbeat about the private-sector growth.
“What I want to focus on more is that the private-sector job count is improving,” he said. “What”™s even more significant is the fact that it”™s not isolated growth. You”™re looking at several industries that are contributing to this nice turnaround.”
Leading the charge were the leisure and hospitality and the educational and health services sectors, which posted year-over-year growth of 3.2 percent and 2 percent, respectively, for the Hudson Valley.
Overall, private-sector jobs grew by 0.6 percent over the past year, adding a total of 4,100 jobs in the Hudson Valley, while total nonfarm jobs were unchanged from August 2010.
Holding back job growth were the construction and information-providing industries, in addition to government employers, which all posted year-to-year declines for the Hudson Valley region.
The loss of 2,600 jobs in the information sector is probably the result of the Verizon strike from earlier in August, Nelson said. “Most likely, we”™ll look at the data next month and see something a little softer, if any decline at all. Most of it was attributed to the Verizon workers that were on strike.”
In the past year, the construction industry lost 1,900 jobs in the Hudson Valley ”“ good for a 4.3 percent drop. Additionally, 4,100 government jobs were lost, a decline of 2.5 percent from Aug. 2010.
While Westchester County and the lower Hudson Valley as a whole showed impressive job gains in August, the uncertainty at the federal government level has continued to weigh heavily on business owners.
“To me, what”™s occurring is an incredible lack of clarity for most business owners,” said Anthony Domino, managing principal of Associated Benefit Consultants, an employee benefit firm in Rye Brook. He said that in a meeting with two U.S. senators last week, including Charles Schumer, he expressed his view that businesses are continuing to hold onto savings as a result of the uncertain economy and unstable political climate.
“I think the basic root cause behind all this is the uncertainty with where our government is headed with its tax policy,” Domino said, jokingly comparing the current stalemate between Democrats and Republicans with the duel between Alexander Hamilton and Aaron Burr.
“I really think that there is a huge philosophical battle going on in this country right now over the size and role of government. My hope is that there is far more going on behind the scenes than the public seems to be seeing.”
