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Update: N.C. unemployment rate highest since 1983

Friday, December 19, 2008
(Updated 4:55 pm)

North Carolina's unemployment rate increased to 7.9 percent in November from 7.1 in October, according to statistics released today by the Employment Security Commission of North Carolina.

It is the highest rate since October 1983. The U.S. unemployment rate for November was 6.7 percent.

N.C. State economist Michael Walden said seeing the state's jobless rate climb nearly a full percentage point in November was "virtually unprecedented" and made it likely that unemployment would hit double digits next year.

A peak jobless rate of about 10 percent will be "attention grabbing, but I think we unfortunately will have that in 2009," he said. Walden had forecast last month that North Carolina's unemployment rate would rise to close to 8 percent by the end of 2009.

Seasonally adjusted employment decreased by 58,621 workers to 4,206,363. Unemployment increased by 35,828 workers to 359,319. The number of workers who were unemployed, but actively seeking work is at an all-time high at 359,319.

Since this time last year, unemployment has increased by 145,631 people. The state rate in November 2007 was 4.7 percent.

"It's just hard times," North Carolina Employment Security Commission chairman Harry Payne Jr. said. "I think the way we're structured in terms of our jobs, when things get good, we typically do better than the national average; when things turn, we do worse than the national average."

The volatility is the result of the state's increased employment in service jobs, Payne said. Firms delivering professional and business services shed 25,100 jobs in the past year. Manufacturing jobs fell by about 32,500 and now represent about 14 percent of the state's employment, Payne said.

County-by-county figures for November will be released Jan. 6.


 

Accompanying Photos

File photo (Associated Press)

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