Going to work: Figures show 'very solid' job growth, some weaknesses in Hagerstown area

More people have jobs in the Hagerstown area this year compared to 2021, but the region, like the state and the nation, still trails pre-pandemic highs.

On Friday, U.S. Department of Labor’s Bureau of Labor Statistics released state jobs and unemployment data for April.

In a telephone interview after the figures were released, Andy Bauer, vice president and regional executive for the Baltimore branch of the Federal Reserve Bank of Richmond, Va., took a closer look at the numbers.

"Growth has been very solid over the last 12 months," he said of the Hagerstown area.

Overall, the region has seen a 2.2% increase in jobs from April 2021 to April 2022. The number of Maryland jobs grew by 3% during that period.

In examining figures for smaller areas such as the Hagerstown region, Bauer said he prefers to compare year-over-year numbers, such as April 2021 to April 2022. The smaller sample size of a regional report can skew month-to-month comparisons, he said.

'Difficulty in finding workers'

The "goods-producing" sector — which includes manufacturers — has helped lead job growth in the Hagerstown-Martinsburg, W.Va., metropolitan statistical area.

"It's been very strong, close to 4% (growth) on a year-over-year basis," Bauer said.

The trade, transportation and utilities sector, which includes warehousing and trucking operations, also has seen job growth of about 4% on a year-over-year basis, he said.

Bauer has visited the Hagerstown area and said he has some appreciation for the development of warehousing and related operations that is happening here.

But he added that, "oddly enough," job growth in that sector has been relatively flat in the past few months.

He attributed that lull to "just difficulty in finding workers," rather than a lack of job openings.

On the other hand, there are fewer jobs in the education and health services sector.

"That's true nationally, that's true of Maryland and that's true of Hagerstown as well," Bauer said.

Locally, the number of jobs in that sector fell by about 1.9%, he said.

Economists attribute the decline to a number of pandemic-related factors, from more people homeschooling to fewer people choosing to have elective surgeries.

While employment has been growing, it still lags the highs set before the pandemic. And for the past several months, fewer people have been in the labor force, a statistic that includes people who have jobs and those who are actively seeking work.

"A number of people have left the labor force and have yet to come back," he said. A big question for the economy moving forward will be, "Are they going to come back in, and, if so, at what time?"

'Some larger negatives'

According to the preliminary survey data, Maryland’s total jobs decreased by 500 from March to April.

Bauer said he was not concerned by the relatively small drop in the total number of jobs statewide, given the strong trends over the past 12 months. As another positive sign, he pointed to previous reports showing strong consumer spending and retail sales.

Home sales: Interest rate hikes, demand for housing send market into 'uncharted waters,' Realtor says

A matter of taste: Where can you find the world's best pan pizza? In Williamsport.

Great shot: Meritus Health celebrates 100,000th COVID-19 vaccine given since 2020

For the state in April, the professional and business sector saw the most growth with an increase of 2,300 jobs compared to March.

A category called "other services" increased by 1,400 jobs, and manufacturing increased by 800.

The Leisure and Hospitality sector decreased by 3,600 jobs. That sector has been among the hardest-hit by the pandemic.

Some other sectors that experienced declines last month included trade, transportation and utilities (1,800); and mining, logging, and construction (800).

"While there were some positives, there were some larger negatives" that led to the overall decrease, he said.

Mike Lewis covers business, the economy and other issues. Follow Mike on Twitter: @MiLewis.

This article originally appeared on The Herald-Mail: Fed economist notes job growth in Hagerstown area since April 2021