The unemployment rate in the Buffalo Niagara region reached a nine-month high of 4% in November, with the rate of workers rejoining the local labor force outpacing the hiring capacity of employers. The state Labor Department’s report indicates that the Buffalo Niagara job market continues to be stable, with suggestions that the labor shortage has started to ease. Despite the 4% unemployment rate and a minor slowdown in economic activity, economists deem the current state of the job market as healthy.

Holiday hiring this year was significantly lower than the previous year, but workers are reportedly earning more, compensating for the loss of jobs. The number of unemployed individuals remains over 20% lower than it was in 2017, even with the recent increase in unemployment. According to Timothy Glass, the Labor Department’s regional economist in Buffalo, the unemployment rate is well below the five-year and 10-year averages, indicative of a strong economy despite not being at an all-time low.

The flat hiring rate across the region since February, coupled report showing job losses in November indicate a cooling local economy following a series of interest rate hikes by the Federal Reserve Board to combat inflation. Wage increases since the pandemic have made staffing more expensive for businesses and simultaneously eased the financial pressure on part-time workers.

Despite ongoing challenges for employers to recruit qualified workers, they are resorting to adaptations such as labor-saving technologies and relying on existing staff to shoulder additional responsibilities. The labor force increased by 3,500 people during November, surpassing the number pre-pandemic. Over the past year, approximately 20,000 workers have rejoined the labor pool, most of whom have found jobs.