George E. Pataki, Governor March 2005

N

Linda Angello, Commissioner

numbers in thousands)

Change in Nonfarm JobsJan. 2004 - Jan. 2005

(Data not seasonally adjusted,

At a Glance

%Net

Continued on page 3

State adds 44,100 private sector jobs in 2004...

Economic RecoveryContinues in New York

In January 2005, New York’s seasonallyadjusted unemployment rate was 5.0 per-cent, down from 5.6 percent in December.(The nation’s unemployment rate was 5.2percent in January.) In January 2005, thestate had 8,481,500 nonfarm jobs, includ-ing 6,996,600 private sector jobs, afterseasonal adjustment. The number of pri-vate sector jobs in the state decreased by0.1 percent from December. (The nation’sprivate sector job count increased 0.1percent over the month.) From January2004 to January 2005, the number ofprivate sector jobs increased by 1.3 percentin the state and increased by 1.9 percent inthe nation (not seasonally adjusted). Inaddition, New York’s employment-popula-tion ratio, a measure of labor force partici-pation rate, increased in January.

ew York State’s private sectorjob count averaged 6,963,300in 2004, up 44,100 or 0.6percent from 2003, after

annual year-end revisions. Like the nation,this was the state’s first year-to-year jobgain since 2000. By comparison, thenation’s private sector job count increasedby 1.3 percent in 2004. Job data arerevised at the end of each year for all statesand the nation, as more comprehensiveinformation, or benchmarks, becomeavailable from employers’ unemploymentinsurance tax records.

Industry Job SummaryEducational and health services added,

by far, the most private sector jobs

(+25,600) of any industry supersectorbetween 2003 and 2004, with gainscentered in health care and socialassistance (+16,900). Leisure andhospitality gained 14,900 jobs, dueto increases in accommodation andfood services (+9,200). Other industrysupersectors adding jobs from 2003 to2004 (in descending order) included:professional and business services; trade,transportation, and utilities; financialactivities; other services; and naturalresources and mining (see table foradditional detail).

Declining industries were led bymanufacturing, which lost 17,400 jobsbetween 2003 and 2004. Manufacturing

Total Nonfarm Jobs 89.4 1.1

Private Sector 86.6 1.3

Goods-Producing -10.9 -1.2

Nat. res. & mining 0.3 6.4

Construction 2.9 1.0

Manufacturing -14.1 -2.4

Durable gds. -3.6 -1.1

Nondurable gds. -10.5 -4.1

Service-providing 100.3 1.4

Trade, trans., & util. 18.4 1.3

Wholesale trade -0.5 -0.1

Retail trade 16.0 1.9

Trans., wrhs., & util. 2.9 1.1

Information 0.2 0.1

Financial activities 7.7 1.1

Prof. & bus. svcs. 16.0 1.6

Educ. & health svcs. 31.6 2.1

Leisure & hospitality 18.6 3.1

Other services 5.0 1.4

Government 2.8 0.2

IN JANUARY......NYS private sector jobs decreased

2005

...NYS unemployment dropped2004 2005

...NYS unemployment rate fell

Seasonally adjusted

2004

Seasonally adjusted

2005

Percent

...NYS labor force participation rose2004 2005

Seasonally adjusted

In 000s

In 000s

Seasonally adjusted

2004

Percent

Number ofPrivate Sector Jobs

TotalUnemployment

UnemploymentRates

USANYS

Employment-Population

Ration

Focus on Southern TierEMPLOYMENT IN NEW YORK STATE

Lockheed to Add 750 New Jobsby Joe Kozlowski, Regional Analyst, Southern Tier

2

continued on page 3

Empire State Defense Contracts Increasing

D

conomic momentum in theregion took a giant leap forwardwith the U.S. Navy’s selection

of Lockheed Martin as the primecontractor to build the next generation ofpresidential helicopters. The companyhas begun construction on a $30 million,176,000 square-foot facility at its Owegoplant (Tioga County) and has started tofill some of the 750 jobs that the projectis expected to generate this year.

Lockheed’s Owego facility will outfitthe airframes with complex electronics,with the first helicopter expected to comeoff the production line in 2008. Hiringwill be concentrated in the professional,technical and managerial f ields.The occupations are expected to pay,on average, over $50,000 per year.According to published reports, this couldgenerate $50 million in payroll and addup to $21 million elsewhere in thecommunity. Due to the specialized,technical nature of the jobs, the companywill recruit nationwide. As a result, theproject will draw many new workers andtheir families to the area.

A February job fair held in Binghamtonby Lockheed Martin drew 2,500 job seek-ers from across the Southern Tier, and asfar away as Connecticut, New Jersey andNorth Carolina. The increase in peopleand wages will ripple throughout theregion’s economy. The federal govern-ment estimates that another 825 jobs will

be added to the local economy as workersspend their incomes on housing, enter-tainment, groceries, home furnishings,transportation and education, which, inturn, will stimulate job growth in othersectors of the regional economy.

