Economist urges deeper dive into unemployment statistics

(Harrisburg) — Central Pennsylvania’s major metro areas are growing, but at a slower pace than the rest of the state and country, but oneexpert is also pointing to concerning jobs numbers.

Harrisburg, York and Lancaster need high paying jobs if the growth rate is going to catch up with the state and nation, says PNC Financial Services economist Kurt Rankin.

Meanwhile, the state’s unemployment rate has fallen to 5.7 percent, from 7.5 percent at this time last year.

Yet Rankin, speaking on WITF’s Smart Talk, says the top line number can obscure the fact that thousands have dropped out of the workforce, partly because of a discouraging job market.

“Yes, discouraged workers is certainly only one piece of the puzzle. But it is something that tends to have a outsize impact versus its percentage because discouragement is a sentiment that can be spread to others even if those others do have jobs and brings down consumer spending potential more broadly.”

However, in a surprise phone call into Smart Talk, Pennsylvania Department of Labor and Industry Secretary Julia Hearthway questioned Rankin’s conclusion.

“Some of those are not bad reasons. It may be retirements, people are reaching that retirement age, the baby boomers, and they’re voluntarily leaving work. Some may be that they had added jobs to the family income, part time work during the recession, and they are no longer working.”

Rankin doesn’t deny that, but says more people are working later in life, thus reducing the impact of retirements on size of the labor force.

Hear the full conversation from Smart Talk here.