CNY Works (above), in Syracuse’s Franklin Square, offers help to out-of-work Central New Yorkers. (Liam Migdail-Smith)
A job is on the Christmas wish-list for a growing number of Americans.
When it comes to unemployment, Central New York is better off than the rest of the state and the country, but not by much. Consider these federal and state numbers on unemployment:
- Nationally, unemployment is now at 10 percent. That’s the highest since June 1983.
- In New York state, unemployment has reached 8.4 percent.
- In Onondaga County, the November unemployment rate was 7.5 percent—or 17,600 people without jobs.
- In November 2009, the unemployment rate in the city of Syracuse was 9.2 percent. That’s 5,900 people looking for work. The last time more than 5,000 people were unemployed in Syracuse was January 1997.
So what caused the increase? A meltdown in almost every part of the economy.
People cut back on spending because of the housing market collapse, says Jerry Evensky, professor of economics at Syracuse University. He said mortgage lenders and customers were in way over their heads with riskyloans.
“They were in a fool’s paradise.” (Jerry Evensky, economics professor at Syracuse University)
People thought they could afford more than they really could. Evensky says consumer spending accounts for about two-thirds of all economic activity. When people stopped spending, businesses no longer had enough income to pay as many employees. That triggered lay-offs.
From October 2008 to October 2009, the Syracuse metro area lost almost 7,000 private-sector jobs, according to the New York State Departmentof Labor. The Syracuse metro area includes Onondaga, Madison and Oswego counties. The most jobs were lost in manufacturing and trade, transportation, and utilities. New Process Gear in DeWitt is one of those casualties. It will close up shop and layoff 125 works in January. Carrier Corporation and General Motors left years ago.
On the good-news side of the economy, Central New York is also seeing some job growth. More jobs in education and health services came to the region in the last year, according to the New York State Department of Labor. And the Syracuse Veterans Affairs Medical Center, Upstate Bone and Joint Center and Welch Allyn Incorporated have announced expansion projects to add more jobs in Central New York.
But unemployment rates do not reflect the actual number of people without a job, said economics professor Evensky of Syracuse University. Some people give up looking for a job. These people are not counted as part of the work force. Only those looking for a job are counted. Evensky says the national unemployment rate could be as high as 17 percent when those not searching for work are also included.
Among the proposed solutions to rising unemployment:
- The federal stimulus package
In spring 2009, President Barack Obama signed the American Recovery and Reinvestment Act, a $787 billion economic stimulus bill. New York will receive $18 billion over the next two years.
Onondaga County is receiving the most federal funding in Central New York — almost $316 million. Of the money coming to Onondaga County, $70.5 million will pay for unemployment benefits, according to Governor David Paterson.
- Extended unemployment benefits
Unemployed New Yorkers will receive an extension on their unemployment benefits. In November, Congress voted to extend federal payments to the unemployed in states where unemployment is higher than 8.5 percent. That includes New York, which was at 9 percent at the time. Under the extension, residents can receive up to 20 more weeks of unemployment benefits. This helps those who would have lost their benefits at the end of the year. New York State offers 26 weeks of benefits, with additional emergency benefits available.
The amount of money someone receives is calculated based on average job salaries. The highest weekly benefit in New York is $405.
- New York’s Shared Works program
To keep workers, New York employers can enroll in the state’s Shared Works program. Rather than firing or laying off employees, businesses can cut the pay of workers and keep them on the job. The workers whose pay is cut can apply for partial unemployment benefits and receive compensation to help cover wages lost.
In Syracuse, CNY Works offers training and help for those looking for work or for better jobs. Latisha Burke is a career advisor at CNY Works. She says she sees a steady number of people coming in to use their services. The rising unemployment has not flooded CNY Works so far.
“I really haven’t seen an influx or decline–it’s been pretty steady. But again we offer our services to the public, not just the unemployed.” (Latisha Burke, career advisor at CNY Works)
SU economics Professor Evensky is optimistic that the economy is getting better. But he warns against thinking the hardest climb is over.
“We’re actually at this point got our hands at the top and we’re pulling ourselves up, but we could still go down.” (Jerry Evensky, economics professor at Syracuse University)
I’m Chris Shepherd reporting for Democracywise.
(Chris Shepherd is a senior majoring in broadcast journalism with a minor in psychology.)
-30-
