PENNSYLVANIA Official: Unfair trade hurt



Pennsylvania's October unemployment count rose by 10,000.
HARRISBURG -- A Pennsylvania official is calling for federal action to address alleged unfair trade practices that he says are devastating the manufacturing sector.
"The rise in the statewide unemployment rate to 5.5 percent shows the economy continues to struggle," said Labor & amp; Industry Secretary Stephen M. Schmerin, commenting on Pennsylvania's continued unstable employment statistics.
Pennsylvania's seasonally adjusted civilian labor force -- the number of people working or looking for work -- rose by 4,000 (0.1 percent) in October to 6,299,000.
The number of working Pennsylvanians fell by 6,000 from September, while resident unemployment rose by 10,000.
Over the past 12 months, the civilian labor force has increased by 158,000 people (2.6 percent), with employment gains accounting for most of the increase.
"On one hand, it is good news that the Civilian Labor Force increased by 4,000, which means that more Pennsylvanians in October were optimistic about the economy and started looking for work," Schmerin noted. "However, the unemployment count rose by 10,000, which means most of the job seekers could not find work."
Construction segment
October jobs data show that only the construction sector of the economy has grown every month of this year. By contrast, the manufacturing sector has lost jobs 49 out of the past 51 months.
Manufacturers Pennsylvania House and Armstrong World Industries recently announced furniture and flooring plant closings that will lay off more than 850 workers in Lancaster, Northumberland and Union counties.
"Regretfully, the U.S. Commerce Department's action earlier this month to reduce anti-dumping duties on imports of Chinese bedroom furniture is a serious blow to furniture makers like Pennsylvania House," Schmerin said.
"U.S. furniture makers are struggling to compete with foreign imports and were counting on the Commerce Department to adopt duties on the imports that would help to level the playing field," he explained. "Instead, Commerce backed off from its position in June and days after the election announced a range of duties that are far below the industry's initial request."
The layoff announcements at Pennsylvania House and Armstrong are not reflected in the October employment report but are clear indicators of a continuing decline in the state's manufacturing industry, Schmerin noted.
Across the state and the nation, manufacturers are investing in technology improvements that allow them to better compete in the global market, "but in some cases their ultimate success or failure hinges on the willingness of the federal government to address unfair trade tariffs and barriers," he concluded.
Seasonal adjustments
Pennsylvania's seasonally adjusted unemployment rate rose to 5.5 percent in October, up 0.1 of a percentage point from the September rate of 5.4 percent. Pennsylvania's unemployment rate matched the national rate in each of the past two months.
The seasonally adjusted number of nonfarm jobs in Pennsylvania rose by 6,100 (0.1 percent) in October to 5,652,700. The monthly gain was the seventh in the past eight months. Since reaching a 57-month employment low in February 2004, the state has added 76,900 jobs (1.4 percent). Over that same eight-month span, national jobs rose 1.3 percent.
The number of total nonfarm jobs in October was 61,300 above the October 2003 total (1.1 percent). Service-providing industries provided most of the over-the-year growth. Construction remained the lone bright spot among goods-producing industries. Manufacturing, down 15,200, continued to show the biggest net loss since October 2003.