December job data show slowing growth on LI

Wayne Schatzel, of Bethpage, is hoping to find a sales... — Wayne Schatzel, of Bethpage, is hoping to find a sales job. (Dec. 3, 2010) Credit: David Pokress

By CARRIE MASON-DRAFFENcarrie.mason-draffen@newsday.comJanuary 20, 2011

The Long Island economy showed signs of slowing growth in December, according to state Labor Department data released Thursday.

The Island had 8,800 more private-sector jobs in December 2010, compared with December 2009. That followed a revised annualized growth rate of 13,200 for the November period, up from the 10,000 increase first reported.

December's jobs increase was the ninth consecutive month of employment upticks since April, but growth has been uneven and tepid overall. Last year's increases ranged from a low of 700 in May, to the November high. As the economy recovers from the worst downturn since the Great Depression, progress will be uneven, said Pearl Kamer, chief economist for the Long Island Association.

"I think we are going to see strong growth again in the future, but it's going to be on and off," Kamer said.

The Island now has about 1.037 million private-sector jobs, up from 1.028 million in December 2009.

Cuts in the government sector stifled overall job growth. Long Island had 4,500 fewer government jobs in December, the biggest loss of any of the sectors, compared with the year before, mostly because of continued layoffs in school districts. The government cuts took nonfarm employment, which includes the private and public sector, down to 4,300 jobs.

The unemployment rate dipped to 7 percent in December from 7.1 percent in November and remains at recessionary levels. It averaged 7.1 percent for all of 2010.

"This sort of persistent 7-percent unemployment is not particularly good news," said Michael Crowell, Long Island-based senior economist for the department. "On the other hand, our rate is well below New York State's and the nation.

The state has an 8.2 percent jobless rate; the national rate is 9.4. percent. However, the national rate rises to 16.7 percent when it includes the total number of unemployed, plus those forced to work part time because of a shortage of full-time jobs, and those who have given up looking for a job. The latter are called "discouraged workers," and aren't included in ordinary unemployment data.

Educational and health services, the only sector to add jobs consistently throughout the recession, led job growth in the December, expanding by 6,500 positions.

Even some of the losing sectors are showing signs of improvement. For example, one of Long Island's highest-paying categories, professional and business services, lost 400 jobs in the December period, half the number reported for November.

The temporary staffing company Adecco has seen stronger demand for temporary jobs that fall in that category, such as bookkeepers, said Dana Terzian, a direct-placement recruiter for the Melville-based company.

"Those continue to be very hot," she said.