The $1.7 billion contract is just thefirst phase of a procurement process thatwill eventually total $6.1 billion forLockheed Martin and its partners. Theregion is slated to reap the economicbenefits of the helicopter contract formany years to come.

Defense Spending

Businesses in the Southern Tier havebenefited from the recent national

expansion in defense spending. (Seerelated article below). Total procure-ment contracts awarded by the U. S.Department of Defense to SouthernTier firms increased from $453.8 mil-lion in 2001 to $695.8 million in 2004,a gain of $242 million or 53 percent. In2004, Southern Tier contractors received13 percent of total awards in New YorkState. On a per capita basis, the South-ern Tier region ($963) received a muchhigher proportion than the state ($273)or the nation as a whole ($699), andranked second only to the Capital region($1,128) among New York State’s tenlabor market regions.

Of the 150 Southern Tier companiesawarded defense contracts in 2004,Lockheed Martin in Tioga County receivedthe largest ($502.7 million), while TylerFire Equipment in Chemung Countyreceived the smallest ($850). Of theSouthern Tier’s nine counties, Tiogareceived the most in defense procurementspending with $507.4 million, or about75 percent of the region’s total, largelyon the strength of Lockheed Martin. Inaddition, Tioga ranked fourth among allcounties in New York in terms of overallprocurement spending. Spending in otherSouthern Tier counties in 2004 was:Broome ($125.6 million), Steuben ($39.4million), Delaware ($11.5 million),Tompkins ($3.9 million), Chenango ($3.3

efense spending is on the rise inNew York State. The EmpireState’s take of federal defense

contracts has increased more than 50percent since 2001. In 2004, more than4,000 New York firms received over $5.2billion in procurement contracts, whichare used by the U.S. Department ofDefense to buy a wide array of goods andservices. This total places the state 12th

in overall ranking across the nation.Total U.S. defense procurement spendingtopped $212 billion in 2004.

Seven defense plants in New Yorkreceived contracts of more than $100million last year. In Schenectady County,Bechtel Plant Machinery received $951.4mill ion and Knolls Atomic PowerLaboratory received $132.9 million.Lockheed Martin received contractstotaling $502.7 million in Tioga County

and $241.5 million in Onondaga County.Northrop Grumman was awarded $406.3in Nassau County. In Orange County,American Auto Logistics won contractstotaling $204.4 million and in MonroeCounty, $173.4 million went to HarrisRF Communications.

Four counties in New York were hometo companies that collectively receiveddefense contracts worth at least $500million in 2004. The counties and thetotal value (in millions of dollars) of theircontracts were: Schenectady ($1,097.9),Nassau ($590.3), Suffolk ($564.6), andTioga ($507.4). They accounted for morethan 50 percent of all procurementspending in the state.

This table shows the per capita valueof procurement contracts for New YorkState’s ten labor market regions in 2004.The Capital and Southern Tier regions

received, by far, the highest per capitalevels of awards.

Per Capita Defense Awards, 2004Region Per CapitaCapital $1,128Southern Tier $963North Country $624Central NY $558Long Island $411Finger Lakes $316New York State $273Hudson Valley $223Western NY $213Mohawk Valley $188New York City $33

The five programs receiving themost funding (in millions of dollars) in2004 were: ships ($1,230.9), electronicsand communications equipment ($962.6),airframes and spares ($767.4), services($735.6), and all other supplies andequipment ($430.3).

Source: U.S. Department of Defense web site.

“The Southern Tier received a hugeboost when Lockheed Martin was

selected to produce the nextgeneration of presidential

helicopters. The project will resultin hundreds of high-paying jobs for

our region for years to come.”

John Flynn, RegionalAdministrator, Southern Tier

E

EMPLOYMENT IN NEW YORK STATE

Economic Recovery... from page 1

Unemployment Rates in New York StateData Not Seasonally Adjusted

3

Employment in New York State

is published 12 times a year. For achange of address, write to the Publica-tions Unit at the address below andprovide your old as well as new address.

Division of Research and StatisticsNew York State Department of LaborBuilding 12, State CampusAlbany, N.Y. 12240

Southern Tier... from page 2

JAN’05

JAN’04

JAN’05

JAN’04

JAN’05

JAN’04

Director David J. TrzaskosEditor Kevin JackDirector of Communications Robert LillpoppGraphic Design Kim HardinEditorial Advisor Christine Perham

million), Otsego ($2.3 million), Chemung($2.2 million), and Schuyler ($186,211). Lockheed Martin’s success in securing amulti-billion dollar defense contract andits ongoing efforts to recruit 750 newemployees underscores the changing na-ture of the American workplace. In par-ticular, it reminds us that globalization andrapid advances in technology have dra-matically changed the skills that work-ers need to get, hold and advance incareers in the 21st century. Once upon atime, it was sufficient for workers to havethe most basic skills—defined as the mini-mum reading, writing, math, and commu-nication skills that individuals needed toget and keep an entry-level job.

