OCTOBER'S LEHIGH VALLEY UNEMPLOYMENT RATE DROPPED ONE-TENTH OF A POINT TO 8.7 PERCENT.  LABOR ANALYST STEVEN ZELLERS SAYS THAT NUMBER COULD DROP A BIT LOWER IN NOVEMBER AND DECEMBER.  "TYPICALLY YOU DO SEE AN INCREASE IN RETAIL TRADE IN NOVEMBER AND DECEMBER.  IT'S JUST A QUESTION OF WHAT DEGREE THIS YEAR," ZELLERS SAYS.  RETAIL TRADE GAINED 1000 JOBS LAST MONTH, MARKING THE BIGGEST OCTOBER JUMP SINCE 1995.  PENNSYLVANIA'S OCTOBER JOBLESS FIGURE DIPPED ONE-TENTH OF A POINT TO 8.1 PERCENT.


  A PETITION DRIVE TO ALLOW ALLENTOWN VOTERS TO DECIDE IF THEIR CITY SHOULD LEASE ITS WATER AND SEWER SYSTEMS HAS NOW NETTED MORE THAN 4000 SIGNATURES.  ASSUMING MOST OF THOSE SIGNATURES ARE DETERMINED TO BE VALID, THAT'S MORE THAN ENOUGH TO GET THE QUESTION ON NEXT SPRING'S PRIMARY BALLOT.  MAYOR ED PAWLOWSKI WANTS TO LEASE THE WATER AND SEWER OPERATIONS TO HELP BAIL THE CITY OUT OF A BALLOONING PENSION PROBLEM.


  GOVERNOR TOM CORBETT IS PLEASED LEHIGH HEAVY FORGE IN BETHLEHEM WILL BE PARTNERING WITH A NORTH CAROLINA COMPANY TO PRODUCE A POWER SMALL MODULAR REACTOR.  "NUCLEAR IS AMONG THE MOST MISUNDERSTOOD INDUSTRIES," GOVERNOR CORBETT SAYS.  LEHIGH HEAVY FORGE WILL BE RESPONSIBLE FOR 18 COMPONENTS OF THE NUCLEAR TECHNOLOGY.  THE REACTORS ARE ABOUT ONE-FIFTH THE SIZE OF BIG REACTORS AND ABOUT A TENTH OF THE COST.  THEY'RE PORTABLE AND EMISSION-FREE.  LEHIGH HEAVY FORGE SAYS THE NEW PROJECT WILL MEAN ABOUT 100 NEW JOBS OVER THE NEXT 10 YEARS.


  NORTHAMPTON COUNTY D.A. JOHN MORGANELLI SAYS TWO BROTHERS WHO WERE RUSHED TO THE HOSPITAL IN SEPTEMBER INADVERTENTLY TOOK LIQUID LSD FROM A BOTTLE OF BREATH MINT DROPS THEY FOUND ON THE GROUND NEAR THEIR BANGOR HOME.  MORGANELLI SAYS THE 7 AND 10-YEAR-OLD BOYS WERE FOAMING AT THE MOUTH AND HALLUCINATING AFTER ARRIVING AT THE BANGOR ELEMENTARY SCHOOL ON SEPTEMBER 24.  BOTH WERE HOSPITALIZED AND RELEASED THE NEXT DAY.  THE D.A. SAYS THE BOYS' MOTHER AND HER LIVE-IN BOYFRIEND TESTED NEGATIVE FOR DRUGS AND THERE WEREN'T ANY ISSUES FOUND INSIDE THE HOME.  INVESTIGATORS CAN'T GET FINGERPRINTS OFF THE BOTTLE AND IT APPEARS NO CHARGES WILL BE FILED.


  THE LEHIGH VALLEY PHANTOMS ARE HOSTING A CEREMONIAL GROUNDBREAKING AT 3;30 THIS AFTERNOON AT THE SITE OF THEIR UNDER-CONSTRUCTION ARENA AT SEVENTH AND LINDEN STREETS.  SEVERAL HUNDRED SEASON TICKET HOLDERS ARE EXPECTED TO ATTEND AS ARE TEAM OWNERS ROB AND JIM BROOKS, STATE SENATOR PAT BROWNE AND ALLENTOWN MAYOR ED PAWLOWSKI.  THE PHANTOMS ARE SCHEDULED TO BEGIN AMERICAN HOCKEY LEAGUE PLAY IN THE FALL OF 2014.


