WASHINGTON: The Lehigh Valley’s unemployment rate crept up in July to 5.4 percent, despite a seasonally unadjusted rise in nonfarm jobs by 1,100, rising to 357,400. The state Department of Labor & Industry said the jobless rate rose 0.2 percent from June and July 2015. Some 23,600 people were out of work, the state reported Tuesday, out of an estimated labor force of 433,700. Bethlehem economist Kamran Afshar said the unemployment-rate spike tells him the labor force keeps expanding. About 200 people joined the ranks of the employed between June and July, to 410,200.
The state said over the month, leisure and hospitality segments saw a seasonal increase in jobs, up 3,900. Public and private educational services saw declines due to the summer break, down by 1,100 jobs, the state said. Sectors seeing record high employment included accommodation, leisure and hospitality and private industries. Though jobs in food and leisure sectors pay lower wages, Afshar said it indicates to him that the demand for eating out is growing, and restaurant owners in particular could be expanding staff.
“I know some people will say these are lower paying jobs, and it’s absolutely true,” Afshar said. “However, it’s an indication that people have more disposable income to spend on dining. July’s rate put the Allentown-Bethlehem-Easton metropolitan statistical area at the 11th lowest of the state’s 18 regions. Rates ranged from 4.1 percent in Gettysburg to 7.1 percent in Johnstown.
Northampton County’s rate stood at 5.2 percent for the month on a seasonally adjusted basis, while Lehigh County’s rate was 5.4 percent. Both figures were 0.2 percent higher than June’s rate. By seasonally adjusted, the government takes into account fluctuations during the year, such as summer job cuts or holiday hirings. The local metropolitan statistical area also includes Carbon County and Warren County, N.J.
