Local unemployment rate ticks up slightly; labor force continues fall

Yahoo

06-02-2025

The seasonally adjusted unemployment rate for the Scranton/Wilkes-Barre/Hazleton metro area inched up one-tenth of a percentage point in December to 4.1% as the number of people in the local labor force also continues to fall, according to data from the state Department of Labor and Industry.
After remaining at a record low 3.9% for seven months from February through September, the local rate ticked up to 4% in October. The rate held at 4% in November.
The unemployment rate for Lackawanna County increased two-tenths of a percentage point to 4.2% in December — up from 3.8% in December 2023, per state data. Luzerne County's rate rose two-tenths of a percentage point to 4.7% — up from 4.4% in December 2023.
Pennsylvania's unemployment rate increased one-tenth of a percentage point to 3.6% and the national rate dropped one-tenth of a percentage point to 4.1%, per state data.
The local labor force declined by 1,100 from December 2023 to December 2024 and dropped by 1,900 from October to December, the department said.
However, seasonally adjusted total nonfarm jobs in the local metro area increased by 900 in December to a record high 272,500.
Teri Ooms, executive director of The Institute, a regional data analytics and research organization, noted the labor force bears monitoring as spring approaches.
'I think we need to keep an eye on it, but I don't think it requires an immediate panic,' she said. 'There are still job opportunities, so we definitely need the workers. There could be a variety of factors why people pull away from the workforce this time of the year — the holidays and winter months — especially if it's individuals who have difficulty maneuvering. If we don't see them come back in the next few months, as the weather warms up, I would be a little bit more concerned because then we're starting to see a trend. Right now, it could just be an anomaly.'
Ooms added looming tariffs that may be implemented against Mexico and Canada — two of the country's major trade partners — may also impact the area moving forward.
'It's going to be interesting to see what actually unfolds because it's going to create some vulnerability in the job market — within certain industries — if tariffs go into effect,' she said. 'It could be a really ugly situation because our gross domestic product and export market has grown exponentially over the past decade and the United States-Mexico-Canada Agreement is by far the largest export market for northeastern Pennsylvania.'
While Steven Zellers, a state industry and business analyst, also feels the labor force numbers are worth tracking, he maintains the overall job picture remains strong in the region.
'It's pretty broad-based,' he said. 'A lot of the different sectors are up.'
Specifically, the metro area added 2,200 jobs in the health care and social assistance sector from December 2023 to December 2024 and Zellers believes there is potential for even more growth due to the region's demographics.
'It seems like a lot of the bigger health organizations are opening more outpatient care locations,' he said. 'Other than the number of residents employed going down a little bit, everything else is firing on all cylinders.'