Labor Dept.: LI added 8,000 jobs in March

The Long Island economy continues to show signs of growth, according to state Labor Department data released Thursday. The Island had 10,300 more private-sector jobs in March than it did in March 2010, a 1-percent increase.

That gain follows a rise of 11,100 jobs for the February period, a number revised down from the originally reported 12,100. But persistent job losses in the government sector reduced overall employment growth in the latest report to 8,000 jobs.

Though the private sector is driving job gains, the pace remains slow.

"It is disappointing that job growth is not stronger," said Michael Crowell, senior economist in the state Labor Department's Hicksville office.

During the 1990s boom, year-over-year job growth was up at least 19,000, or close to 1.9 percent, he said. And the current uptick continues to be concentrated in low-wage sectors of the economy.

That includes the biggest gainers in the report: educational and health services -- 6,500 jobs; leisure and hospitality -- 3,400; and trade, transportation and utilities, which includes retail -- 2,800 jobs.

"This is a narrowly based job recovery centered in industries that have a high proportion of low-wage jobs," said Pearl Kamer, chief economist for the Long Island Association.

The "food services and drinking places" portion of leisure and hospitality added the most employees of any subsector, 3,400. And some local restaurants reported more business and hiring.

Increased business at the Jolly Fisherman and Steak House in Roslyn prompted owner Steven Scheiner to hire eight workers in the past two months for jobs as waiters, busboys, hostesses and a cook.

"Business is picking up more than it did last year at this time," said Scheiner, who has 47 employees.

At Jackson's Restaurant in Commack, business was up in the first quarter, compared with last year, said owner Shelby Poole, who has hired about eight employees in the past three months, four of them replacements.

"I haven't had one day that I felt was terrible," she said.

By contrast, the Island's higher-paying categories continued to bleed jobs. Construction lost 3,000 jobs, the most of any sector. Manufacturing lost the second-highest in the private sector -- 1,300.

"There is virtually no growth in the high-wage sector of the economy," Kamer said.

The state Labor Department will release the Long Island unemployment rate on Tuesday.

Meanwhile, in the national labor market, initial claims for unemployment benefits rose to 412,000, up 27,000, for the week ended April 9, the most in two weeks, according to Bloomberg News.