State: LI unemployment dips to 7.8%

Long Island's unemployment rate inched down to 7.8 percent in February from 7.9 in January, according to state data released Tuesday afternoon. The current rate is lower than the 8.3 percent in February 2010, when the local economy was still mired in a recession. But the latest number remains substantially above the pre-recession 4.7 percent in February 2008.

The data turned in other mixed performances. On the upside, companies are hiring more than they are cutting. The Island had 1.339 million employed workers in February, up 2,500 from February 2010.

Improving business for Audio Unlimited in Hicksville prompted its president, Amanda Goldenberg, to hire two field technicians in the past 21/2 months. The company designs, installs and maintains commercial audio, video and theatrical lighting systems. With an influx of new leads, Audio Unlimited plans to hire a salesperson in the next month.

"As far as we can tell, yes, things are definitely loosening up, and the forecasts look pretty positive from where we stand," Goldenberg said.

Still, the latest report shows that the Island isn't generating enough jobs to accommodate its unemployed. The number of jobless people dropped by 8,300 people. Yet, just 2,500 more people became employed. The gap largely reflects "discouraged workers," or people who have given up finding work and aren't included in unemployment data.

"That suggests that not all people who stopped being unemployed found jobs," said Michael Crowell, senior economist in the state Labor Department's Hicksville office.

Excluding discouraged workers is misleading, said Martin Cantor, director of the Long Island Economic and Social Policy Institute at Dowling College in Oakdale. He said the real unemployment number is closer to 8.3 percent.

"That would tell us that Long Island still has very serious problems," he said.

Of the 17 town and local governments tracked by the Labor Department, Rockville Centre had the lowest jobless rate among its residents -- 5.8 percent -- while Hempstead Village had the highest -- 11.2 percent in February, both slightly down from January.

Hempstead Mayor Wayne Hall said a low high-school graduation rate, single-parent households and racial prejudice helped make it difficult for residents, "especially young black males and Hispanics," to land jobs.

"We've had this problem of kids getting into trouble [with the law] and then trying to get a job -- it's almost impossible after you get a record," he said.

Riverhead's February 9.4 percent unemployment was also down slightly from January but remains well above the Island's overall rate.

Town Supervisor Sean Walter said the unemployment rate was "why the redevelopment of EPCAL and downtown Riverhead are so important." He was referring to a new strategy for developing EPCAL, or Enterprise Park at Calverton. "When that happens we're hoping we create a tremendous number of jobs in Riverhead."