Lackluster December employment numbers shed some doubt on what has otherwise been a strong year for the Westchester job market, serving as a stark reminder that there is still a long climb ahead.
In Westchester County, the unemployment rate jumped to 6.5 percent in December compared with 6.2 percent the previous month while private sector job growth stalled on cuts in the construction and manufacturing industries, according to data from the New York State Department of Labor. The county-specific data was not adjusted for seasonal fluctuations.
Across the state, the private sector shed 16,800 jobs in December, leaving the unemployment rate unchanged from November at a seasonally adjusted 8 percent.
There were positive signs as well. In December, Westchester was tied with Rockland and Saratoga counties for the third-lowest unemployment rate in the state, and the 6.5 percent unemployment rate for Westchester was still markedly better than the previous December, when unemployment was at 6.8 percent.
Seemingly in defiance of the numbers, however, there were fewer Westchester residents employed this past December than there were in December 2010 ”“ in a month that saw the national unemployment rate hit a 34-month low of 8.5 percent, no less.
Labor Department analyst John Nelson said that despite ending the year on a mixed note, businesses are exuding a more optimistic outlook.
“What we”™re seeing is there”™s reason to feel optimistic,” Nelson said. “Private sector employment grew by 0.8 percent (from December 2010 to December 2011). That job growth seems to be very much broad based. A lot of industries are joining this job recovery.”
In the region including Westchester, Putnam and Rockland counties, the private sector shed 1,200 jobs from November to December but added 3,500 net jobs over the past year.
Leading the annual growth was the private education and health services sector, which expanded at a rate of 4.5 percent, adding 5,300 jobs. The leisure and hospitality sector and financial services sector also posted strong annual performances, growing at rates of 3.2 percent and 3.4 percent, respectively.
As in past months, the construction and manufacturing industries continued to stifle any significant gains. Over the year, the natural resources, mining and construction sector shrank by 7.6 percent, cutting 2,200 jobs, and the manufacturing sector shrank by 2.3 percent, cutting 600 jobs. Government employers shed 500 jobs over the year for a decline of 0.5 percent.
Michael Oates, president and CEO of the Hudson Valley Economic Development Corp., noted that the region is still outpacing most of the state and said that several infrastructure development projects currently taking shape promise to boost job creation.
“When you look at where our unemployment rates are versus other parts of the state, we”™re doing a lot better,” he said. “We”™re starting to see a lot of strength and I think with some of these major projects the governor is talking about, and with the increase in activity from site selectors, brokers and developers, we”™re going to continue to see improvement over the near future.”
