Residential unemployment in the Scranton/Wilkes-Barre metro area increased three-tenths of a percentage point in January to a seasonally-adjusted 9.8 percent, the highest rate of joblessness among the state's metro areas for 33 consecutive months.
That's eight-tenths of a percentage point higher for the region than January 2012, according to data released Tuesday by the state Department of Labor and Industry.
It's not as bad as it looks, experts say.
The increase was due to the growing number of people joining or rejoining the labor force and looking for work. The labor force grew faster than the number jobs available during the year. The number of people working or looking for work grew 10,400 for the trailing 12 months, while the ranks of the employed increases 7,100. The difference - 3,200 - were counted among the unemployed.
The most important factor is that more people are working and more jobs being created.
Dana Harris, Ph.D., professor of business at Keystone College said the number is not as bad as it looks once someone looks at what is driving the rates.
"We added more that 10,000 people to the labor force, nearly 3.7 percent, and we added 7,100 jobs to the economy," she said. "The unemployment rate goes up and it looks bad, but the growing labor force means people feel confident they can find a job and many have."
The seasonally-adjusted rate in Luzerne County was 10.7 percent in January. Lackawanna County was 9.6 percent. Wyoming County was at 11.4 percent. This compares to a statewide average of 8.2 percent unemployment for January and national average of 7.9 percent.
The region's unemployment rate continues to increase relative to other state metro areas. The Scranton/Wilkes-Barre metro is one of just two of the 14 metro area with unemployment rates greater than 9 percent. The other is Johnstown, at 9.3 percent.
"Things look bad at first blush, but we are coming off a comparable good month of December," said Anthony Liuzzo, Ph.D. professor of business at Wilkes University. "The economy is moving steadily in the direction of recovery."
Establishment data, the number of jobs within the metro area, reflected anticipated decreases from December to January with declines in construction activity and education and health service. Year-over-year, however, the situation improved with 2,200 new jobs in the region due to gains of 1,600 in transportation, warehousing and utilities, 1,100 in education services and 700 in professional and business services. Those gains were offset by job declines of 300 in local government, 300 in restaurant, bar and food service, and 300 in financial activities, and 300 in health care and social assistance.
January unemployment numbers usually lag because state analysts are performing statistical benchmarking, said Steven Zellers, of the state Department of Labor & Industry. February local unemployment will be released April 2.
Contact the writer: dfalchek@timesshamrock.com