New York State's Recession Deepened In 2009

Highest Annual Average Unemployment Rate Since 1992

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ALBANY, NY (03/04/2010)(readMedia)-- Newly revised jobs data show New York State's private sector job count, after seasonal adjustment, peaked at 7,313,300 in April 2008, the State Labor Department reported today. From April 2008 to December 2009, the private sector count declined rapidly, resulting in a loss of 352,700 jobs (-4.8 percent).

New York State's private sector employment count averaged 7,031,900 in 2009, down 245,400, or 3.4 percent, from 2008. By way of comparison, private sector jobs in the nation decreased by 5.2 percent between 2008 and 2009. Over the same period, total nonfarm jobs, including government, in New York decreased 236,900, or 2.7 percent, while the number of U.S. nonfarm jobs dropped by 4.3 percent.

"Our newly-revised jobs data indicate that the impact of the national recession on New York State's economy was deeper than first estimated. Between 2008 and 2009, the drop in New York State's private sector job count increased from 183,300 to 245,400. In addition, new labor force data show that the state's average annual unemployment rate climbed from 5.3 percent in 2008 to 8.4 percent in 2009, its highest level since 1992," said Peter A. Neenan, Ph.D., director of the Division of Research and Statistics.

Jobs data are revised at the end of each year for all states and the nation, as more comprehensive information, or benchmarks, become available from employers' unemployment insurance tax records. The benchmark process resulted in revisions to all jobs data back to April 2008. March 2009 is the "reference month" and is the latest month for which employment estimates will not be revised in the future. Estimates for April 2009 and later are still subject to revision in the next round of annual revisions in early 2011.

Monthly resident labor force data, including unemployment rates, are also revised at the end of each year as part of the normal, annual end-of-year benchmarking process, following procedures specified by the U. S. Bureau of Labor Statistics. After revision, the annual statewide unemployment rate increased from 5.3 percent in 2008 to 8.4 percent in 2009, its highest annual level since 1992. The revised data also indicate that the annual average number of unemployed in New York State climbed from 514,300 in 2008 to 813,400 in 2009, an increase of 299,100 or 58.1 percent.

Job data for metropolitan areas (not seasonally adjusted): 2008-2009

Area job growth data for 2008 and 2009 are shown in the table below. All of the state's metropolitan areas experienced weaker private sector job performance in 2009 than in 2008. Between 2008 and 2009, the annual average private sector job count decreased in every metropolitan area. In 2009, declines in private sector employment were most pronounced in Putnam-Rockland-Westchester (-4.6 percent), Binghamton (-4.3 percent), Nassau-Suffolk (-3.7 percent), and Kingston (-3.6 percent). Metro areas in New York State with the smallest percentage declines in private sector jobs during 2008-2009 included: Ithaca (-1.4 percent), Utica–Rome (-2.0 percent), Glens Falls (-2.5 percent), and Albany-Schenectady-Troy (-2.6 percent).

Percent Change in Annual Average Job Counts:

United States, New York State, Regions, and Metropolitan Areas

2007-2008 and 2008-2009

Total Nonfarm Total Nonfarm Private Sector Private Sector
2007-2008 2008-2009 2007-2008 2008-2009
United States -0.6% -4.3% -1.0% -5.2%
New York State 0.7% -2.7% 0.6% -3.4%
Regions
Downstate (10-county area) 0.9% -2.9% 0.9% -3.5%
New York City 1.3% -2.8% 1.4% -3.3%
Suburban Counties -0.1% -3.3% -0.2% -4.0%
Upstate (52-county area) 0.4% -1.9% 0.1% -2.5%
Metro Areas 0.4% -2.4% 0.2% -3.0%
Non-metro Counties 0.2% 0.0% -0.2%
Metropolitan Areas
Albany-Schenectady-Troy 0.7% -2.1% 0.6% -2.6%
Binghamton 0.3% -3.0% -0.1% -4.3%
Buffalo-Niagara Falls 0.8% -2.6% 0.7% -3.2%
Glens Falls -0.2% -1.1% 0.5% -2.5%
Ithaca 0.9% -0.5% 1.3% -1.4%
Kingston -1.1% -2.7% -1.9% -3.6%
Nassau-Suffolk* -0.1% -3.0% -0.3% -3.7%
New York City* 1.3% -2.8% 1.4% -3.3%
Poughkeepsie-Newburgh-Middletown -0.1% -2.6% -0.6% -3.2%
Putnam-Rockland-Westchester* 0.1% -3.9% -0.2% -4.6%
Rochester 0.3% -2.5% 0.1% -3.2%
Syracuse 0.3% -2.6% 0.1% -3.2%
Utica-Rome 0.1% -1.5% -0.5% -2.0%
*Denotes Downstate area

Job data by industry: 2008-2009

Statewide industry job growth data for 2008 and 2009 are presented in the table below. Educational and health services added the most jobs (+34,000) of any private sector industry between 2008 and 2009. Gains in this sector were centered in health care and social assistance (+25,000). The only other industry group that added jobs during 2008-2009 was government (+8,400), which grew due to gains at the local level (+10,700).

