News from New York State Department of Labor

For more information contact: Leo Rosales 518-457-5519

Largest Decline In Private Sector Jobs In More Than Seven Years

State's Unemployment Rate Climbs to Highest Level Since April 2004

ALBANY, NY (12/18/2008)(readMedia)-- New York State's private sector job count decreased over the month by 23,500, or 0.3 percent, to 7,219,700 (seasonally adjusted) in November 2008, the State Labor Department reported today. This was the largest over-the-month employment drop since October 2001. New York State's unemployment rate, after seasonal adjustment, increased from 5.7 percent in October 2008 to 6.1 percent in November 2008, its highest level since April 2004. The seasonally adjusted unemployment rate in New York City increased from 5.7 percent in October 2008 to 6.3 percent in November 2008. The unemployment rate for the balance of the state outside of New York City increased over the month, from 5.7 percent in October 2008 to 5.9 percent in November 2008.

"Most labor market indicators suggest conditions in New York State's economy continued to deteriorate in November. The state's private sector job count suffered its largest monthly drop since October 2001, the statewide unemployment rate registered its highest level since April 2004, and initial claims for Unemployment Insurance continued to rise markedly," 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, October 2008 versus November 2008. Non-seasonally adjusted data are valuable in year-to-year comparisons of the same month, for example, November 2007 versus November 2008.

1. Unemployment rates (seasonally adjusted):

The state's unemployment rate, after seasonal adjustment, increased from 5.7 percent in October 2008 to 6.1 percent in November 2008. In November 2007, the state's rate was 4.6 percent. The U.S. rate increased from 6.5 percent in October 2008 to 6.7 percent in November 2008. In November 2007, the nation's rate was 4.7 percent. The rate for New York City was 6.3 percent in November 2008, up from 5.7 percent in October 2008. In November 2007, the city's rate was 5.1 percent. The rate for the balance of the state outside of New York City was 5.9 percent in November 2008, up from 5.7 percent in October 2008. In November 2007, the balance of state's rate was 4.2 percent.

Unemployment Rates (seasonally adjusted)

	November 2008	October 2008	November 2007
New York State	6.1	5.7	4.6
United States	6.7	6.5	4.7
New York City	6.3	5.7	5.1
NYS, excluding NYC	5.9	5.7	4.2

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	November 2008	October 2008	November 2007
Regular UI, monthly initial claims	114,714	108,132	93,860
Regular UI, year-to-date initial claims	1,066,246	951,532	918,362
EUC08, monthly initial claims	23,901	26,916	NA
EUC08, cumulative initial claims to date	215,727	191,826	NA

3. Job data (seasonally adjusted):

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

The number of private sector jobs in New York State decreased by 23,500, or 0.3 percent, to 7,219,700 in November 2008, on a seasonally adjusted basis. Nationally, the number of private sector jobs also 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 23,300, or 0.3 percent, to 8,736,900 in November 2008. Nationally, the number of seasonally adjusted nonfarm jobs also decreased by 0.4 percent.

4. Nonfarm jobs since November 2007 (not seasonally adjusted):

Total nonfarm jobs	-32,700
Private sector jobs	-41,800

Since November 2007, the number of nonfarm jobs (private plus public sectors) in New York State decreased by 32,700, or 0.4 percent, and the number of private sector jobs decreased by 41,800, or 0.6 percent. Nationally, the number of nonfarm jobs decreased by 1.5 percent and the number of private sector jobs decreased by 2.0 percent between November 2007 and November 2008.

Educational and health services added the largest number of private sector jobs (+22,200) over the November 2007-November 2008 period, with the increase focused in health care and social assistance (+20,300). The job count also increased over the year in: government, other services, information and natural resources and mining.

Looking over the year, manufacturing (-17,700) registered the largest drop among declining industries. Manufacturing job losses were centered in non-durable goods (-10,200) with the largest non-durable declines in apparel manufacturing (-3,100) and chemical manufacturing (-2,400). Trade, transportation, and utilities (-16,800) had the second largest employment drop among declining industries, with the largest sector losses in retail trade (-13,900). The third largest sector employment drop was in financial activities (-15,900), with sector losses centered in securities, commodity contracts, and other financial investments (-13,100).

Industries With Job Gains:
Educational & Health Services	+22,200
Government	+9,100
Other Services	+2,700
Information	+500
Natural Resources & Mining	+100
Industries With Job Losses:
Manufacturing	-17,700
Trade, Transportation & Utilities	-16,800
Financial Activities	-15,900
Professional & Business Services	-13,300
Construction	-2,800
Leisure & Hospitality	-800

5. Nonfarm jobs since October 2008 (not seasonally adjusted):

Total nonfarm jobs	+12,000
Private sector jobs	No change

In November 2008, New York State had 8,841,300 total nonfarm jobs, including 7,302,600 private sector jobs. From October 2008 to November 2008, the number of nonfarm jobs increased by 12,000, while the number of private sector jobs was unchanged. On average, in the previous ten years, the number of nonfarm jobs in New York increased by 44,600 from October to November, and the number of private sector jobs increased by 31,100.

