Oct. 16--The Capital Region's unemployment rate jumped in September, led by a big drop in the number of government jobs.

The regional rate of joblessness climbed to 7.2 percent, up from 7 percent in August and 5.1 percent a year earlier, according to new state Department of Labor statistics.

Most job categories showed declines, as the region lost 15,600 jobs over the past year.

But the decline for state and local government jobs has been particularly steep -- a loss of 5,100 positions.

The drop results, in part, from state and local budget cuts and from the state's refusal to fill some open positions. More than 100,000 people work for state and local government in the Capital Region, making it an especially important economic force.

And it had been considered a usually stable one.

"It's clearly not a stable industry this time around," said James Ross, who monitors Capital Region employment trends for the labor department.

Included in the job losses are 2,500 in local government education. Ross cautioned against reading much into the statistic, because education employment is usually turbulent at the start of the school year.

The state's unemployment news came a day after the Dow Jones industrial index climbed above 10,000 -- a signal to many that the economy is on the upswing. But economists continue to warn it may be awhile before the trend is reflected in job counts.

The labor department report contains some particularly grim local numbers: The unemployment rate in Troy, for example, was 9.8 percent, the highest rate since early 1992. In the city of Schenectady, the rate of joblessness hit 10 percent, a high point not seen since the early 1990s.

The unemployment rate measures the percentage of the population that is jobless and looking for work. The statistic does not include those who have given up on finding work.

There may be a growing number of such people: The Capital Region's overall labor force -- the number of people who are employed or looking -- fell in September to 448,200, from 455,900 a year ago.

That likely means people are either giving up on finding a job or avoiding the workplace, perhaps by enrolling in school.

Ross suspects federal decisions to extend unemployment benefits are keeping some workers from giving up, at least officially. "If you're not looking, you're not eligible for benefits," he said. "That should keep people in the labor market a little longer."

Capital Region unemployment in September remained far below the statewide rate, which was 8.8 percent, up from 8.7 percent in August. The statistic is not seasonally adjusted.

And it was still further below the national rate of 11.8 percent.

Chris Churchill can be reached at 454-5442 or by e-mail at cchurchill@timesunion.com.

Breakdown

Unemployment rates vary significantly by municipality, with urban areas often recording significantly higher levels of joblessness.

Area Sept. 2009 rate Sept. 2008 rate

Albany 8.8% 6.2%

Bethlehem 5.4% 4.2%

Clifton Park 5.9% 4.1%

Colonie 6.4% 4.7%

Saratoga Springs 5.8% 4.7%

Schenectady 10.0 6.7%

Troy 9.8% 6.8%

Source: State Department of Labor

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