BINGHAMTON — The Binghamton–area job market is gradually recovering from the great recession, led by growth in “eds and meds.”
“Where we’re seeing our best growth is private education and health,” says Christian Harris, a regional economist with the New York Department of Labor. The Binghamton region, which the Labor Department defines as Broome and Tioga counties, added 700 jobs in those sectors in the last year.
All told, the Binghamton region gained 1,400 non-farm jobs and 2,200 private-sector jobs between February 2011 and February 2012, according to the Labor Department. That 2.7 percent growth in private-sector jobs in the Binghamton area in the last year ranked it third among the state’s metro areas, behind only Glens Falls and Kingston, department data show.
The Binghamton area’s unemployment rate also dropped from 9.6 percent in January to 9.4 percent in February. Though unemployment was up from 9.2 percent in February 2011, this year’s statistic reflects a number of people who had quit looking for work returning to the job hunt and thus being counted as unemployed again, according to Harris.
Called the “shadow work force,” this group dropped off the employment radar for a while as job prospects looked slim, he says. The fact that they are beginning to search for employment again shows that the region’s employment outlook is gaining momentum, Harris contends.
The Binghamton–area labor force totaled 118,800 in February, up from 117,900 in January, but down from 118,900 in February 2011.
Industries that are hiring, such as the health-care sector, are dealing with a combination of an aging, retiring work force coupled with increased demand for services, Harris says. That means organizations in these sectors — hospitals, for example — have an almost constant need for new employees, he says.
Other industries are showing growth as well, he adds. Professional and business services added 400 jobs between February 2011 and February 2012, and even manufacturing is showing some signs of life, Harris says. Smaller “job shops,” in particular, are taking on staff as business picks up, Harris says of the smaller machine shops that have started doing some hiring. In fact, the Binghamton area currently has more than 100 jobs available in production, including production-line and assembly jobs, according to Harris.
The job growth is slow, but becoming steady, and is spread around several industries, Harris says. While the unemployment rate is still higher than what is comfortable, he says, the area is making progress in the right direction.
One sector that isn’t faring as well is government, particularly on the local level, he says. That sector lost 800 jobs in the last year and continues to lose jobs as municipalities try to figure out how to deal with current budget constraints, he says.
Looking ahead, the jobs picture looks like it will continue to improve overall, Harris says. The retail sector is bouncing back, with people starting to spend more, which means retailers will continue to hire. The sector is up 400 jobs from February 2011 to February 2012.
The construction sector, which typically shows its best numbers in the summer months, looks to be heading into an especially strong year, Harris says. “There seem to be a lot of projects in the hopper,” he says. Some local projects include a major highway redesign project where Routes 81 and 17 meet and the upcoming hotel project at Tioga Downs. That means employment levels may be higher than in recent years, he adds. The state Labor Department statistics combine construction with natural resources and mining, and show that the combined sector has added 200 jobs over the last year.
Harris says the Binghamton–area’s unemployment rate will likely continue to remain at a higher than comfortable rate for the next several months as more workers start to re-enter the work force looking for jobs and will be counted among the unemployed if they don’t find them. But the rate should start improving as those people find jobs, Harris says.
Nearby regions haven’t fared as well as Binghamton in job growth in the last year. The Ithaca area lost 4,100 non-farm jobs and 3,500 private-sector jobs from February 2011 to February 2012. The Elmira area lost 1,700 non-farm jobs and 1,200 private-sector jobs between February 2011 and February 2012.