The small drop coincided with additional jobs and a larger work force.
Joan Freed, left, of Bethlehem, talks with CSG regional hiring specialist Jill Allen during the Lehigh Valley Job Fair at Allentown Fairgrounds in September. Local unemployment fell to 8.7 percent in October.
The jobless rate fell one- tenth of a point from September unemployment of 8.8 percent, which was the highest all year, according to the state Department of Labor & Industry.
The region added 3,900 seasonally adjusted nonfarm jobs in October, resulting in a total of 345,400. That’s up 1.1 percent from September and up 2.6 percent from one year ago.
The small increase in jobs coincided with an uptick in the labor force.
The Lehigh Valley area added 2,100 people to its work force in October, now totaling 434,300. That's up 0.5 percent from September and up 3.1 percent from year ago levels.
Growing economies typically draw larger work forces as applicants become more confident of finding jobs. However, the pace of the current recovery has been stubbornly slow with unemployment stuck at historically high levels.
Bethlehem-based economist Kamran Afshar said most economic fundamentals point toward improvement next year, assuming Congress resolves the so-called fiscal cliff, a double-whammy of about $560 billion in tax hikes and spending cuts that will take effect beginning Jan. 1 absent intervention.
"Unless we shoot ourselves in the foot, employment will be better in 2013 because all the uncertainty will be out of the way," Afshar said, "2013 is looking like a pretty good year. A lot of good things are in store if the politicians don't destroy it for us."
Even with the October drop in unemployment, the jobless rate remains well above pre-recession levels of about 5 percent. Economists say it will take several years of growth to return to that level.
Many segments that added jobs in October normally perk up this time of year.
Retail added 1,000 jobs in preparation for holidays and local government educational services added 1,100 jobs as institutions approached full employment for the school year. Figures for specific industries are not seasonally adjusted.
Lehigh Valley unemployment lands between the Pennsylvania average of 8.1 percent and New Jersey’s rate of 9.7 percent. The state combines Lehigh, Northampton, Warren and Carbon counties when compiling local data.
The nation, which reported 7.9 percent unemployment in October, releases November figures next week.