Jobless rate in Mahoning Valley starts to fall

By Don Shilling | September 23, 2009 at 12:00a.m.

But unemployment remains double that of one year ago

By DON SHILLING

VINDICATOR BUSINESS EDITOR

Perhaps the end of the recession really is in sight.

The local unemployment rate, which had reached the highest level in 26 years, came down in August.

“We’re seeing the light at the end of the tunnel. Before, it was pretty dark,” said Bill Turner, administrator of the Trumbull County One-Stop.

National economic numbers are showing the recession is easing, and on Tuesday, the state said the combined jobless rate for Mahoning, Trumbull and Columbiana counties had fallen from 14.9 percent in July to 13.7 percent in August.

Much of the decline can be attributed to the first shift of workers returning to the General Motors complex in Lordstown, Turner said. The complex had been idle for months to whittle down the inventory on car dealers’ lots.

Suppliers to the auto plant also called back workers, he said.

Elsewhere, workers are returning to work slowly.

“We’re still not seeing great gobs of hiring, but smatterings of hiring,” Turner said.

He added, however, that a small part of the dip in unemployment rate could be from people who have exhausted their benefits and have dropped off the list of those searching for work.

For the local jobless number to keep dropping, the area needs manufacturers to begin ramping up production, said Jessica Borza, chief operating officer of the Mahoning Columbiana Training Association. Manufacturers are starting to consider recalling workers so they can do that, she said.

“We are seeing some glimmers of hope here and there,” she said.

In another sign of positive news, the number of people filing initial claims for unemployment has fallen significantly from six months ago.

In Mahoning County, new claims totaled 333 during the week of Sept. 12, down from 1,033 during the week of March 14. In Columbiana County, initial claims totaled 183 during the week of Sept. 12, down form 253 during the week of March 14.

Despite the improving numbers, Borza and Turner said the area still has a long way to go to be healthy economically.

Last month’s jobless rate remains almost double the 7.5 percent rate that was recorded in August 2008. The rate has been in double-digits since January.

The three local counties still had 37,600 people who were unemployed last month.

These people are keeping the One-Stop employment and training centers busy.

Visits to the centers in Mahoning and Trumbull counties increased slightly last month even though the jobless rate fell. The centers list job openings, provide coaching on finding a job and have grant funds for training or education.

Borza said people often become more interested in retraining after they have been off the job for a while.

shilling@vindy.com