Rendell Says Effects of Weakening National Economy Showing Here as Jobs Decline, Unemployment Rises in August

SAYS STATEWIDE INVESTMENTS, REDUCED GOVERNMENT SPENDING, TRAVEL, HIRING WILL HELP STABILIZE BUDGET, ECONOMY

HARRISBURG – The effects of a weakening national economy made themselves felt in Pennsylvania with a nonfarm job count1 loss of 5,900 jobs and a four-tenths of a percentage point increase in the state’s unemployment rate2 to 5.8 percent in August, Gov. Edward G. Rendell said recently, as he commented on the state’s employment situation.

The Governor pointed to continued investments in Pennsylvania businesses, communities and workers that could help keep the economy positioned for growth in the future. He also noted that, earlier this week, he directed commonwealth agencies to reduce spending, travel and hiring to help keep the state budget on track.

The state’s unemployment rate was below the nation’s in August, which increased to 6.1 percent. Unemployment in Pennsylvania has been at or below the national rate for 66 of the past 68 months.

“Since the beginning of the year, when we began to see the downward trend the national economy was taking, Pennsylvania’s economy has performed well,” Gov. Rendell said. “In the past 12 months, we have lost 3,000 jobs, compared to 283,000 jobs lost nationally.

“We have also fared significantly better than other large industrial states, such as Ohio, Michigan and Minnesota, which lost 19,300, 69,900 and 9,000, respectively, in the past 12 months. Our success is due, in part, to the strategic economic and workforce development investments we have made over the past several years that have put us in a better position to weather this economic storm.”

The Governor said his recent announcement of $3.5 million in Keystone Innovations Grants, which allow Pennsylvania’s colleges and universities and private enterprises collaborate to launch new businesses, is an example of the state’s investment strategy in action.

“These types of investments allow us to create educational and employment opportunities for our citizens – just what Pennsylvania needs to stay afloat in these times of national economic turmoil,” Gov. Rendell said. “At the same time, state government must do its part to ensure that our economy stays healthy, too – one of the main reasons all state agencies will reduce spending, travel and hiring as an effort to maintain the state’s balanced budget.”

Earlier this week, Gov. Rendell directed all commonwealth agencies to reduce spending and eliminate out-of-state travel. He also instructed cabinet members to fill vacancies only in the rarest of occasions. The combined actions will help keep the budget balanced and are expected to save $200 million in the current fiscal year.

“I know these changes will make it harder for our agencies to do the excellent work they do each day for the citizens of Pennsylvania, and they will place an even greater burden on our dedicated commonwealth workforce,” the Governor said, “but I am asking all commonwealth employees to pull together during this difficult time. We are making these adjustments to safeguard the commonwealth’s financial stability in the coming months.

“In the current uncertain economic climate, we must lead by example, and that begins with being especially prudent stewards of Pennsylvania’s resources,” he said.