The Herald, Sharon, PA Published Tuesday, October 7, 2003

County
in midst
of jobless
recovery


A year later, 2,200
fewer are working

§   §   §
By Michael Roknick
Herald Business Editor

While economists say the nation's recession ended nearly two years ago, this recovery isn't adding jobs to local employment rolls.

The latest unemployment figures show there were 2,200 fewer Mercer County residents working in August than one year ago. Of that figure, 1,600 were manufacturing jobs, according to the state Department of Labor and Industry.

Those figures don't include the 470 union workers at Wheatland Tube Co.'s Wheatland plant who ended a five-month strike on Sept. 28.

In what's being called a jobless recovery, this phenomenon is found throughout the state, said Carol A. Patterson, an information specialist for the Labor Department who compiles employment statistics for northwestern Pennsylvania.

"But when you look in individual areas, I would say on this side of the state we've got problems,'' Ms. Patterson said. "The more densely populated areas are faring a little better, but it's still a drag on the state's economy.''

Manufacturing has been hardest hit as factories said a slump in the economy and overseas imports have pummeled sales.

Local manufacturing woes are well known. Over the past year Damascus-Bishop Tube Co. in Reynolds closed, costing 85 jobs. Werner Co. is moving its ladder line out of Sugar Grove Township, which will account for 450 lost jobs. Oxford Automotive in Masury is closing, resulting in 150 positions getting axed, while Wheatland Tube closed the former Sawhill plant in Wheatland which employed 110.

There's talk of upgrading equipment among American factories, but caution lurks in every corner.

"There's a general reluctance on the part of manufacturing to take that initial step,'' Ms. Patterson said. "A lot of companies don't want to commit time and resources and not have something work out.''

A harsh reality of plant closings is those businesses seldom return, she said, which results in the loss of good-paying jobs with benefits. Those displaced workers find they usually have to settle for less.

The county's unemployment rate of 4.7 percent sounds healthy. However, the loss of jobs with fewer people seeking new positions has eroded the economy.

"Fewer people working is money that isn't being pumped into your economy,'' Ms. Patterson said.

William George, president of the Pennsylvania AFL-CIO, visited Mercer County last week and said manufacturing has gotten creamed throughout the state.

"We've lost 127,000 jobs over the last 21 months and all of those jobs paid $12.50 an hour or better with health care and pension,'' he said of state manufacturing jobs. "We lead the nation in Warn reports -- those 60-day notices of (plant) shutdowns. I bleed every week when we get copies of those reports.''

There are 606 job openings listed at Mercer County CareerLink's Sharon office, said Angela Lenzi, office manager. Openings include everything from bartenders to upper-level management positions.

"We have too few jobs,'' Ms. Lenzi lamented. "We've increased our employment base but have a lot of people who are underemployed. We need more positions to meet the demand.''

There's no question jobs have been eroding locally in the manufacturing sector, said Larry Reichard, executive director of Penn-Northwest Development Corp. Meadville and that surrounding area has been hard hit with a decline in the tool and die trade which employs a number of Mercer County residents.

"The tool and die industry is suffering considerably,'' he said.

But in recent months companies have called to say they're looking to expand or build.

"I'm hearing that from my colleagues in other parts of the region,'' Reichard said.

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