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State jobless rate hits more than 25-year high
Journal photo by Walt Unks
line of job-seekers winds through the Employment Security Commission waiting room on Hanes Mill Road.
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Published: January 23, 2009
Updated: 01/23/2009 11:04 am
North Carolina's unemployment rate hit a more than 25-year high in December, climbing to 8.7 percent, the N.C. Employment Security Commission reported today.
The last time that the rate approached that level was 9 percent in June 1983, also when the state was struggling against a sharp recession.
The state's rate rose nearly 1 percentage point from 7.8 percent in November, and up from 7.1 percent in October.
By comparison, the rate was 4.9 percent in January 2008 — just below the 5 percent rate that most economists consider as a sign of full employment.
Some economists have said for months that the state's jobless rate could reach at least 9 percent during 2009. They also have said that North Carolina's economy is increasingly feeling the pressure from the national recession after avoid the pinch for most of 2008.
"It's another sobering month," said Michael Walden, an economics professor at N.C. State University.
"We've now had back to back months of a spike in unemployment in the state. The recession, which started later in North Carolina, is now in full force.
"Today's announcement virtually assures we'll hit 10 percent later this year. The only silver lining I can see — health care jobs continue to increase."
The commission reported that there were major job losses in four job sectors.
Professional and business services dropped 11,400 jobs during December, along with 8,300 in the trade, transportation and utilities, 7,100 in construction and 5,600 in manufacturing.
Also having job losses during the month were government at 2,800 and leisure and hospitality services at 1,500.
In contrast, educational and health services was the only sector to post a significant net gain in jobs at 1,000.
Overall, the state's work force fell by 40,224 workers to nearly 4.2 million.
The number of North Carolinians considered as unemployed rose by 38,558 to 396,846.
The commission reported that for 2008, there was an increase of 185,184 of those state residents considered as unemployed, and a 153,944 decrease in the state's work force.
The commission also reported that the percentage of working age North Carolinians in the labor force hit an historic low of 64.3 percent in December.
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