While Pennsylvania lost more than 7,000 jobs in October, the state fared better than others in the economic downturn because of a shift from manufacturing to service industries.

Continued job losses pushed Pennsylvania's unemployment rate to 5.8 percent, lower than the national rate of 6.5 percent. The commonwealth's jobless rate has been below the nation's for six consecutive months.

"The nation's economic downturn is affecting the lives of workers across the country and here in Pennsylvania," Gov. Ed Rendell said in a press release Friday.

"The fact that Pennsylvania's unemployment rate remains well below the national rate shows that we are weathering the storm better than many states, but economists are predicting things could get worse before they get better."

Northumberland resident Linda Williard, who will be laid off through March from a local construction company, would agree.

"I don't think it's getting better," she said of the area's economy. "Everybody I talk to knows someone who's been laid off or is getting laid off."

In September, the Keystone State saw a loss of 10,300 jobs and an unemployment rate of 5.7 percent. Over the past year, Pennsylvania's unemployment rate has grown 1.4 percentage points, fewer than the 1.7 percentage points added to the national average.

Much has been done to change the way the government approaches the work force, said Troy Thompson, spokesman for the state Department of Labor and Industry.

"Rather than focusing on just getting people jobs, we (the department) are getting them in high-demand, high-paying jobs," Thompson said.

Pennsylvania is also moving from a goods-producing state to one providing services, Thompson said.

"We want to make sure the opportunities Pennsylvanians have are family-sustaining opportunities to help support families and experience the financial growth that we would like to see in our economy," Thompson said.

Rendell's focus on improving state infrastructure -- like roads, bridges and sewage systems -- is also creating jobs for construction workers, support staff, and materials and equipment suppliers.

"Now is the time to make infrastructure investments that will support tens of millions of jobs," Rendell said.

Thompson also said new work force activity will be spurred by the $400 million clean water bond referendum voters approved on Nov. 4.

"There's no timeline on it, but those types of projects are the types that help our economy get back on track," he said.