Pittsburgh region’s unemployment dips to 4 percent
Jobless rate near record levels, but declining labor force a concern
Pittsburgh Post-Gazette
The seasonally adjusted unemployment rate in the Pittsburgh region fell slightly to 4 percent in July, approaching another 11-year low point as people continue to leave the workforce, according to new monthly jobs report released Tuesday by the Pennsylvania Department of Labor and Industry.
Joblessness fell by nearly 1 percent compared with the same period in July 2017, an indication that the region’s workforce continues to tighten amid a strengthening economy and a wave of retirements.
The Pittsburgh region’s labor force shrunk by 7,300 over the year, which means there were 7,300 fewer people employed or looking for work. A declining labor force has long been a concern of economists, who tempered their outlook even as unemployment has fallen to record levels.
Meanwhile, job growth was underwhelming, according to the report.
Employers added 10,900 jobs since July 2017 for 0.9 percent growth — the lowest rate in at least nine months, according to seasonally adjusted figures. That compares with statewide annual job growth of 1.2 percent in July.
The leisure and hospitality sector, which includes full-service restaurants and hotels, outpaced all large industries by adding 5,100 more jobs over the year — a 4 percent increase. (Those numbers are not seasonally adjusted for the gains and losses normally seen throughout the year, making it hard to compare monthly changes.)
And the construction industry, with a commercial building boom playing out in the heat of the summer, grew jobs by 3.2 percent, or 2,000 positions, compared with the previous July. Education and health services gained 4,800 positions over the year, for about 2 percent job growth.
The only major industry to report a decline was the financial sector, which cut 2,200 jobs, or 1.6 percent of its workforce, over the year.
The Pittsburgh metro area, which encompasses Allegheny and six surrounding counties, had the eighth-lowest jobless rate in July