Analyst: Low Smithtown Unemployment Tied to Education

Labor market analysts say the Town of Smithtown's relatively low unemployment rate are more due to residents' education and age than the local job market.

Jim Brown, a labor market analyst for the New York State Department of Labor, said that the town's 5.9 percent unemployment in April 2011 is so much lower than the nation's 9.1 percent jobless race because of its demographics.

"The unemployment rates tend to be significantly higher for young people, any towns with a younger population, and it's directly related to educational level. Areas with more college-educated people tend to have a lower unemployment rate," Brown said.

According to the U.S. Census-produced American Community Survey, nearly a quarter of Smithtown residents have a bachelor's degree, with 18.8 percent having graduate or professional degrees.

This percentage is higher when compared its surrounding towns on Long Island, as only 15.3 percent of Brookhaven residents and 14.9 percent of Islip Town residents have bachelor degrees. Respectively, these areas have seen higher unemployment rates during the economic depression with 6.9 percent unemployment in Brookhaven and 7.2 percent unemployment in Islip last month.

Brown said Smithtown residents' higher educational level gives them an advantage within the regional job market, necessary when Suffolk County has 19,000 fewer jobs in April 2010 compared to 2008. 

One factor the unemployment rate doesn't account for are job seekers who are underemployed. Brown said the unemployment rate is based on those residents filing for unemployment benefits, but doesn't include those still looking for full-time work or a position that matches their experience. 

Nikki Barnett,  a career coach and senior career planning & development associate at Stony Brook University's Career Center, said many of her clients are employed. 

"People who have more qualifications have to prepare themselves to get jobs that aren’t at the same criteria. They have the same education, but they are settling for jobs that don’t meet their skill level," Barnett said. 

Barnett said many who are employed reach out to her looking to get a promotion or still searching for a better job. 

There's also evidence to suggest that job seekers are staying off the unemployment roll, lowering the unemployment rate, by accepting temporary work. 

Nancy Schuman, vice president of marketing for Lloyd Staffing in Melville, said the staffing agency is seeing more orders from companies seeking to temporarily hire staff and a surge in those applying for temporary work. 

"Companies are taking people on in a temporary roles in a higher capacity. We are seeing more consulting position over typical secretary roles," Schuman said. 

 She said many unemployed and underemployed job seekers are using temporary positions as a springboard into careers, as companies are often testing out a temporary hire. 

Taking a quick look at various town's educational levels versus their unemployment rate: