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Unemployment Rates (not seasonally adjusted) Utica-Rome MSA (Oneida and Herkimer Counties)
The unemployment rate rose dramatically from 6.9 percent in December 2008 to 7.8 percent in December 2009 due to the continuing effects of the national recession. The jobless rate increased from November 2009 to December 2009 following the historical trend of seasonal layoffs. The increase in the jobless rate from November to December follows the historical trend. In the past 10 years, the rate had increased from November to December 8 times. Due to continued seasonal job losses the unemployment rate is expected to rise from December to January. In the past 10 years, the rate always increased from December to January. Change in nonfarm jobs since October 2008Net change -2,100 For the 12-month period ending December 2009, the nonfarm job count in the Utica-Rome metro area decreased by 2,100, or 1.6 percent, to 132,000, its lowest December level since December 1997. Nonfarm jobs in the Utica-Rome metro area declined by 1.6 percent from December 2008 to December 2009, less than in the state (-1.9 percent) or nation (-3.0 percent). However, from December 2001 to December 2007, Utica-Rome's nonfarm job count decreased by 0.4 percent, compared with an increase at the state (+3.8 percent) and national (+5.6 percent) levels. The Utica-Rome area, like many Upstate areas, did not participate in the economic recovery following the 2000-2001 downturn. Thus, the latest downturn has not affected the local area to the degree that it has impacted the nation or state. Local job losses occurred in trade, transportation and utilities (-700), manufacturing (-600), leisure and hospitality (-500), professional and business services (-400), information (-200), natural resources, mining and construction (-200), other services (-200), and financial activities (-100). Job losses in trade, transportation and utilities (-700) occurred in retail trade (-300), transportation, warehousing and utilities (-200) and wholesale trade (-200). Manufacturing employment has declined 10,300 or 47 percent since December 1990. Job gains occurred in educational and health services (+800), primarily in health services. The educational and health services sector has proved to be recession-proof, reaching its highest December employment level on record in December 2009. Since 1990 employment in education and health services has increased 10,800 or 66 percent. In fact, educational and health services only decreased once from the previous December level (1994 to 1995). Government employment was unchanged over the year. Good News The proposed Hardscrabble wind farm, to be located in Herkimer County, has been approved to receive a potion of $96 million in state funds for clean-energy projects from the New York State Energy Research and Development Authority (NYSERDA). Iberdrola Renewables has proposed to build 37 wind turbines brining an estimated $91 million of in-state benefits over three years through new jobs, increased property tax revenues, royalty payments to land owners and other economic activity. Bad News ConMed Corp., a manufacturer of medical supplies located in Utica (Oneida County), could lay off as many as 100 local employees over the next eight months as more jobs are moved to Mexico. The layoffs would be part of a new company restructuring plan focused on keeping ConMed competitive with other medical manufacturers. In June 2008, ConMed announced plans to move 150 local positions to production facilities in Mexico and the State of Georgia. Focus on the Mohawk Valley National Recession Finally Hits the Mohawk Valley
By Mark Barbano, Regional Economist, Mohawk Valley Region The current national recession, which officially started in December 2007, finally arrived with a vengeance in the Mohawk Valley region (Fulton, Herkimer, Montgomery, Oneida, Otsego and Schoharie counties) in the third quarter of 2008. This article reviews how the Mohawk Valley is weathering the latest recessionary storm, how certain key industries have fared, and how this latest slump compares to previous ones in the region. According to data from the Quarterly Census of Employment and Wages program, the economic downturn did not hit the Mohawk Valley until summer 2008. During the first and second quarters of 2008, the region’s total job count had been running 400-500 above year-earlier levels. However, the region experienced a reversal of fortune in third quarter 2008 as the regional employment count fell 760 below year-ago levels. Over-the-year job losses in the region worsened significantly in fourth quarter 2008 (-1,270) and first quarter 2009 (-4,220). How Industries Fared During This Recession Not surprisingly, manufacturing has been hit the hardest of any sector in the region; employment fell by 1,580 between 2008 and 2009. (Note: In this analysis, 2009 refers to the first quarter of 2009 and 2008 refers to the first quarter of 2008.) Factory job reductions were widespread, but concentrated in printing and related support activities, primary metals, wood products and machinery. In 2009, the region’s sole bright spot in manufacturing was transportation equipment, which grew to its highest jobs level since 2001. Over the longer term, the region’s manufacturers have suffered significant job losses, with sector employment dropping 36.6 percent between 2000 and 2009. The trade, transportation and utilities sector experienced the second steepest set of job cuts (-1,030) in the region between 2008 and 2009. Most of the decline occurred in retail trade (-870), due in part to losses at motor vehicles and parts dealers brought on by weakened demand for new cars. Other retail job shrinkage was centered in building material and garden supply stores; health and personal care stores; and gasoline stations. Employment drops in warehousing and storage also contributed to the decline; this industry peaked in 2007 following expansion at the numerous distribution centers in the region. Over the 2008-2009 timeframe, professional and business services suffered the third largest employment decline (-790) of any sector in the Mohawk Valley. More than half of this sector’s drop occurred in temporary help agencies (-410) -- typically among the first to contract after the onset of a downturn in the economy. Natural resources, mining and construction (-540) and financial activities (-460) also experienced relatively large employment shrinkage between 2008 and 2009. The job trimming in the former sector was centered in specialty trade contractors and construction of buildings. The loss in the latter was due in part to the closing of the Federal Reserve’s check processing facility in Oneida County, as well as employment drops at commercial banking and insurance companies. The Mohawk Valley’s educational and health services sector has been virtually “recessionproof” during this downturn. With almost 39,000 employees in the first quarter of 2009 and total wages of $1.35 billion paid during the trailing 12-month period, it is one of the largest sectors in the region. Moreover, it was the only sector where employment grew (+740) between 2008 and 2009. Over the 2000-2009 period, jobs in this sector increased every year, growing by a total of 6,730 or 21.1 percent. Long-term projections for the 2006-2016 suggest this trend will continue; sector employment is expected to increase by 13.3 percent over this 10-year span. Not Back to the Future There are several differences between this downturn and the 2001 recession. First, this recession has been much more severe; total jobs dropped by 4,220 (-2.2 percent) between 2008 and 2009. During the last recession (2001-2002), the local job loss was 2,660 (-1.4 percent). A second important difference is that in 2001 manufacturing dominated local job losses. From 2001 to 2002, the job count in manufacturing fell by 2,850, or 10.5 percent, as factory job losses actually exceeded total losses in the region -- gains in other sectors offset some of the manufacturing job losses. However, during the current downturn, manufacturing losses represent less than 40 percent of the region’s total job decline. Looking ahead, recovery in the region’s labor market will likely lag any advances in overall economic conditions. However, if the national economic picture improves, the outlook for the Mohawk Valley region should gradually follow.
For more information on expansions and contractions at businesses located in Herkimer, Madison and Oneida counties please visit: http://www.labor.state.ny.us/workforceindustrydata/moh/mohec.shtm Information compiled by the Labor
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