Trade, transportation and utilities experienced the largest employment decline, shedding 66,800 jobs between 2008 and 2009. Sector losses were concentrated in wholesale and retail trade (-55,300). Professional and business services had the second largest number of job losses (-60,300) from 2008 to 2009. Most losses in this group were in administrative and support services (-32,000), which includes temporary help agencies. Manufacturing lost 54,800 jobs between 2008 and 2009, with losses centered in durable goods (-35,400). Other industries that lost jobs over the year include: financial activities; construction; information; leisure and hospitality; other services; and natural resources and mining.

Change in Annual Average Jobs by Industry:

New York State, 2008-2009

(data in thousands)

Annual Average Jobs Annual Average Jobs
2008 2009 Net Change Percent Change
Total Nonfarm 8,792.8 8,555.9 -236.9 -2.7%
Private Sector 7,277.3 7,031.9 -245.4 -3.4%
Natural Resources & Mining 6.3 5.4 -0.9 -14.3%
Construction 359.7 323.9 -35.8 -10.0%
Manufacturing 531.9 477.1 -54.8 -10.3%
Durable Goods 316.9 281.5 -35.4 -11.2%
Non-durable Goods 214.9 195.6 -19.3 -9.0%
Trade, Trans. & Utilities 1,522.8 1,456.0 -66.8 -4.4%
Wholesale Trade 351.6 330.5 -21.1 -6.0%
Retail Trade 895.4 861.2 -34.2 -3.8%
Trans., Warehousing & Utilities 275.8 264.3 -11.5 -4.2%
Information 263.6 253.7 -9.9 -3.8%
Financial Activities 720.4 677.9 42.5 -5.9%
Professional & Business Services 1,156.6 1,096.3 -60.3 -5.2%
Educational & Health Services 1,631.2 1,665.2 34.0 2.1%
Educational Services 375.7 384.7 9.0 2.4%
Health Care & Social Assistance 1,255.5 1,280.5 25.0 2.0%
Leisure & Hospitality 717.2 711.2 -6.0 -0.8%
Other Services 367.6 365.1 -2.5 -0.7%
Government 1,515.5 1,523.9 8.4 0.6%

JANUARY 2010 JOB NUMBERS

In January 2010, New York State's seasonally adjusted private sector job count increased by 30,500 or 0.4 percent to 6,991,100, the State Labor Department reported today. Since the state's private sector job count peaked in April 2008, it has lost 322,200 private sector jobs through January 2010, or about 80 percent of the employment added during the state's 2003-2008 economic expansion. The statewide total nonfarm job count (private plus public sectors) also increased over the month -- by 25,500, or 0.3 percent, to 8,486,400 in January 2010.

Note: When comparing different months, seasonally adjusted data provide the most valid comparison; for example, December 2009 versus January 2010. Non-seasonally adjusted data are valuable in year-to-year comparisons of the same month; for example, January 2009 versus January 2010.

1) Unemployment rates (seasonally adjusted):

New York State's seasonally adjusted unemployment rate decreased from 8.9 percent in December to 8.8 percent in January 2010. In January 2009, the state's rate was 7.1 percent. The U.S. rate decreased from 10.0 percent in December 2009 to 9.7 percent in January 2010. In January 2009, the nation's rate was 7.7 percent.

New York City's rate decreased from 10.5 percent in December to 10.4 percent in January 2010. In January 2009, the city's rate was 7.5 percent. The rate outside of New York City decreased from 7.8 percent in December to 7.7 percent in January 2010. In January 2009, the rate outside of New York City was 6.8 percent.

Unemployment Rates* (seasonally adjusted)

January 2010* December 2009 January 2009
New York State 8.8 8.9 7.1
United States 9.7 10.0 7.7
New York City 10.4 10.5 7.5
NYS, excluding NYC 7.7 7.8 6.8

*Data are preliminary and subject to change.

See State and Area Job Data

See State and Area Unemployment Rates

See Jobs and Unemployment Fact Sheet

See Labor Market Overview

For the complete January 2010 Job Numbers Report, please see the attached PDF document, "NYSDOL January 2010 Job Numbers Report."