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Economist says Valley recovers, but not fast enough
By Kalea Hall
YOUNGSTOWN
The Valley’s first unemployment numbers for the year released Tuesday show what many economists say is a positive trend: continued decrease in unemployment and an increase in employment.
But some say the area still is behind.
“We are recovering, but not fast enough,” said George Zeller, Cleveland-based economist.
The Mahoning Valley’s nonseasonally adjusted jobless rate was 7.3 percent — down from the 8.9 percent rate in January 2014, according to data released by the Ohio Department of Job and Family Services.
Mahoning, Trumbull and Columbiana counties all saw a decline in unemployment from January 2014 to January 2015.
Mahoning’s unemployment rate went from 8.8 percent to 7.1 percent; Trumbull’s went from 9.2 percent to 7.5 percent; and Columbiana’s rate went from 8.5 percent to 7.1 percent.
“I think it is consistent with our economic recovery,” said Mekael Teshome, PNC economist.
The state listed the Mahoning Valley’s December 2014 unemployment rate at 5.6 percent, but because these numbers are not seasonally adjusted, comparing them is “completely meaningless,” Zeller said.
“There are always increases in layoffs in January that are caused by seasonal factors, most notably post-Christmas layoffs with seasonal holiday employees laid off after Christmas, and also normally highly inclement weather during January,” he said.
In January 2014, there also was a jump in unemployment from December. It went from 7.4 percent to 8.9 percent. Although there is a larger jump this time around, we shouldn’t make too much of it, said George Mokrzan, director of economics for Huntington Bank.
Though Teshome expects 2015 to be a better year than 2014, he does expect to see some volatility in the February local unemployment numbers that will be released March 24.
Bert Cene, director of the Mahoning and Columbiana Training Association, which administers both counties’ One-Stop programs, is faced with three different requests for rapid response to help employees prepare to lose their jobs.
Tamarkin, a Giant Eagle subsidiary company in Austintown, is slated for shutdown by May. An estimated 200 people will be out of work from that shutdown.
Corrections Corp. of America, which owns and operates the Northeast Ohio Correctional Center on Hubbard Road, also reached out to the association, Cene said. CCA officials say the goal is to keep as many of its 418 employees as possible.
The Youngstown Developmental Center, which is slated to close in two years, also reached out to the association. The center has a staff of 272 who serve about 85 individuals with developmental disabilities.