Labor Seal NYS Department of Labor                          

Contact Leo Rosales Cell: 518-281-6167 Office: 518-457-5519 Email: leo.rosales@labor.ny.gov www.labor.ny.gov
STATE LOSES MORE THAN 100,000 PRIVATE SECTOR JOBS IN LAST THREE MONTHS
State's Unemployment Rate Climbs to Highest Level Since 1994

Albany, NY (January 22, 2009) - New York State's private sector job count decreased over the month by 49,300, or 0.7 percent, to 7,150,900 (seasonally adjusted) in December 2008, the State Labor Department reported today. This was the largest over-the-month drop in employment since October 2001 (when it declined by 86,400). Over the past three months, the state has lost 102,900 private sector jobs. Since the beginning of the national recession in December 2007, New York State has lost 120,600 private sector jobs.

New York State's unemployment rate, after seasonal adjustment, increased from 6.0 percent in November 2008 to 7.0 percent in December 2008 -- its highest level since June 1994. The number of unemployed in the state (671,500) in December 2008 was at its highest level since October 1993 (seasonally adjusted). The over-the-month increases in the statewide unemployment rate (+1.0 percentage point) and in the number of unemployed (+89,800) were both records (current data extend back to 1976).

"The severity of the current recession in New York State is underscored by the labor market statistics released today. In just the last three months, the state has lost more than 100,000 private sector jobs, including 49,300 in December 2008. This is the steepest one-month drop since October 2001 in the aftermath of the World Trade Center attacks. The number of unemployed in the state is at its highest level since October 1993; while New York State reached its highest unemployment rate since June 1994. Since the beginning of the national recession in December 2007, the number of unemployed New Yorkers has increased by more than 50 percent," said Peter A. Neenan, Ph.D., director of the Division of Research and Statistics.

Note: When comparing different months, seasonally adjusted data provide the most valid comparison, for example, November 2008 versus December 2008. Non-seasonally adjusted data are valuable in year-to-year comparisons of the same month, for example, December 2007 versus December 2008.

1.) Unemployment rates (seasonally adjusted)

The state's unemployment rate, after seasonal adjustment, increased from 6.0 percent in November 2008 to 7.0 percent in December 2008. In December 2007, the state's rate was 4.6 percent. The U.S. rate increased from 6.8 percent in November 2008 to 7.2 percent in December 2008. In December 2007, the nation's rate was 4.9 percent.

The rate for New York City was 7.4 percent in December 2008, up from 6.3 percent in November 2008. In December 2007, the city's rate was 5.1 percent. The rate for the balance of the state outside of New York City was 6.6 percent in December 2008, up from 5.9 percent in November 2008. In December 2007, the balance of state's rate was 4.3 percent.

  
  Unemployment Rates (seasonally adjusted)
  December 2008 November 2008 December 2007
New York State 7.0 6.0 4.6
United States 7.2 6.8 4.9
New York City 7.4 6.3 5.1
NYS, excluding NYC 6.6 5.9 4.3

2.) Unemployment Insurance and EUC08 data (not seasonally adjusted)

Under the Regular Unemployment Insurance (Regular UI) program, individuals who are involuntarily unemployed through no fault of their own may be eligible for up to 26 weeks of benefits as long as they remain ready, willing and able to work, and are actively seeking employment. Under the temporary federal Emergency Unemployment Compensation (EUC08) program, enacted on June 30, 2008, as part of the Economic Stimulus Act of 2008, claimants who have exhausted their 26 weeks of regular benefits may receive up to 13 weeks of additional benefits. Federal legislation was signed into law on November 21, 2008, providing for an additional seven weeks of EUC08 benefits, increasing the maximum duration to 20 weeks under this program. Monthly benefit claims data for these two programs are noted below.

  
Program and Data Item December 2008 November 2008 December 2007
Regular UI, monthly initial claims
173,381
114,714
97,700
Regular UI, year-to-date initial claims
1,239,627
1,066,246
1,016,062
EUC08, monthly initial claims
28,378
23,901
NA
EUC08, cumulative initial claims to date
244,105
215,727
NA

3.) Job data (seasonally adjusted):

New York State and the nation, November 2008 - December 2008:

The number of private sector jobs in New York State decreased by 49,300, or 0.7 percent, to 7,150,900 in December 2008, on a seasonally adjusted basis. Nationally, the number of private sector jobs decreased by 0.5 percent over the same period. After seasonal adjustment, the number of nonfarm jobs in the state decreased over the month by 54,000, or 0.6 percent, to 8,661,200 in December 2008. Nationally, the number of seasonally adjusted nonfarm jobs decreased by 0.4 percent.

