Harrisburg, January 4 – Unemployment figures released today by the U.S. Department of Labor show an increase in the seasonally adjusted U.S. unemployment rate in December to 5.8 percent, up from 5.6 percent in November.

This is the highest level since April 1995.

Figures released in late December by the U.S. Department of Labor showed that the seasonally adjusted unemployment rate in Pennsylvania was 5.0 percent in November, up from 4.6 percent in September (when state numbers do not show the impact of the September 11 World Trade Center bombing).

Reacting to today’s news about U.S. unemployment, Keystone Research Policy Analyst David Bradley said, "Sixty four thousand more Pennsylvania workers are jobless today because of rising unemployment. But we still have a chance to limit the damage -- despite Washington’s failure to deliver a stimulus package. Pennsylvania legislators must now take the lead in crafting policies that restore economic optimism and are in line with the values of unity and community that have come to the surface since September 11."

While unchanged since October, the November unemployment rate in Pennsylvania was higher than in all of Pennsylvania’s neighboring states except New York.

Our five other neighbors -- Delaware, Maryland, New Jersey, Ohio, and West Virginia – had an average unemployment rate of 4.3 percent. The unemployment rate in Pennsylvania is 0.7 percentage points higher than 12 months ago, 1.0 percentage point higher than its March, 2000 low, and higher than at any point since November 1997.

Within Pennsylvania, the picture is mixed.

• Over the 12 months ending with November 2001, 8 metropolitan areas had unemployment rates at least one-half percentage point higher than November 2000: Allentown-Bethlehem-Easton, Erie, Harrisburg-Lebanon-Carlisle, Lancaster, Reading, State College, Williamsport, and York.

• From August to November 2001, however, the unemployment rate has stayed the same or declined in 8 of the state’s 14 metropolitan areas. Much of Pennsylvania has been spared economic trauma as a result of September 11.

• Three metropolitan areas had lower unemployment rates in November 2001 compared to a year ago: Johnstown, Pittsburgh, and Sharon.

"The resolution that passed the Pennsylvania House unanimously in October of last year called on the U.S. Congress to pass a bill that would expand unemployment benefits, provide health care for the unemployed, and increase job training for displaced workers," concluded Bradley.

"These three consensus elements should be the starting point for state actions aimed at stabilizing our economy and strengthening our families and communities."