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Syracuse unemployment rate remains stagnant, lagging behind US job growth

Wasim Ahmad | Staff Photographer

In 2016, Syracuse’s poverty rate was 32.1 percent, according to the U.S. Census Bureau.

As the national economy hits a record low in its unemployment rates, central New York lags behind with only small jumps in employment.

The national unemployment rate dropped from 4.1 to 4 percent between January and June, according to data from the Bureau of Labor Statistics. During that same period, Syracuse’s unemployment wavered between 6.0 and 4.1 percent. June’s rate was 4.4 percent.

Since 2010, the national unemployment rate has steadily decreased. Syracuse follows that pattern, but slower.

For the last two years, the city’s January unemployment rate has been higher than its prior year, according to data from the BLS. After the decline of manufacturing jobs in the city in recent decades, Syracuse-area experts noted areas of both strength and potential improvement in the Rust Belt city.

Donald Dutkowsky, an economics professor at Syracuse University’s Maxwell School of Citizenship and Public Affairs, said many business owners are deterred from moving to the upstate New York region due to high taxes, heavy regulations and workers’ compensation requirements.



The Rust Belt’s decades-long loss of manufacturing jobs to southern states or other countries has also contributed to the job scarcity in Syracuse, Dutkowsky added.

“Syracuse has got to build on its strengths, then try to enact wise policies to help business settle down and thrive here,” he said.

Dutkowsky also said that Syracuse’s high concentration of poverty means many residents lack necessary career skills. In 2016, Syracuse’s poverty rate was 32.1 percent, according to the U.S. Census Bureau.

The city also has a low proportion of college graduates, with only 26.8 percent of residents holding a bachelor’s degree or higher in 2016, per Census data.

Syracuse Councilor At-Large Tim Rudd said that despite such obstacles, there are some aspects of the city that attract business investors.


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“The low cost of living is really desirable,” he said. “If people can live on affordable salaries, then a company can operate for less money. The question is, (does Syracuse) have the skills that our workforce needs to sustain a job?”

After the loss of manufacturing jobs, Syracuse’s economy has instead come to focus on the medical and education fields. CenterState CEO, a Syracuse-based economic development organization, also showed that SUNY Upstate Medical University, St. Joseph’s Hospital Health Center and SU were the top three employers in the city in 2017.  

“The economic growth really should come from a lot (of) different industries. (Syracuse) made the mistake in the past to focus too much in one area, it being manufacturing,” Dutkowsky said. He added that technology-based and military fields are also areas where Syracuse can find attractive job outlets.

Mayor Ben Walsh has said that he plans on using technology to help the city make smarter, data-driven decisions, such as using street poles for traffic and congestion management. He has also pledged to expand Syracuse’s involvement in a major regional drone initiative.

Eric Ennis, an economic development project manager for the city, works with the Syracuse Economic Development Corporation to offer financial assistance for developers to purchase land or buildings and rehabilitate property.

Ennis said current development in the downtown and University Hill neighborhoods could boost the city’s economy. He said the boost in downtown development can be attributed to millennials shifting away from the suburbs and toward inner cities that have restaurants, shops and nightlife.   

“It’s helping companies attract and retain their workforce because there is a really dynamic city center,” Ennis said.

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