  CRAYOLA IS CLOSING A LEBANON COUNTY WAREHOUSE.  THE EASTON CRAYON MAKER IS CLOSING ITS 550,000-SQUARE-FOOT DISTRIBUTION CENTER IN BETHEL TOWNSHIP AND THAT MEANS 70 EMPLOYEES THERE WILL BE LOSING THEIR JOBS STARING ON JANUARY 18.  CRAYOLA IS MOVING THOSE OPERATIONS TO THE $40 MILLION, 800-SQUARE-FOOT MAJESTIC BETHLEHEM CENTER ON WHAT USED TO BE BETHLEHEM STEEL PROPERTY.


  PENN STATE SAYS ITS FORMER PRESIDENT HAD TOTAL TAXABLE INCOME OF $3.3 MILLION LAST YEAR, INCLUDING $2.5 MILLION IN SEVERANCE BECAUSE HE WAS FORCED OUT OF THE JOB AFTER JERRY SANDUSKY'S ARREST ON CHILD MOLESTATION CHARGES.  SPANIER'S 2011 SALARY WAS $700,000, PLUS $83,000 IN TAXABLE BENEFITS.  HIS $2.5 MILLION SEVERANCE WILL BE PAID BY 2017.  SPANIER IS CHARGED WITH COVERING UP THE SANDUSKY SCANDAL.  HE'S SCHEDULED FOR A DECEMBER 13 PRELIMINARY HEARING.


  THE PENNSYLVANIA EMERGENCY MANAGEMENT AGENCY SAYS THE STATE'S COSTS FROM HURRICANE SANDY TOP $16 MILLION.  PENNDOT SAYS ITS DAMAGE ESTIMATE IS $6 MILLION, WHILE MONTGOMERY COUNTY SAYS ITS ESTIMATE IS $3 MILLION.  PENNSYLVANIA INSURANCE REGULATORS ARE SURVEYING TOP PROPERTY AND CASUALTY INSURERS AND THE FIRST REPORT IS EXPECTED NEXT WEEK.


  PENNSYLVANIA'S SECRETARY OF EDUCATION SAYS HE WANTS A WAIVER FROM THE NO CHILD LEFT BEHIND LAW.  THE EXEMPTION WOULD FREE THE STATE FROM A FEDERAL MANDATE THAT ALL STUDENTS ACHIEVE PROFICIENCY IN MATH AND READING BY 2014.  SECRETARY RONALD TOMALIS HAD HOPED CONGRESS WOULD REVISE THE LAW, THUS NEGATING THE NEED FOR A WAIVER.  NOW, HE SAYS REVISIONS APPEAR UNLIKELY ANYTIME SOON.


  A MAN CONVICTED OF HARASSING SARAH PALIN'S ALASKA LAWYERS HAS BEEN ARRESTED ON A PROBATION VIOLATION CHARGE.  THE U.S. MARSHALS SERVICE ARRESTED 21-YEAR-OLD SHAWN CHRISTY IN McADOO AFTER A BRIEF FOOT CHASE WEDNESDAY.  HE IS ACCUSED OF WALKING AWAY FROM A COMMUNITY RE-ENTRY PROGRAM IN SCRANTON WITHOUT APPROVAL AND BEING VERBALLY ABUSIVE TOWARD STAFF AND DAMAGING THE FACILITY.  CHRISTY WAS SENTENCED IN JUNE TO FIVE YEARS' PROBATION AFTER HE AND HIS FATHER PLEADED GUILTY TO MAKING HARASSING PHONE CALLS TO PALIN'S ATTORNEYS AND THREATENING BOTH THE ATTORNEYS AND PALIN.


  NEW JERSEY STATE SENATE PRESIDENT STEVE SWEENEY SAYS HE'S READY FOR A SHOWDOWN WITH THE GOVERNOR OVER RAISING THE STATE'S MINIMUM WAGE.  THE SENATE IS VOTING ON A BILL TODAY TO RAISE THE WAGE BY $1.25 PER HOUR, TO $8.50, AND TIE AUTOMATIC YEARLY ADJUSTMENTS TO THE CONSUMER PRICE INDEX.  DEMOCRATS ARE ALSO PURSUING A RESOLUTION PLACING THE QUESTION BEFORE VOTERS NEXT YEAR, IN CASE GOVERNOR CHRIS CHRISTIE VETOES THE BILL.


  CHRIS CHRISTIE'S HANDLING OF HURRICANE SANDY'S AFTERMATH HAS THE NEW JERSEY GOVERNOR RIDING A WAVE OF POPULARITY.  A POLL RELEASED THIS MORNING FINDS 67 PERCENT OF VOTERS NOW HAVE A FAVORABLE IMPRESSION OF CHRISTIE.  THAT'S ONE OF THE HIGHEST APPROVAL RATINGS RECORDED FOR A NEW JERSEY GOVERNOR.