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According to statistics released today from the NYS Labor Department, the Syracuse economy is showing signs of recovery and has registered some very modest private sector job growth. The Syracuse Metropolitan Statistical Area which includes Onondaga, Oswego, and Madison counties added 600 new jobs during a twelve month period from May 2009 to May 2010. All of the job growth came from the private sector with government employment dropping 100 positions. The Educational and Health Services sector grew by 2,100 jobs, followed by 400 new jobs in Professional and Business Services. Construction and Leisure and Hospitality both added 300 jobs over the same time period. Financial Services and manufacturing both experienced losses of 500+ jobs each.
At 0.3%, Syracuse experienced the second highest private sector job growth rate out of the state's 13 metropolitan areas. New York as a whole lost -0.4% of its private sector jobs base during the same time frame. The upstate average private sector job growth rate was -0.4%. While such tepid growth is no reason for celebration, this is the first month since November 2007 that the Syracuse area has added jobs over a 12 month period, even though some upstate metros eked out nominal gains in the earlier part of this year.
The unemployment rate for the three county metro area stood at 7.6%, compared with the state average of 8.3% and national average of 8.2%. Unemployment rates for metro area counties are as follows:
Onondaga County: 7.3% (holding steady)
Madison County: 7.1% (down from 7.6% last month)
Oswego County: 9.2% (up from 9.0% last month but down from 9.6 in May 2009)
According to the State Labor Department, Syracuse was the only major upstate metro area to experience positive job growth over a 12 month period from July 2009 to July 2010. The Syracuse MSA, which includes Onondaga, Madison and Oswego counties gained 1,200 non farm jobs or +0.4% of the area's jobs base in the last year. The government sector actually lost 400 jobs, while the private sector, an essential indicator of a vibrant economy added 1,700 jobs or +0.7%. To be sure, the job growth is certainly anemic and does not reflect some likely layoffs at New Process Gear. Syracuse seems to be holding steady, especially in light of a reversal in the economic recovery in nearby Western New York. The Buffalo area lost 1,900 jobs while the Rochester area shed 6,000 jobs over the same period in which Syracuse registered modest job growth.
According to labor statistics released by the state on 10/21, the Syracuse area added 900 jobs or 0.3% of its jobs base from September 2009 to September 2010. During the same period, the state lost 0.4% of its total non farm jobs and 0.2% of private sector jobs. While the growth rate in Syracuse is certainly anemic, the area managed to register a net gain in jobs despite losing 1,600 government jobs. The Syracuse Metropolitan area which consists of Onondaga, Madison, and Oswego counties actually gained a very respectable 2,500 private sector jobs in September or 1% of its total job count. Private sector job growth in Syracuse accounted for 37% of the 6,700 private sector jobs added in the 52 county upstate New York region during this period.
Buffalo and Rochester measured scant private sector jobs growth that was overshadowed by large losses in the public sector.
Syracuse's economy is definately on the rise and is ahead of the curve when you compare it to the rest of Upstate and other cities our size. I read an article in the Buffalo News that reflected on similair news for Buffalo, however their aticle was much more negative than the Post Standard's. Seems WNY is still getting hit harder than we are.....
Region once more loses jobs - Business - The Buffalo News (http://www.buffalonews.com/business/article227387.ece - broken link)
CNY is improving quicker then other regions, and and it will only get better when you think about the PS article about $225 million of investment that is coming from Upstate Medical in the upcoming years will only help all the more, which was announced on Syracuse.com yesterday.
Syracuse Area Economy Adds 3,800 Jobs in Professional and Business Services Sector; Losses Continue in Manufacturing
During the past year, the rate of job growth in Syracuse has been fairly tepid with small year-to-year gains overall and continued losses in the manufacturing, financial services, and information sectors and gains in health services and higher education. In the past two months, however, job growth in Professional and Business Services, a key sector that largely consists of white collar jobs including accountants, architects, administrative support workers, attorneys, computer consultants, engineers, scientists, and management professionals. Other services like Advertising, Public Relations, Marketing, Aviation Consulting and Defense Contracting would also fall into this category. As a whole, these jobs are high paying and the continued growth of this sector will help determine whether Central New York will be able to retain and attract recent college grads, young profesionals, and middle-aged workers.
Over the past year, the number of jobs in Professional and Business Services in Greater Syracuse has expanded by a robust 11.5%, a growth rate that is more consistent with fast growing areas like Austin, Charlotte, Dallas, Houston, Raleigh and major coastal metro areas with large concentrations of knowledge-based jobs and defense contractors like Washington, D.C and Boston. Earlier in the year, this category was actually losing several hundred jobs when compared to the previous year. The average annual growth rate for the Professional and Business Services sector in the Syracuse area has been 2% to 3% over the past few years.
What is somewhat interesting is that this sector is heavily dependent on business and government spending, two sources of funding that has dried up over the past few years. Many cities, including ones with excellent business climates and a highly educated workforce have experienced job losses in this sector. While continued cutbacks in military spending and other government funding willl have reverberations throughout the defense industry; the fact that Syracuse has gained a substantial number of jobs in a sector that is very diverse and also high paying is good news. Interestingly, Rochester, which has led the state in per capita job growth over the past 12 months, only gained 3,700 jobs in Professional and Business Services which represents a very small fraction of Syracuse's 11.5% growth percentage as Rochester has a labor force that is significantly larger. Buffalo had an even more anemic 2% growth rate in this sector.
IMO private sector gains are crucial. We may see overall numbers stay flat in some areas as public sector jobs are scaled back or phased out due to budget constraints (and/or recognition that the size of the public sector workforce may be too large relative to what is really justified and required.) Even with seemingly flat numbers, an moderate and continuing increase in private sector will yield more tax revenue and increased ripple effect in the local consumer economy - all good things.
This great news and the fact that we continue to chip away at bloated government jobs is the best news of all.
But the numbers are still really high. Its a weird feeling to be cheering about 7.1% unemployment numbers.
I agree with you Shawn. The level of unemployment and underemployment across this country is staggering. Workers that have given up looking for jobs are also not factored into the unemployment rate. It will be especially challenging for those that were laid off from higher wage manufacturing jobs that don't have transferable skills and/or are unwilling to take less skilled positions that often have wages that are more than 50% lower than their previous job. The ever expanding healthcare sector (with proper training) and nuclear power plants may provide somewhat new opportunities. I've always thought Warehouse/Distribution may should have some role in future economic development as Syracuse is a central location within NYS. Unfortunately, as America's population, business facilities, and major industrial clients have shifted to the south and west, the northeast and upper midwest to a less extent have become less attractive for these types of operations.
Rolls, the way I read that article was that the total job gain for Syracuse was 3800. Your quote about Rochester's job gain may be correct, but you left out Manufacturing, tourism, etc. Rochester gained 10,600 new jobs over last year. Rochester's gain as a percentage is second only to Ithica.
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Syracuse Area Job Growth Lead by Private Sector
