Pittsburgh’s unemployment rate dropped in June as the number of people in the workforce and the number of jobs available increased.
The unemployment rate in the region dropped one-tenth of a percentage point over the month to 6.3% in June, according to data released Tuesday from the Pennsylvania Department of Labor and Industry.
The labor force — or the number of people working or looking for work — grew by 1,300 people from May to June.
In the same month, the Pittsburgh area added 5,500 jobs, an increase of 0.5% compared to the month before.
“From everything we’ve heard anecdotally, jobs are out there,” said Lauren Riegel, an industry and business analyst with the department. “Employers are looking to hire. So I think it’s definitely an environment where if people want to go out and look for a job that there are plenty of opportunities available.”
Most industries are still below pre-pandemic job levels, but eight of the 11 business super sectors saw job growth month over month.
The largest increase came from the leisure and hospitality industry, which added 5,300 more jobs in June. The sector has added 29,000 jobs since June 2020 but still has 22,200 fewer jobs than the same month in 2019.
Seasonal job growth is common in the leisure and hospitality industry, Ms. Riegel said. This month’s job growth was higher than the typical summer surge, which usually sees around 3,000 new jobs added.
In the fall, the leisure and hospitality industry tends to shed a few jobs as schools reopen and the cold weather sets in but it’s hard to predict how the economic recovery from the COVID-19 pandemic will impact the normal cycle of job growth and loss, Ms. Riegel said.
The department reported that the “only significant decline” in jobs came from the education and health services sector, which shed 4,900 roles as public schools and universities slimmed down for the summer.
Job losses were only recorded in two other industries: government, which declined by about 100 positions, and mining and logging, which remained even with May 2021 job levels.
Overall, jobs in the Pittsburgh area were up 5.3% from last June, with 56,000 more positions this year than the same time period in 2020. In Pennsylvania, jobs grew 6.1% over the year.
The Pittsburgh region and Pennsylvania have still not returned to pre-pandemic job levels. Pittsburgh reported 68,900 fewer jobs this June than the same month in 2019. Pennsylvania had 363,700 fewer roles.
Compared to the change from April to May, the Pittsburgh region’s unemployment rate and workforce remained relatively unchanged in June.
Last month, the department reported the region’s unemployment rate dropped from 7.5% in April to 6.4% in May. The workforce also dropped by about 12,000 people.
The June numbers don’t reflect a similar drop off in the workforce.
“It did seem like it was due to some people leaving the labor force last month whereas this month that doesn’t seem like the case at all,” Ms. Riegel said. “Unemployment was still down...but this time the employment gain was bigger than that unemployment drop.”
Recent and upcoming changes to state and federal unemployment programs aren’t yet reflected in the jobs data, Ms. Riegel said.
In July, the department reinstated work search requirements for individuals collecting jobless benefits. The requirements, which had been put on hold since spring 2020, specify an individual must prove they have applied to jobs and completed work search related activities each week in order to be eligible for unemployment benefits.
In September, federal programs to extend and expand jobless benefits are also set to expire. Those programs include the supplemental $300 that is tacked on to each weekly check as well as a federal program to provide unemployment compensation to gig workers, independent contractors and others who were not eligible for traditional benefits.
The seven-county Pittsburgh metropolitan statistical area includes Allegheny, Armstrong, Beaver, Butler, Fayette, Washington and Westmoreland counties. The unemployment rate in the region ranged from 5.3% in Butler to 8.4% in Fayette.
In the state, Gettysburg reported the lowest unemployment rate at 4.4% while East Stroudsburg had the highest at 7.4%
Lauren Rosenblatt: lrosenblatt@post-gazette.com, 412-263-1565.
First Published: July 27, 2021, 6:48 p.m.