George E. Pataki, Governor October 2005

T

Linda Angello, Commissioner

numbers in thousands)

Change in Nonfarm JobsAugust 2004 - August 2005

(Data not seasonally adjusted,

At a Glance

%Net

Continued on page 3

Driven by Demographics...

Total Nonfarm Jobs 83.6 1.0

Private Sector 81.4 1.2

Goods-producing -10.6 -1.1

Nat. res. & mining 0.3 4.8

Construction 5.7 1.7

Manufacturing -16.6 -2.8

Durable gds. -6.3 -1.8

Nondurable gds. -10.3 -4.0

Service-providing 94.2 1.3

Trade, trans., & util. 5.3 0.4

Wholesale trade -4.1 -1.2

Retail trade 9.1 1.0

Trans., wrhs., & util. 0.3 0.1

Information -1.4 -0.5

Financial activities 10.1 1.4

Prof. & bus. svcs. 26.9 2.5

Educ. & health svcs. 30.3 2.1

Leisure & hospitality 15.3 2.2

Other services 5.5 1.6

Government 2.2 0.2

IN AUGUST......NYS private sector jobs increased

2005

...NYS unemployment fell

2004 2005

...NYS unemployment rate fell

Seasonally adjusted

2004

Seasonally adjusted

2005

Percent

...NYS labor force participation fell

2004 2005

Seasonally adjusted

In 000s

In 000s

2004

Percent

Number ofPrivate Sector Jobs

TotalUnemployment

UnemploymentRates

USA

NYS

Employment-Population

Ratio

Industry Focus:Death Care Services

Seasonally adjusted

he popularity of the HBOdrama series Six Feet Underand A&E Network’s funeralhome reality series Family

Plots has focused the public’s attentionon an industry group—death careservices—that is often overlooked until apersonal need arises. Death care servicesis the official name assigned by the NorthAmerican Industry Classification System(used to classify and measure economicactivity in North America) to collectivelyrefer to two related industries—FuneralHomes and Funeral Services, andCemeteries and Crematories.

In 2004, New York's death careindustries consisted of more than 1,500

firms with employment of 8,800 and totalwages over $320 million. Despite thesmall size of this industry, it lends supportto families of the more than 150,000 NewYorkers who die each year, by playing acritical role in helping them cope duringan emotionally stressful time.

Demographic DriversOverall industry employment levels have

been flat over the past decade, as moreAmericans are living longer than everbefore. Life expectancy has increasedsteadily in the U. S. over the past century,from 47.3 years in 1900, to 68.2 in 1950,to 77.6 in 2003, according to the Centerfor Disease Control. This result is a direct

In August 2005, New York’s seasonallyadjusted unemployment rate was 4.7percent, down from 5.1 percent in July.(The nation’s unemployment rate was 4.9percent in August.) In August 2005, thestate had 8,534,600 nonfarm jobs, including7,055,000 private sector jobs, afterseasonal adjustment. The number of privatesector jobs in the state increased by 0.1percent from July. (The nation’s privatesector job count also increased by 0.1percent over the month.) From August2004 to August 2005, the number ofprivate sector jobs increased by 1.2 percentin the state and increased by 1.9 percent inthe nation (not seasonally adjusted). Inaddition, New York’s employment-population ratio, a measure of labor forceparticipation, decreased slightly in August.

Focus on Central New YorkEMPLOYMENT IN NEW YORK STATE

Syracuse: A Great Place to Grow a Businessby Karen Knapik-Scalzo, Associate Economist, Central New York

2

continued on page 3

I n July 2005, ExpansionManagement magazine namedthe Syracuse metropolitan

statistical area (MSA), which consists ofOnondaga, Madison, and Oswegocounties, as one of the best places in thenation to expand or relocate a business.The Syracuse area was designated as a“5-Star Business Opportunity Metro,”making it only one of 70 MSAs in thenation to receive this distinction.Syracuse’s ranking was based on a numberof factors, including quality of publicschools, health-care cost and availability,logistics infrastructure, quality of life,number of knowledge indusrty workers,tax and financial management environ-ment, and reputation among corporatesite consultants. The fact that more firmsthan ever are choosing to do business inSyracuse substantiates this ranking.

Service Sector LeadsThe number of businesses in the

Syracuse metro area continue to grow,setting an all-time record in 2004. Astrengthening job market, skilled laborforce, and a relatively low cost of livinghave helped to influence businesses torelocate to and expand in the area.