However, the ever-changing needs ofthe workplace now demand much higherworker skill levels. According to em-ployer feedback garnered in severalworkforce development surveys, the ba-sics now include advanced math, science,computer and communication skills. Inaddition, decision-making, leadership,teamwork, problem-solving, and goodinterpersonal skills are required.

Added to the mix is learning to learn,which helps workers continuously ac-quire new skills and knowledge that theycan apply at work. Workers must em-brace learning as a life-long process.Those who learn and adapt quickly tonew technologies and changing workprocesses have a significant advantageover less flexible and less-skilled workers.

New York State 6.1 5.2Capital District 5.4 4.6Albany 4.9 4.2Columbia 5.4 4.4Greene 6.2 5.5Rensselaer 5.6 4.8Saratoga 4.9 4.1Schenectady 5.3 4.6Warren 7.0 5.9Washington 6.5 5.6Central New York 6.7 5.7Cayuga 6.8 5.5Cortland 8.0 7.0Onondaga 6.0 5.1Oswego 9.0 7.7Finger Lakes 7.1 5.9Genesee 7.8 6.4Livingston 8.3 6.9Monroe 6.6 5.5Ontario 7.0 6.4Orleans 8.9 7.7Seneca 7.0 6.1Wayne 7.7 6.9Wyoming 9.2 6.9Yates 6.5 5.8

Hudson Valley 5.1 4.3Dutchess 5.1 4.3Orange 5.4 4.6Putnam 4.1 3.7Rockland 4.7 4.0Sullivan 6.8 5.7Ulster 5.8 4.9Westchester 5.0 4.1Mohawk Valley 7.3 6.1Fulton 7.2 6.3Herkimer 7.4 6.7Madison 7.8 6.3Montgomery 8.4 6.9Oneida 6.8 5.6Schoharie 7.7 6.2North Country 8.7 7.3Clinton 7.7 6.3Essex 7.4 6.5Franklin 8.7 7.2Hamilton 8.5 7.4Jefferson 9.5 7.9Lewis 9.5 8.6St. Lawrence 9.0 7.4

Southern Tier 6.8 5.8Broome 6.9 5.9Chemung 7.7 6.6Chenango 7.4 6.2Delaware 5.8 4.9Otsego 6.6 5.5Schuyler 8.4 7.4Steuben 8.7 7.3Tioga 6.7 6.0Tompkins 4.5 3.6Western New York 7.3 6.1Allegany 8.3 6.9Cattaraugus 7.7 6.4Chautauqua 7.4 5.9Erie 7.0 5.9Niagara 8.2 6.5Long Island 5.5 4.7Nassau 5.3 4.5Suffolk 5.7 4.8New York City 8.4 6.2Bronx 10.9 8.0Kings 9.1 6.7New York 7.4 5.5Queens 7.7 5.7Richmond 7.3 5.4

declines were centered in non-durablegoods (-10,000), specifically chemicalmanufacturing (-3,900). The job countalso declined over the year in information;government; and construction.

Area Job Summary

Both Downstate and Upstate areas, aswell as 9 of 14 metropolitan areas,experienced stronger private sector jobperformance in 2004 than in 2003.Improvement in private sector job growthwas especially notable in Buffalo-NiagaraFalls, New York City and Syracuse, all ofwhich rebounded from job declines in2003 to post gains in 2004. In addition,although the private sector job countdeclined slightly in Binghamton and Utica-Rome in 2004, these areas demonstrateda marked improvement from 2003.

Among metropolitan areas, the privatesector annual average job count increasedin nine areas and decreased in fivebetween 2003 and 2004. The privatesector job count increased most rapidly inGlens Falls (+2.7 percent), Ithaca (+1.5percent), Poughkeepsie-Newburgh-Middletown (+1.5 percent), and Putnam-Rockland-Westchester (+1.5 percent).The private sector job count declined inElmira (-2.4 percent), Kingston (-1.4percent), Binghamton (-0.5 percent),Utica-Rome (-0.2 percent) and Rochester(-0.1 percent).

