The seasonally adjusted unemployment rate for the Scranton/Wilkes-Barre metro area remained at 4.4% over the month in May, but increased two-tenths of a percentage point from May 2024, according to the state Department of Labor & Industry.
The statewide unemployment rate held at 3.9% in May while the national rate remained at 4.2%, state officials said.
The statewide rate rose three-tenths of a percentage point and the national rate increased two-tenths of a percentage point since May 2024, the department announced.
The local metro area reached a record high of 270,700 total nonfarm jobs in May, according to state data. Additionally, the region added 3,100 jobs over the year — a 1.2% increase, according to state data — including 1,900 in the health care and social assistance sector.
Locally, the labor force dropped by 2,800 over the year and the number of employed workers decreased by 3,200, state officials said.
Teri Ooms, executive director of The Institute, a regional data analytics and research organization, isn’t overly worried about those figures unless they continue in that direction for another month.
“There are a lot of things going on right now … obviously the political and economic uncertainty is a factor that could affect hiring and retention,” Ooms said. “The other thing to consider is school started to get out in May and if there is a child care issue, it affects parents’ ability to work. I don’t know if we’re at the point yet where we’re going to see major shrinking of the workforce because of the political and economic environment, I think that remains to be seen over the next couple months but some organizations are not necessarily rushing to replace lost employees — it’s been more of a conservative approach to hiring. I think all those factors combined are affecting the numbers a little bit, but it’s normal to fluctuate.”
Ooms also feels the unemployment rate hovering around 4% to 4.5% has been a positive development.
“I wouldn’t pull the trigger of being concerned just yet,” she said.