Lehigh Valley unemployment rises to 8.1 percent on slow hiring

An increase of 1,400 non-farm jobs was not enough to prevent an increase in jobless rate, according to a state report. Experts expect more hiring in the coming months.

Lehigh Valley area unemployment increased to 8.1 percent in April,  according to a report released Tuesday by the state Department of Labor & Industry, despite an uptick in hiring.

The local jobless rate is up two-tenths of a point from the March clip of 7.9 percent, which had marked the first time in three years local unemployment fell below 8 percent.

Hiring has sputtered throughout the economic recovery, which economists say technically began in 2009, showing briefs spurts but lacking sustained momentum.

“We are zigzagging a little because we still have plant closures and workers being dislocated,” said Nancy Dischinat, executive director of Lehigh Valley Workforce Investment Board Inc.

That could change in the coming months, said Dischinat, whose agency links job searchers with openings. Dischinat said certain industries, such as manufacturing, health care, and warehouse and distribution are growing.

“We are seeing employers hiring. No doubt about it, there is optimism,” Dischinat said. “I know that might sound strange but we’re seeing them take chances whereas before they were buckling.”

Employers that are hiring are doing so in small numbers, Dishchinat said. She cautioned that that many small businesses remain in a holding pattern because they are uncertain about the recovery.

Non-farm jobs are up

The state reports that local non-farm jobs rose by 1,400 on a seasonally adjusted basis, or 0.4 percent, to 342,600 in April. For the past twelve months, such jobs are up 3,800, or 1.1 percent.

Though not typical, it’s possible for jobs and the unemployment rate to both increase at the same time.

That’s because the unemployment rate tracks the employment status of area residents only, while the local jobs total doesn't take into account where those workers live. Jobless rates can also be influenced by changes in the size of the work force.

The state report says the biggest employment increases in April occurred in manufacturing and leisure and hospitality, each adding 1,300 jobs.

The growth in leisure and hospitality was attributed to seasonal hiring. Job totals for specific industries are not seasonally adjusted.

Labor force slowly grows

The local work force rose by 600 last month to 425,100, according to the state. That figure is up 1,400 from April 2011.

An expanding economy normally results in a growing labor force as more individuals gain confidence to seek work.

Department of Labor and Industry analyst Steven Zellers said he expects the recovery to advance in the months ahead, even if progress appears to be unsteady on a monthly basis.

“The general improvement in the economy -- regionally, statewide and nationwide -- we expect that to continue,” Zellers said.

In tracking the labor force, the state only counts those actively looking for jobs. Monthly figures do not include discouraged residents who have given up searching for work.

The current area jobless rate is higher than the statewide average of 7.4 percent. New Jersey reports 9.1 percent unemployment. The state combines Northampton, Lehigh, Warren (N.J.) and Carbon counties when compiling local data.

U.S. unemployment is 8.1 percent. The federal government reports May figures Friday.

Unemployment hovered around 5 percent before the Great Recession. Many economists say it will take several years of growth to return to that level.