Private sector employment in theSyracuse area rose 4,900, or 1.9 percent,to 267,400 for the 12-month periodending August 2005. The area’s privatesector job count was at its highest Augustlevel since 2000. The August 2005

unemployment rate was 4.5 percent; itslowest level for the month since 2001.

The area’s job creation is centered inservice-providing sectors. Employment inthe educational and health services(51,300), professional and businessservices (36,200), and leisure andhospitality (28,700) sectors were all atrecord-high levels in August. These threesectors account for more than 40 percentof Syracuse-area private sector jobs.

Many occupations in these three sectorsare expected to experience strong jobgrowth over the next decade. For example,health care job titles such as RN, dentalhygienist, physical therapist, and medicalassistant are projected to be among thefastest-growing in Central New Yorkthrough 2012. In fact, among all area job

titles, registered nurse is expected to addthe most jobs, growing by almost 1,500, ormore than 20 percent, to 8,440 in 2012.

High Tech EmergesAlthough the manufacturing sector has

lagged during the current economicexpansion, over-the-year job losses arebeginning to lessen. In addition,manufacturers in selected high-techindustries including defense and medicaldevices are adding workers. Specific high-tech companies adding jobs includeLockheed Martin (defense) and WelchAllyn (medical devices). Local demandfor engineers is especially acute with jobopportunities expanding in electrical,mechanical, software, radar-systems andenvironmental specialties.

The region’s technology base, espe-cially its broadband infrastructure, is of-ten cited as one of its principal competi-tive advantages. Local organizations,including Verizon, Syracuse University,Summit Software, and the marketingfirm Communigration, hope to take ad-vantage of this by holding a technologyconference, called fuse2005, in Syra-cuse in mid-October. Conference orga-nizers hope to attract new investment inthe area’s high-tech arena by bringingtogether venture capitalists and princi-pals from high-tech, entrepreneurial firms.The conference will showcase major

M

“Companies continue to be drawnto the Syracuse metro area by ourregion’s highly skilled workforce.The New York State Departmentof Labor stands ready to assistbusinesses with their workforceneeds now and in the future.”

Kelli Owens, Regional Administrator,Central/Mohawk Valley Region

ore Americans are living longerthan ever before. The U.S. deathrate dropped 32 percent between

Labor Market Impacts of an Aging Population

1970 and 2002. The aging of the U.S.population, in particular that of the babyboom generation (those born between1946 and 1964), is expected to have anumber of important labor market impactsnow and in the future.

One of the clearest impacts of agingbaby boomers on New York’s labor marketis the strong recent employment growthregistered by the state’s health-care sector.Between 1990 and 2004, private sectorhealth-care employment in the EmpireState grew 33 percent, while overall

private sector jobs increased threepercent. Over this period, health-care'sshare of private sector employmentincreased from 10 percent to 13 percent.

This trend is expected to continue.The leading edge of the baby boomgeneration will turn 65 in 2011. Thenumber of people aged 65 or older isexpected to grow by over 700,000, oralmost 30 percent, between now and2020. As they age, demand for health-care workers is expected to grow at afaster rate than the overall economy. InNew York State, six of the ten projectedfastest-growing occupations between2002 and 2012 are health-care-related.

A related labor market impact involvesthe future demographics of the overallworkforce. Over the next 15 years, NewYork’s working age population (ages 16-64) is expected to grow by 40,000 or 0.2percent. New Yorkers aged 55-64 willaccount for 19 percent of the working-age population in 2020, up from 16percent in 2005. But persons aged 55-64 have a significantly lower labor forceparticipation rate (58 percent) than thoseaged 35-54 (more than 80 percent).Taken together, the above demographictrends suggest the State could face laborshortages, despite growth in the overallworking-age population.

