Pittsburgh’s October Employment: Best October Ever?
While there are certainly several resources for job growth, according to the U.S. Bureau of Labor Statistics Current Employment Statistics, the Pittsburgh metropolitan statistical area recorded its best October employment on record at 1,161,300. Employment grew 1.2 percent from September 2011 and 1.9 percent from October 2010. (You can read more about it on the website of Pittsburgh TODAY which compares the Pittsburgh region to similar, benchmark cities that include Philadelphia, Cleveland, Denver and Charlotte.)
So what was driving this job growth? One would suspect this to be part of seasonal trends, and while it is true that employment almost always gets a September to October bump around 5,000, this year’s jump was well over 13,000. Trade, transportation, and utilities, and government are two industries that are more significantly impacted by seasonal gains and losses.
Traditional strong-growing industries such as financial activities and professional and business services experienced minimal ups and downs over the past few quarters. Education and health services is a key industry, which has been gradually increasing over the past several months to its current peak of 251,000 employees, a record high.
Often the most interesting data can be found deeper within certain industries. Management of companies and enterprises (a sub-sector of professional and business services) saw its employment rise to 35,900 in October. This is not just the best October for this sub-sector, but the highest employment ever recorded in this industry. This again reinforces several previous analyses by the Pittsburgh Regional Alliance on the importance of Pittsburgh as headquarters hub.
Colleges, universities, and professional schools, a sub-sector of the education and health care industry, saw its employment rise to 45,400, a record high. While some of this can be attributed to increased hiring for the school year, it’s still 10 percent higher than October 2010, and 21 percent higher than this time just five years ago. Pittsburgh’s college and universities are key contributors to this record-breaking October.
Before readers get too excited, remember, the labor force also increased in October, so this will not necessarily translate directly to a major reduction in the regional unemployment rate. According to the Pennsylvania Center for Workforce Information and Analysis, October’s unemployment rate did drop to 7.0 percent, well below the state rate (8.1 percent) and national rate (9.0 percent). The region is moving in the right direction, fueled by a wide range of industries.