New York State Department of Labor Labor Statistics

Labor Statistics for the Western New York Region Alleghany, Cattaraugus, Chautaugua, Erie and Niagara Counties

 Private sector employment in the Buffalo-Niagara Falls area increased by 5,000 or 1.1 percent to 443,500 over the 12 months ending March 2012. Job gains were centered in educational and health services (+3,600), manufacturing (+2,200), natural resources, mining and construction (+1,300), financial activities (+400), and trade, transportation and utilities (+300). Losses were greatest in professional and business services (-1,900), leisure and hospitality (-800), and information (-200). Government employment increased by (+400) over the year.

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Service-Providing Sector Leads the Way

by John Slenker, Labor Market Analyst, Western New York
(Excerpted from the February 2010 issue of Employment in New York State newsletter)

"The Workforce Investment System in New York offers many services to both job seekers and employers. From giving job seekers resume and placement help to connecting businesses with the right employees, our Workforce partners are ready to help. The key to a successful tomorrow is to prepare today." -- Bruce Herman, Deputy Commissioner for Workforce Development

Creative destruction is a theory made popular by economist Joseph Schumpeter in his 1942 book, Capitalism, Socialism and Democracy. In a nutshell, the theory holds that the key to long-term economic growth is for companies to continually introduce new, innovative products. A downside to this process, however, is that less-competitive firms are often injured -- even sometimes forced out of business -- by these pressures. If you build a better mouse trap, consumers will buy your mousetrap rather than your rival's.

Competition among companies that make operating systems for "smartphones" offers a recent example. Over the past few years, Microsoft has lost market share to rivals: Google's Android, Apple's iPhone and Research In Motion's BlackBerry. Industry analysts cite the new devices and features these companies offer as a main reason why Microsoft's market share is down.

Closer to Home

The recent recession has magnified the effects of "creative destruction" in Western New York. Manufacturing and construction have been among the hardest hit industries locally. During economic downturns, these industries often suffer the most -- as consumers pare back their spending. Car makers have taken it on the chin here. General Motors (GM), which has a large local presence, filed for Chapter 11 bankruptcy protection in June 2009. This occurred despite the infusion of more than $50 billion in federal funds that the company received. The U.S. government now owns 60% of the reorganized GM. In July 2009, the major automakers shut down production and briefly closed plants to reduce inventories and cut costs. Further, the "Big Three" U.S. automakers offered buyouts to their workers during 2009. The latest came from Ford in December. When GM cut production due to slumping new car sales in 2008 and 2009, its parts suppliers had to do the same. These cutbacks hurt Delphi Corp., which has a large radiator plant in Niagara County. The cuts are expected to continue. Cummins Engines, which makes diesel motors in Chautauqua County, already has set layoffs for 2010. This, in turn, affects the industries that transport the materials and parts to local factories. Both railroads and shipping enterprises in the Great Lakes region had layoffs due to the auto slowdown.

Local construction activity was extremely weak in 2009. Big-box retailers Target and Wal-Mart canceled expansions. This cost the area construction jobs. Also, sales of new and existing homes were down over the year in this economically-sensitive industry. Road construction and repair work, which usually shows strong seasonal growth, was almost nil. This was because local and state government budget problems forced them to cancel delay projects.

Good News

The flip side of "creative destruction" is the new jobs created when firms reorganize to focus on their strengths and emerging prospects. The best place to look is where the news has been worst. GM, for example, recently announced it is investing $425 million at it plant in Tonawanda to manufacture a new generation of engines. Now Delphi is again part of GM, with the stability that merger brings. The federal "cash for clunkers" program was key to moving older inventory in the auto market. Public construction projects that had been shelved were restarted with federal stimulus funds. More than $150 million in stimulus money was allocated for a high-speed rail line from Niagara Falls to New York City. Six new windmills are set for the old Bethlehem Steel site in Hamburg. The State may build smaller windmills at six Thruway interchanges in Western New York.

Taking Advantage

Despite the large number of recent layoffs, job openings do exist -- even in a bad recession. Data from the Business Employment Dynamics program show that new and growing firms added more than 1.78 million jobs in New York State in 2008. This was about 93 percent of the yearly jobs added from 2003-2008, when the state's economy was expanding. The key is to find thriving innovative and creative companies, and to match your skills with their needs. Above all: keep looking for work -- opportunities are out there.

Phone: (716) 851-2740
Fax: (716) 851-2607
E-mail: John.Slenker@labor.ny.gov