By Kevin Hannel

Change in Annual Average Jobs by IndustryNYS 2003-2004 (in thousands)

Net %

Change Change

Total Nonfarm 39.6 0.5%Private Sector 44.1 0.6%

Natural Resources & Mining 0.4 7.5%Construction -0.7 -0.2%Manufacturing -17.4 -2.8%

Durable Goods -7.5 -2.2%Nondurable Goods -10.0 -3.8%

Trade, Trans. & Utilities 8.7 0.6%Wholesale Trade -1.2 -0.3%Retail Trade 10.3 1.2%Trans., Warehousing & Utilities -0.5 -0.2%

Information -5.6 -2.0%Financial Activities 5.0 0.7%Professional & Business Services 10.8 1.0%Educational & Health Services 25.6 1.7%Leisure & Hospitality 14.9 2.3%Other Services 2.4 0.7%Government -4.5 -0.3%

State of New YorkDepartment of Labor

Division of Research and StatisticsW. Averell Harriman Office Building

CampusAlbany, New York 12240

OFFICIAL BUSINESS

FIRST-CLASS MAILPOSTAGE & FEES PAIDEmployment Security

Permit No. G-12

EMPLOYMENT IN NEW YORK STATE

REGIONAL ANALYSTS’ CORNERhttp://64.106.160.140:8080/lmi/index.html

RS-2

FINGER LAKESWILLIAM RAMAGE585-258-8870

Private sector employ-ment in the Rochesterarea declined 4,700, or1.1 percent, over theyear to 414,800 inJanuary 2005. Jobgains in educational andhealth services (+1,600)were outpaced bydeclines in manu-facturing (-4,900),information (-300), andfinancial activit ies(-300).

NORTH COUNTRYALAN BEIDECK 518-891-6680

Private sector employment in the North Country region increased overthe year by 1,700, or 1.6 percent, to 109,200 in January 2005. Thelargest gains were in trade, transportation and utilities (+1,200) andeducational and health services (+500). Losses were centered inmanufacturing (-400).

SOUTHERN TIERJOSEPH KOZLOWSKI 607-741-4485

Private sector employment in the Southern Tier rose 1,000, or0.4 percent, to 245,100 over the 12-month period ending inJanuary 2005. Job gains in educational and health services(+700), trade, transportation and utilities (+400), and smalleradvances in other industries outpaced losses in information(-300) and smaller losses in several other industries.

MOHAWK VALLEYMARK BARBANO315-793-2282

Private sector employment inUtica-Rome rose 900, or 0.9percent, to 97,500 for the 12-month period ending January2005. Gains were centered ineducational and health services(+700) and manufacturing(+300) with declines in profes-sional and business services(-300) and smaller losses in sev-eral other industries. Govern-ment (+1,200) rose due toexpansion at Oneida IndianNation enterprises andadditional gains inlocal education.

WESTERN NYJOHN SLENKER716-851-2742

Private sector employment in theBuffalo-Niagara Falls area in-creased over the year by 3,400,or 0.8 percent, to 443,000 inJanuary 2005. Job gains werecentered in natural resources, min-ing and construction (+1,000),professional and business services(+1,000) financial activities(+900), educational and healthservices (+800), and leisure andhospitality (+700). Manufactur-ing (-1,000) recorded the largestdecline.

CAPITAL DISTRICTJAMES ROSS

518-462-7600From January 2004 to January 2005, the numberof private sector jobs in the Albany-Schenectady-Troy area increased by 3,700, or 1.1 percent, to329,700, a record high for the month. Job gainerswere led by educational and health services(+1,500), manufacturing (+600), professional andbusiness services (+600), trade, transportation andutilities (+600), and other services (+400).Information (-400) fell over the year.

HUDSON VALLEYSEAN MacDONALD914-997-8798

Private sector employment in the HudsonValley increased 15,500, or 2.2 percent, to726,700 over the 12 months endingJanuary 2005. Gains were centered ineducational and health services (+4,600),professional and business services (+3,200),leisure and hospitality (+2,900), trade,transportation and utilities (+2,500), andfinancial activities (+1,700), while lossesoccurred in information (-1,000) andmanufacturing (-300).

CENTRAL NYROGER EVANS315-479-3388

Private sector employ-ment in the Syracuse areaincreased by 3,300, or1.3 percent, to 256,500over the 12 months end-ing January 2005. Jobcreation was concen-trated in educational andhealth services (+1,200),professional and businessservices (+1,000), lei-sure and hospitality(+900), and trade, trans-portation, and utilities(+900). Manufacturing(-1,000) lost jobs overthe year.

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NEW YORK CITYJAMES BROWN 212-621-9353

The City added 39,200 private sector jobs over the 12-month period endingin January 2005. Jobs were added over the year in educational and healthservices (+13,400) and leisure and hospitality (+10,000), while strength inretailing lifted employment in trade, transportation and utilities (+9,100).Manufacturing (-8,700) was the key area of weakness.

LONG ISLANDGARY HUTH 516-934-8533

Long Island’s private sector job countincreased over the year by 15,300, or 1.5percent, to 1,011,100 in January 2005.Job gains were led by professional andbusiness services (+3,800), educational andhealth services (+3,600), leisure andhospitality (+3,500), trade, transportationand utilities (+2,200), and natural resources,mining and construction (+700).