Published: July 21, 2008 11:33 pm         

Otsego, Delaware unemployment soar

Chenango, Schoharie also up from 2007

By Jake Palmateer

Staff Writer

More job seekers from single-paycheck families could be one of many factors behind June unemployment rates, the highest here since the early to mid-1990s, according to a state Department of Labor economist.

The number of people looking for work in the four-county area around Oneonta is 31 percent greater than it was a year ago, according to data from the Department of Labor.

In Otsego County, the data indicate 400 more residents were seeking jobs than in June 2007.

The statewide unemployment rate _ the percentage of the labor force actively seeking jobs _ was 5.2 percent last month. The rate rose from 4.9 percent in May and 4.4 percent in June 2007.

Higher costs for fuel and food could be pressuring more people to turn their single-paycheck families into double-paycheck families, said Christian Harris, a senior economist with the Department of Labor.

Slowdowns in the manufacturing and leisure industries also could explain higher unemployment rates, he said.

The unemployment rate for Otsego County was 5.3 percent last month, compared with 4.1 percent a year ago. The rate for Delaware County was 5.8 percent last month, compared with 4.1 percent a year ago. Chenango and Schoharie counties also had a higher unemployment rate last month than during the previous June.

“All the counties throughout the state are pretty much going in the same direction,” Harris said. “We anticipate that to continue until we see a real turn in the nationwide scene.”

It’s the highest June unemployment rate for Otsego County since 1992, when it was 6 percent. For Delaware County, it is the highest June unemployment rate since 1995, when it was 6.1 percent.

In Otsego County, the actual number of employed residents increased from about 31,000 in June 2007 to 31,300 in June 2008, according to Department of Labor data.

Otsego County had 275 job openings in the private sector in June. In Delaware County, there were 139 job openings in the private sector that month, Harris said.

“There are definitely still job opportunities out there,” he said.

Otsego County mirrors the statewide trend of having more people employed but also more people looking for work than a year ago.

However, Delaware County has about 100 fewer employed residents than it did a year ago, according to the data. At the same time, about 400 more Delaware County residents were seeking employment than were a year ago.

Statewide, the manufacturing industry has shed the most jobs, with 17,900 fewer than a year ago.

Larger-than-usual seasonal layoffs by the manufacturing firm MeadWestvaco Corp. could account for the higher unemployment rate in Delaware County, Harris said.

In April, MeadWestvaco said there were 267 laid-off workers when the normal for that time of year is about 150, according to the local union representing workers at the consumer and office products plant in Sidney.

Educational and health services was the sector of the statewide economy that gained the most jobs from June 2007 to June 2008. Across the state, 33,400 jobs were created in these industries, according to the Department of Labor.

“That was a major job-grower over the year,” Harris said.

Otsego County Economic Developer Carolyn Lewis said this could help explain why Otsego County’s unemployment rate fared better than many counties.

Three of the four largest employers in the county are in the health-care or education industries.

“Our employment stays pretty consistent,” Lewis said.

The State University College at Oneonta employees more than 1,100 people and A.O. Fox Memorial Hospital has about 1,000. Bassett Healthcare employs about 2,800 people, although some of these are outside the county.

These large, not-for-profit institutions are somewhat insulated from the trends affecting other parts of the national economy and have a trickle-down effect by supporting other areas of the local economy, Lewis said.

“That’s one of the benefits of our economy,” Lewis said. “We’re seeing job growth.”

Lewis said it may be too early to tell what effect broader economic trends, such as increased fuel costs, are having on the tourism and hospitality industry.

The number of those employed in the leisure industry in Otsego County _ businesses centered on eating, drinking, recreation_- showed a decline from a year ago as consumers watch their spending, Harris said.

“People have a little less money,” Harris said. “Obviously, it’s a tough market right now in general.”

The estimate of the number of unemployed includes all people who had no employment during the reference week of any particular month, were available for work and who had made specific attempts to find employment sometime during a four-week period ending with the reference week. Those collecting unemployment benefits generally make up from 30 to 50 percent of the unemployed, according to the Department of Labor.

An extension of unemployment benefits was announced last week by the Department of Labor.

The federal government is committing $850 million in funding to allow for 13 additional weeks of unemployment benefits to more than 250,000 eligible New Yorkers.

Normally, those who find themselves out of work through no fault of their own can collect up to 26 weeks of unemployment benefits.

There are 22,000 more New Yorkers collecting unemployment benefits than there were a year ago.

People seeking work, June 2007

Delaware: 1,000

Otsego: 1,300

Chenango: 1,100

Schoharie: 800

People seeking work, June 2008

Delaware: 1,400 (+400)

Otsego: 1,700 (+400)

Chenango: 1,400 (+300)

Schoharie: 1,000 (+200)