Long Island lost 3,600 professional, business services jobs in September

Long Island lost more professional and business services jobs last month than in any September since the state Department of Labor started collecting regional job data in 1990, the department said. The record reflects concerns about a recession, but is not necessarily indicative of an emerging pattern, economists said. 

The number of jobs on Long Island grew by 39,000 on an annual basis last month compared to September 2021, with gains in the public and private sectors, according to state Department of Labor data released Thursday. But from August to September, the region lost 9,000 private sector jobs, including 3,600 in the professional and business services sector.

That's a significant decline, economists said. The region loses an average of 600 professional and business services jobs in September, according to Shital Patel, labor market analyst for the state Department of Labor's Hicksville office. Nassau and Suffolk experienced the second largest drop in professional and business services positions for a September in 2001, when the sector lost 2,200 such jobs, Patel said.

"The Federal Reserve’s rate hikes and fears of recession may be causing businesses to rein in their hiring," Patel said in a statement. "If this trend continues it could have a sizable impact on the regional economy, since this sector employs people who work in higher-paying occupations like accounting, engineering, IT, legal services, and consulting."

The dip in professional and business services employment stands out, but Stony Brook University professor and economist John Rizzo cautioned against drawing too many conclusions about it.

"It's really hard to read much into it given that's it's just a one-month trend," Rizzo said.

Islandwide, the total number of jobs hit 1.32 million in September — a 3% increase from September 2021, state Department of Labor data shows. The number of private sector positions rose 2.7% on an annual basis, while the public sector grew 5.2%. The region has recouped many of the jobs lost since COVID-19 hit, but in September, the Island still had 2.8% fewer positions than before the pandemic, the Department of Labor said. 

The private sector generally loses 3,600 jobs in September, but this year's decline was 2.5 times larger, data shows. Weaknesses were concentrated in administrative, professional, scientific and technical services, according to Patel. Still, the number of jobs in the broader professional and business services sector this September — 173,700 — was 2.2% greater than the 169,900 reported in September 2021, according to state Department of Labor data. 

"This is a slowing in the labor market, which is consistent with the Fed's objective. But it's going to take more time than this to get inflation under control," Rizzo said. "Long Island is relatively well positioned to withstand this, but that doesn't help the people who lost their jobs."

The retail and leisure and hospitality industries lost fewer jobs than they typically do when the summer season comes to an end, Patel noted. She said retailers, who shed 400 jobs from August to September, may be trying to hold on to staff through the holiday season since employers are having a harder time hiring.

By Sarina Trangle

sarina.trangle@newsday.comSarinaTrangle

Sarina Trangle covers affordability and cost of living issues and other business topics. She previously worked as an editor and reporter at amNewYork.