EMPLOYMENT IN NEW YORK STATE

Industry Focus... 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

Central New York... from page 2

AUG’05

AUG’04

AUG’05

AUG’04

AUG’05

AUG’04

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

New York State 5.4 4.6Capital 3.8 3.6Albany 3.8 3.7Columbia 3.9 3.4Greene 4.5 4.4Rensselaer 4.2 3.9Saratoga 3.2 3.1Schenectady 4.1 4.0Warren 3.4 3.5Washington 3.7 3.5Central New York 4.9 4.4Cayuga 4.5 4.0Cortland 5.2 4.4Onondaga 4.7 4.3Oswego 5.8 5.5Finger Lakes 4.7 4.4Genesee 4.4 3.7Livingston 4.7 4.3Monroe 4.9 4.6Ontario 4.0 3.9Orleans 5.7 5.3Seneca 4.4 3.7Wayne 4.6 4.5Wyoming 4.7 4.5Yates 3.7 3.7

Hudson Valley 4.2 3.9Dutchess 3.9 3.7Orange 4.3 3.9Putnam 3.8 3.5Rockland 4.4 4.0Sullivan 4.2 3.8Ulster 4.7 3.9Westchester 4.2 3.9Mohawk Valley 4.6 4.4Fulton 4.8 4.6Herkimer 4.3 4.3Madison 4.8 4.4Montgomery 5.0 4.8Oneida 4.5 4.3Schoharie 4.6 3.8North Country 5.2 4.7Clinton 5.1 4.5Essex 3.9 3.9Franklin 5.1 4.6Hamilton 3.0 2.9Jefferson 5.3 4.6Lewis 5.3 4.8St. Lawrence 5.9 5.3

Southern Tier 4.5 4.2Broome 4.7 4.6Chemung 5.4 4.7Chenango 4.6 4.2Delaware 3.7 3.7Otsego 3.9 3.7Schuyler 4.6 4.7Steuben 5.3 4.8Tioga 4.5 4.1Tompkins 3.4 3.1Western New York 5.2 4.9Allegany 5.5 5.0Cattaraugus 5.2 4.6Chautauqua 4.8 4.2Erie 5.3 5.0Niagara 5.4 5.1Long Island 4.3 4.0Nassau 4.3 3.9Suffolk 4.4 4.1New York City 6.7 5.2Bronx 8.6 6.7Kings 7.4 5.6New York 5.9 4.4Queens 6.0 4.6Richmond 6.5 4.9

technology developments in Central NewYork and highlight the region’s emer-gence as a center for technology.

Syracuse’s newest business incubator,the Syracuse Technology Garden, is fur-ther capitalizing on the growth of technol-ogy-oriented businesses. The incubatorrecruits young start-up companies in tech-nology-related industries, such as telecom-munications, information technology,networking engineering services and bio-technology, encourages them to locatethere and then helps them grow. Oneexample of business assistance available atthe incubator is the NASA-funded SpaceAlliance Technology Outreach Program.This program provides up to 40 hours offree engineering and technical assistancefrom NASA contractors to any U.S.-basedsmall business, inventor or entrepreneur.

SummaryMost of the economic vital signs for

the Syracuse metro area look verypositive. Among the most promising:increased numbers of businesses andjobs; a declining unemployment rate;and, the area’s growing population. Thetotal population in the Syracuse metroarea increased by more than 3,800 to654,000 between April 1, 2000 andJuly 1, 2004. All of these factors, aswell as the resurgence of the area’shigh-tech sector, point to a Syracuse-area economy that is gaining steam, atrend that bodes well for the remainderof 2005 and beyond.

consequence of the nation's falling age-adjusted death rate, which stood at 831.2deaths per 100,000 population in 2003.

Industry analysts anticipate that the overallnumber of deaths will be relatively constantor decrease for at least the next severalyears. The graying of the 78 million memberbaby boom generation, which comprisedalmost 30 percent of the nation’s populationin 2004, will reverse this trend sometimebetween 2010 and 2050.

Occupational ProfileThe three most common occupations

in the industry are (in descending order)groundskeepers, funeral directors, andfuneral attendants. Together, theyaccount for about 60 percent of industryemployment. Typically, funeral directorsare the industry’s most common contactpoint for consumers. Projections preparedby the State Department of Labor expectthe number of funeral directors in NewYork to increase by 9.1 percent, from1,750 in 2002 to 1,910 in 2012. Thelatest wage data indicate that the mediansalary for funeral directors in New York isjust under $55,000 per year.

Funeral directors must hold a license tooperate in New York State. In addition,they must graduate from mortuary school,pass both a national and a stateexamination, and serve a one-yearresidency with a licensed funeral director.Funeral directors also must complete 12hours of continuing education in theirfield every two years.

