Area joblesss rate dips

JOBS SCENE Unemployment rate in area still 1 percentage point higher than last year

The region’s unemployment rate dropped slightly to 5.8 percent in March, but stood more than a percentage point higher than a year ago.

The state rate was unchanged at 4.9 percent, while the national rate increased two tenths of a percentage point to 5.1 percent.

Across the state, unemployment rates ranged from a low of 3.6 percent in the Lebanon labor market to 5.9 percent in Johnstown.

The Scranton/Wilkes-Barre labor market recorded a seasonally adjusted rate of 4.7 percent in March 2007 when there were 3,200 fewer people in the unemployment column, according to data released today by the Pennsylvania Department of Labor and Industry.

Last month 16,100 people from the labor market made up of Lackawanna, Luzerne and Wyoming counties were out of work. The tally includes people who live in the local market but work elsewhere. The unemployment total for March dropped from 16,400 in February.

While unemployment contracted on one scale measured by the department, in another measurement nonfarm jobs expanded by 1,900.

Within the three-county region jobs rose to 260,600 over the month due to growth in the two main employment sectors. The goods-producing sector grew by 200 to 42,600 and the service-providing sector by 1,700 to 218,000.

Within the goods-producing sector construction, natural resources and mining jobs were up 100 from February. Manufacturing also rose by 100 jobs to a level of 32,300, but the gain has been overshadowed by losses in the category. During the last five years manufacturing jobs decreased by 4,800 or 12.9 percent.

The service sector posted a 500-job gain in the education and health services category, pushing it to a record level of 52,000 jobs. The leisure and hospitality category grew by 400 jobs.

“It’s a service economy,” said Joseph Merlina, an industry and business analyst with the department.

The gain in nonfarm jobs represented a four-tenths of a percentage point increase, double that of the state, Merlina said.

He further explained how the March unemployment rate turned out to be lower than February’s figure. The final number for February changed from the one first reported by the state.

“When we issue the report this is done on preliminary data,” he said, explaining why the department reported February’s unemployment rate at 5.7 percent. “Once all the data was in it was 5.9 percent.”

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