The region’s shrinking labor force trimmed the Scranton/Wilkes-Barre metro area unemployment rate by one-tenth of a percentage point in September to 6.7 percent, the lowest rate since October 2008.

Yet, for the 54th consecutive month, Scranton/Wilkes-Barre unemployment ranked the highest among the state’s 14 metro areas, according to data released Tuesday by the state Department of Labor and Industry.

While local joblessness has dropped by more than two points from the 8.8 percent mark in September 2013, 900 fewer people are employed compared to a year ago.

Instead of attributing the declining rate to the emergence of new jobs or more people working, economists say it is largely driven by the area’s shrinking labor force — those working or actively looking for work.

The labor force fell by 600 from August, dropping to 273,500 people.

“The improving rate is not a true win for the region, because the labor force keeps shrinking,” said Teri Ooms, executive director of the Wilkes-Barre-based Institute for Public Policy & Economic Development, a local think tank. “Whether it’s shrinking because people are moving, retiring, or have just given up on a job search, it doesn’t mean we have grown and created these wonderful jobs.”

She said the region has faced systematic issues for decades, citing the lack of job growth. Though new businesses and jobs have emerged in the area, the growth isn’t consistent enough to offset the region’s unemployment, she said.

The state average was 5.7 percent, while U.S. joblessness was 5.9 percent.

Compared to September 2013, retail trade and professional and business services in the area have posted the largest declines, down 1,700 and 2,300 jobs, respectively.

“I think it’s positive to see the unemployment rate drop, but the fact our labor force has decreased raises an eyebrow,” said Dana Harris, Ph.D., professor of economics at Keystone College.

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