4.) Nonfarm jobs since December 2007 (not seasonally adjusted):
  Total nonfarm jobs   -121,400
  Private sector jobs   -122,200

Since December 2007, the number of nonfarm jobs (private plus public sectors) in New York State decreased by 121,400, or 1.4 percent, and the number of private sector jobs decreased by 122,200, or 1.7 percent. Nationally, the number of nonfarm jobs decreased by 2.0 percent and the number of private sector jobs decreased by 2.6 percent between December 2007 and December 2008.

Educational and health services added the largest number of private sector jobs (+9,300) over the December 2007-December 2008 period, with the increase focused in health care and social assistance (+18,000). The job count also increased over the year in other services and government.

Looking over the year, trade, transportation, and utilities (-34,600) registered the largest drop among declining industries, with sector losses centered in retail trade (-27,900). Professional and business services (-32,100) had the second largest employment drop among declining industries, with sector employment losses centered in administrative and support services (-27,200). The third largest sector employment drop was in manufacturing (-20,300), with the largest decline registered in durable goods (-11,000). Durable goods losses were centered in fabricated metal products (-2,000). Losses in non-durable goods (-9,300) were largest in apparel (-2,600) and chemicals (-2,300). Employment in financial activities also declined considerably (-19,800), with weakness largest in securities, commodity contracts and other financial investments (-14,900).

Industries with Job Gains:
  Educational & Health Services   +9,300
  Other Services   +1,800
  Government   +800
 
 
Industries with Job Losses:
  Trade, Transportation & Utilities   -34,600
  Professional & Business Services   -32,100
  Manufacturing   -20,300
  Financial Activities   -19,800
  Construction   -16,300
  Information   -5,600
  Leisure & Hospitality   -4,400
  Natural Resources & Mining   -200
 
5.) Nonfarm jobs since November 2008 (not seasonally adjusted):
  Total nonfarm jobs   -41,000
  Private sector jobs   -40,600

In December 2008, New York State had 8,778,500 total nonfarm jobs, including 7,242,400 private sector jobs. From November 2008 to December 2008, the number of nonfarm jobs decreased by 41,000, while the number of private sector jobs decreased by 40,600. On average, in the previous ten years, the number of nonfarm jobs in New York increased by 33,300 from November to December, and the number of private sector jobs increased by 31,300.

The not seasonally adjusted job count increased over the month in trade, transportation and utilities (+8,400), financial activities (+1,000), and other services (+600). The job count decreased over the month in construction (-17,700), professional and business services (-13,600), educational and health services (-10,600), manufacturing (-5,900), information (-1,600), natural resources and mining (-700), leisure and hospitality (-500), and government (-400).

6.) New York State nonfarm job highlights since November 2008 (not seasonally adjusted):

Trade, transportation and utilities
Most of this month's employment increase reflected seasonal gains in retail trade, particularly in general merchandise stores and clothing and clothing accessories stores.

Financial activities
Sector employment increased over the month, with gains in real estate and rental and leasing more than offsetting losses in finance and insurance.

Other services
This sector's over-the-month job growth was centered in religious, grantmaking, civic, professional and similar organizations.

Government
The drop in this sector's employment was centered in local government.

Leisure and hospitality
The leisure and hospitality sector job losses were largest in accommodation and food services.

Natural resource and mining
Natural resources and mining employment seasonally declined in December.

Information
Sector employment losses were focused in motion picture and sound recording.

Manufacturing
The drop in manufacturing employment was centered in durable goods, especially computer and electronic product manufacturing.

Educational and health services
Educational services accounted for the majority of this sector's job loss in December, due largely to seasonal declines at private colleges, universities, and professional schools.

Professional and business services
The sector's over-the-month job losses were largest in administrative and support services, particularly employment services.

Construction
Construction sector employment decreased seasonally, especially in specialty trade contractors.

7.) Metropolitan Areas:

Job Growth (not seasonally adjusted):

Albany-Schenectady-Troy: Since December 2007, the number of nonfarm jobs has decreased by 6,000, or 1.3 percent, and the number of private sector jobs has decreased by 4,800, or 1.4 percent. The area's unemployment rate was 5.9 percent in December 2008, compared with 5.2 in November and 4.1 in December 2007.

Binghamton: Since December 2007, the number of nonfarm jobs has decreased by 1,600, or 1.4 percent, and the number of private sector jobs has decreased by 1,800, or 2.0 percent. The area's unemployment rate was 7.1 percent in December 2008, compared with 6.0 in November and 4.7 in December 2007.

Buffalo-Niagara Falls: Since December 2007, the number of nonfarm jobs has decreased by 7,600, or 1.4 percent, and the number of private sector jobs has decreased by 9,400, or 2.0 percent. The area's unemployment rate was 7.2 percent in December 2008, compared with 6.2 in November and 5.2 in December 2007.

Glens Falls: Since December 2007, the number of nonfarm jobs has decreased by 900, or 1.7 percent, and the number of private sector jobs has decreased by 800, or 1.9 percent. The area's unemployment rate was 7.7 percent in December 2008, compared with 6.4 in November and 5.1 in December 2007.

Ithaca: Since December 2007, the number of nonfarm jobs has decreased by 400, or 0.6 percent, and the number of private sector jobs has decreased by 500, or 0.9 percent. The area's unemployment rate was 4.7 percent in December 2008, compared with 4.3 in November and 3.1 in December 2007.

Kingston: Since December 2007, the number of nonfarm jobs has decreased by 800, or 1.2 percent, and the number of private sector jobs has decreased by 900, or 1.8 percent. The area's unemployment rate was 6.5 percent in December 2008, compared with 5.7 in November and 4.6 in December 2007.

Nassau-Suffolk: Since December 2007, the number of nonfarm jobs has decreased by 18,900, or 1.5 percent, and the number of private sector jobs has decreased by 21,600, or 2.0 percent. The area's unemployment rate was 5.8 percent in December 2008, compared with 5.2 in November and 3.8 in December 2007.

New York City (five boroughs): Since December 2007, the number of nonfarm jobs has decreased by 53,600, or 1.4 percent, and the number of private sector jobs has decreased by 49,100, or 1.5 percent. The area's unemployment rate was 7.2 percent in December 2008, compared with 6.2 in November and 5.2 in December 2007.

Poughkeepsie-Newburgh-Middletown: Since December 2007, the number of nonfarm jobs has decreased by 2,900, or 1.1 percent, and the number of private sector jobs has decreased by 3,000, or 1.5 percent. The area's unemployment rate was 6.3 percent in December 2008, compared with 5.6 in November and 4.1 in December 2007.

Putnam-Rockland-Westchester: Since December 2007, the number of nonfarm jobs has decreased by 4,400, or 0.7 percent, and the number of private sector jobs has decreased by 5,200, or 1.1 percent. The area's unemployment rate was 5.6 percent in December 2008, compared with 5.1 in November and 3.7 in December 2007.

Rochester: Since December 2007, the number of nonfarm jobs has decreased by 6,300, or 1.2 percent, and the number of private sector jobs has decreased by 5,000, or 1.1 percent. The area's unemployment rate was 6.7 percent in December 2008, compared with 5.9 in November and 4.8 in December 2007.

Syracuse: Since December 2007, the number of nonfarm jobs has decreased by 2,100, or 0.6 percent, and the number of private sector jobs has decreased by 1,000, or 0.4 percent. The area's unemployment rate was 6.9 percent in December 2008, compared with 6.0 in November and 4.6 in December 2007.

Utica-Rome: Since December 2007, the number of nonfarm jobs has decreased by 900, or 0.7 percent, and the number of private sector jobs has decreased by 1,300, or 1.3 percent. The area's unemployment rate was 6.9 percent in December 2008, compared with 6.0 in November and 4.8 in December 2007.

Note: Labor force statistics, including the unemployment rate, for New York and every other state are based on statistical regression models specified by the U. S. Bureau of Labor Statistic (BLS). Jobs data for New York are obtained from a survey of 18,000 business establishments. Jobs data exclude agricultural workers, the self-employed, unpaid family workers and domestic workers in private households. Revisions to the November 2008 preliminary Current Employment Statistics (CES) estimates were unusually large in many states, including New York. The revisions reflect the routine incorporation of additional sample reports, and the use of improved estimate review procedures provided by the BLS. The procedures are designed to improve the overall accuracy of individual state estimates, bringing the aggregate employment change across states into closer alignment with the change in national employment reflected in the estimates produced and published by BLS. The new review procedures more closely align the state review process with the BLS review process by discounting the influence of historical trends.

See State and Area Jobs Data

See State and Area Unemployment Rates

See Jobs and Unemployment Fact Sheet

See Labor Market Overview