The not seasonally adjusted job count increased over the month in trade, transportation and utilities (+18,500), government (+12,000), educational and health services (+7,400), information (+2,400), and other services (+900). The job count decreased over the month in leisure and hospitality (-14,800), construction (-7,100), professional and business services (-3,400), financial activities (-2,500), manufacturing (-1,100), and natural resources and mining (-300).

6. New York State nonfarm job highlights since October 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.

Government

Seasonal increases at public elementary and secondary schools (which are counted as part of local government) accounted for most of the government sector's over-the-month job gain.

Educational and health services

The majority of this sector's over-the-month job increase was in health care and social assistance, particularly social assistance.

Information

Sector employment gains were focused in motion picture and sound recording.

Other services

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

Natural resource and mining

Natural resources and mining sector employment experienced its typical October-November decline.

Manufacturing

The drop in manufacturing employment was centered in non-durable goods, especially apparel manufacturing.

Financial activities

The financial activities sector's largest job losses were in finance and insurance, especially in securities, commodity contracts and other financial investments.

Professional and business services

The sector's over-the-month job losses were largest in administrative and support services.

Construction

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

Leisure and hospitality

Sector employment declined seasonally, with most component industries shedding jobs over the month.

7. Metropolitan Areas:

Job Growth and Unemployment Rates (not seasonally adjusted):

Albany-Schenectady-Troy: Since November 2007, the number of nonfarm jobs has decreased by 1,200, or 0.3 percent, and the number of private sector jobs has decreased by 500, or 0.1 percent. The area's unemployment rate was 5.2 percent in November 2008, compared with 4.8 in October and 3.8 in November 2007.

Binghamton: Since November 2007, the number of nonfarm jobs has decreased by 1,000, or 0.9 percent, and the number of private sector jobs has decreased by 1,100, or 1.2 percent. The area's unemployment rate was 6.0 percent in November 2008, compared with 5.3 in October and 4.1 in November 2007.

Buffalo-Niagara Falls: Since November 2007, the number of nonfarm jobs has decreased by 2,500, or 0.4 percent, and the number of private sector jobs has decreased by 4,700, or 1.0 percent. The area's unemployment rate was 6.2 percent in November 2008, compared with 5.6 in October and 4.5 in November 2007.

Glens Falls: Since November 2007, the number of nonfarm jobs has decreased by 800, or 1.5 percent, and the number of private sector jobs has decreased by 700, or 1.6 percent. The area's unemployment rate was 6.4 percent in November 2008, compared with 5.2 in October and 4.3 in November 2007.

Ithaca: Since November 2007, the number of nonfarm jobs has decreased by 100, or 0.2 percent, and the number of private sector jobs has decreased by 200, or 0.4 percent. The area's unemployment rate was 4.3 percent in November 2008, compared with 4.2 in October and 3.2 in November 2007.

Kingston: Since November 2007, the number of nonfarm jobs was unchanged, and the number of private sector jobs has decreased by 400, or 0.8 percent. The area's unemployment rate was 5.7 percent in November 2008, compared with 5.3 in October and 4.3 in November 2007.

Nassau-Suffolk: Since November 2007, the number of nonfarm jobs has decreased by 4,800, or 0.4 percent, and the number of private sector jobs has decreased by 7,100, or 0.7 percent. The area's unemployment rate was 5.2 percent in November 2008, compared with 4.9 in October and 3.7 in November 2007.

New York City (five boroughs): Since November 2007, the number of nonfarm jobs has decreased by 17,900, or 0.5 percent, and the number of private sector jobs has decreased by 17,100, or 0.5 percent. The area's unemployment rate was 6.2 percent in November 2008, compared with 5.7 in October and 5.0 in November 2007.

Poughkeepsie-Newburgh-Middletown: Since November 2007, the number of nonfarm jobs has increased by 300, or 0.1 percent, and the number of private sector jobs was unchanged. The area's unemployment rate was 5.6 percent in November 2008, compared with 5.4 in October and 4.0 in November 2007.

Putnam-Rockland-Westchester: Since November 2007, the number of nonfarm jobs has increased by 1,300, or 0.2 percent, and the number of private sector jobs has increased by 300, or 0.1 percent. The area's unemployment rate was 5.1 percent in November 2008, compared with 4.9 in October and 3.6 in November 2007.

Rochester: Since November 2007, the number of nonfarm jobs has decreased by 3,900, or 0.7 percent, and the number of private sector jobs has decreased by 4,200, or 1.0 percent. The area's unemployment rate was 5.9 percent in November 2008, compared with 5.5 in October and 4.3 in November 2007.

Syracuse: Since November 2007, the number of nonfarm jobs has decreased by 1,300, or 0.4 percent, and the number of private sector jobs has decreased by 500, or 0.2 percent. The area's unemployment rate was 6.0 percent in November 2008, compared with 5.6 in October and 4.1 in November 2007.

Utica-Rome: Since November 2007, the number of nonfarm jobs has decreased by 800, or 0.6 percent, and the number of private sector jobs has decreased by 1,000, or 1.0 percent. The area's unemployment rate was 6.0 percent in November 2008, compared with 5.2 in October and 4.2 in November 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 Statistics. 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.

See State and Area Jobs Data

See State and Area Unemployment Rates

Jobs and Unemployment Fact Sheet

Labor Market Overview