Unemployment Rates Rise in Southern Tier in 2023: Potential Signs of Improvement and What Lies Ahead
In 2023, the Southern Tier economy found stability through new hires in healthcare and government sectors, and an ongoing job recovery in retail and leisure, according to analysts and business leaders in the region. Despite an increase in the size of the workforce contributing to marginally higher unemployment rates, Southern Tier of New York state’s employment remained stable. The state’s seasonally-adjusted unemployment rate in November was 4.3%, slightly above November 2022’s historic low due to economic recovery from the COVID-19 pandemic.
Economists have predicted softer consumer demand in 2024, potentially causing a slight rise in the unemployment rate. However, they believe it is more likely to be a slow down than a recession. November’s county unemployment data shows Southern Tier Region had a rate of 3.6%, Western New York Region had a rate of 4%, and Allegany County had a rate of 3.8%.
During 2023, New York State’s labor force gained by 13,400, and Southern Tier labor force grew by 2.7% or 7,500. The labor expansion, including both those finding and looking for jobs, mitigates the slight increase in the unemployment rate. The region added 600 government jobs, the most of any sector, with Education and Health services next by 400 jobs, and then Leisure & Hospitality with 200. The Southern Tier region had a total of 217,700 private-sector jobs and 272,000 nonfarm jobs in November. At the same time, job openings nationally and regionally cooled down.
Despite this, business leaders maintain that the need for workers remains high in various sectors. Stacey Duncan, the president of the Greater Binghamton Chamber of Commerce and executive director of the Broome County Industrial Development Agency, stated the aim is to skill up and train the next generation of workers across various industries including healthcare, manufacturing, the service industry, and information systems.
Forthcoming job growth is also expected due to various investments in industries such as energy storage, battery technology, and the semiconductor industry. James Johnson, the executive director of the Steuben County Industrial Development Agency, mentioned potential growth in the dairy processing and craft beverage industries, as well as the manufacturing sector, due to expansion plans and completion of projects.