Typical job duties and responsibilitiesfor funeral directors, according to theNational Funeral Directors Association,include: providing support to thebereaved during initial stages of theirgrief; arranging and directing funeralceremonies; arranging for removal ofthe deceased from the place of death;preparing the body according to thewishes of the survivors and requirementsof the law; securing information forlegal documents; filing death certificatesand other legal papers; assisting survivorswith details for filing claims for deathbenefits; and, helping individuals adaptto changes in their lives following adeath, through post-death counselingand support group activities.

by Kevin Jack

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’ CORNER

http://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 427,200 in Au-gust 2005. Employmentgains in educational andhealth services (+2,100)and professional andbusiness services (+500)were outpaced by de-clines in manufacturing(-3,200), trade, trans-portation and utilities(-1,500), and financialactivities (-1,400).

NORTH COUNTRYALAN BEIDECK 518-891-6680

Private sector employment in the North Country region increased overthe year by 700, or 0.6 percent, to 119,600 in August 2005. Thelargest gains were in educational and health services (+600) andtrade, transportation and utilities (+500). Losses were centered inmanufacturing (-500) and financial activities (-200).

SOUTHERN TIERJOSEPH KOZLOWSKI 607-741-4485

Private sector employment in the Southern Tier region rose500, or 0.2 percent, to 255,200 over the 12-month periodending in August 2005. Job gains in trade, transportation andutilities (+600), educational and health services (+500) andprofessional and business services (+400) outpaced job lossesin manufacturing (-1,300).

MOHAWK VALLEYMARK BARBANO315-793-2282

Private sector employment inthe Utica-Rome metro area fell500, or 0.5 percent, to 101,300for the 12-month period endingAugust 2005. Gains in educa-tional and health services (+500)were more than offset by lossesin manufacturing (-900). Totalgovernment employment in-creased (+800) due to growth atthe Oneida Nation's enter-prises (which are classi-fied as part of localgovernment).

WESTERN NYJOHN SLENKER716-851-2742

From August 2004 to August2005, the number of private sec-tor jobs in the Buffalo-NiagaraFalls metro area increased by2,200, or 0.5 percent, to457,500. Hiring was concen-trated in financial activities (+900),educational and health services(+800), natural resources, min-ing and construction (+800), pro-fessional and business services(+800), and other services (+500).Losses occurred in manufactur-ing (-900) and trade, transporta-tion and utilities (-600).

CAPITAL DISTRICTJAMES ROSS

518-462-7600From August 2004 to August 2005, the number ofprivate sector jobs in the Albany-Schenectady-Troyarea increased by 4,900, or 1.4 percent, to345,200, a record high for the month. Job gainswere centered in educational and health services(+1,400), professional and business services(+1,000), financial activities (+700), and informa-tion (+600).

CENTRAL NYROGER EVANS315-479-3388

Private sector employ-ment in the Syracuse arearose 4,900, or 1.9 per-cent, to 267,400 for the12-month period endingAugust 2005. Job cre-ation was concentratedin professional and busi-ness services (+1,500),educational and healthservices (+1,400), lei-sure and hospitality(+900), and trade, trans-portation and utilities(+800). Syracuse’s pri-vate sector job count wasat its highest August levelsince 2000.

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NEW YORK CITYJAMES BROWN 212-621-9353

Private sector employment in New York City rose 41,500, or 1.4 percent, to3,012,200 for the 12-months ending August 2005. Gains were posted ineducational and health services (+15,300), leisure and hospitality (+10,900),professional and business services (+10,800), financial activities (+6,100), otherservices (+4,600), and natural resources, mining and construction (+1,400). Manufacturing (-5,900) and information (-1,800) declined.

LONG ISLANDGARY HUTH 516-934-8533

Private sector jobs on Long Island increasedover the year by 12,300, or 1.2 percent, to1,060,600 in August 2005. All majorindustry sectors added jobs with the largestgains in professional and business services(+4,100), educational and health services(+3,500), leisure and hospitality (+2,000),trade, transportation and utilities (+1,200),other services (+600) and natural resources,mining and construction (+500).

http://www.labor.state.ny.us/workforceindustrydata/enys_index.shtm

HUDSON VALLEYSEAN MacDONALD

914-997-8798

Private sector employment in the HudsonValley region increased over the year by17,800, or 2.4 percent, to 763,000 inAugust 2005. Employment gains were larg-est in educational and health services(+4,400), professional and business ser-vices (+3,900), trade, transportation andutilities (+2,800), leisure and hospitality(+2,000), and financial activities (+1,900).