Unemployment climbs

amid economic downturn
By Frank Ruggiero

Unemployment rose in Watauga County last fall, amid an economic downturn in western North Carolina.

According to the Employment Security Commission of North Carolina (ESC), Watauga had the second lowest unemployment rate in the state at 5.1 percent in November, up 1 percent from October 2008 and 1.8 percent from November 2007.

The recently released Western North Carolina Economic Index, produced by AdvantageWest and Appalachian State University’s Center for Economic Research and Policy Analysis, reports that 24 of western North Carolina’s 25 counties experienced a net job loss in November, with Alleghany the only county to see a .45 percent net gain in jobs.

“We’ve been seeing more construction workers filing for unemployment,” said Dawn Boyer, director of the Watauga County ESC. “We’re beginning to see some retail, too, but construction is, by and large, the category we’re seeing an increase in.”

Though western North Carolina has typically weathered the state’s economic storms, Boyer said, “I don’t think there’s any doubt it’s due to the recession.”

This is reflected in the index, which tracks the economic activity of western North Carolina. The index reports November as the region’s third consecutive month of negative economic growth, with economic activity decreasing by .3 percent.

According to Todd Cherry, co-author of the index and director of Appalachian State University’s Center for Economic Research and Policy Analysis, the economy suffered a significant decline near the end of 2008, despite the downturn having started some time ago.

“The dramatic drop in activity translates to fewer jobs and lower incomes, which in turn leads to additional decreases in activity,” Cherry said in a university press release. “It’s a cycle we see in every recession, but this time around the rate of deterioration is dramatic.”

Cherry reports that seasonally adjusted employment for western North Carolina fell 1.42 percent in November. “The employment picture is ugly. The region has lost more 18,000 jobs since June and nearly half of those losses occurred in November,” Cherry said in the release.

According to the ESC, in November 2008, Watauga County had a labor force of 24,216, with 22,972 employed and 1,244 unemployed. The previous month, Watauga’s labor force was at 24,556, with 23,556 employed and 1,000 unemployed.

Though winter is typically a slow month for construction in the High Country, Boyer said the economic climate has thrown consumer conservatism into the wintry mix.

“Manufacturing, retail trade and services sectors have been hit hard during this national and worldwide economic slump,” ESC chairman Harry Payne said in a press release. “Retail trade was down because many employers did not take on more workers during the holiday season as they have in the past. Also, textile and furniture manufacturing continue to struggle in the global economy.”

Orange County had the state’s lowest rate of 4.7 percent in November 2008, up .6 from October. Watauga had the second lowest rate, while Durham, Jackson and Wake shared the third lowest rate of 5.8 percent, up .6, 1.4 and .7 percent, respectively, from the previous month.

Edgecombe County had the state’s highest rate of 13.3 percent, up 1.5 percent from October.

Ashe County had a rate of 8.4 percent, up 1.2 percent from the previous month, while Avery County’s rate of 6.8 percent also reflected an increase of 1.2 percent.

According to the index, Watauga, Avery and Henderson counties saw the smallest increases in unemployment.
For more information, call the Watauga County ESC at (828) 265-5385 or visit www.ncesc.com on the Web. Released monthly, the Western North Carolina Economic Index is available onlin at http://www.business.appstate.edu/economics/cerpa/wncindex.php. It is compiled and written by Cherry and John W. Dawson of ASU’s Department of Economics and Richard Crepeau of the Department of Geography and Planning.