Unemployment and job losses continue to affect North Carolina residents, according to the most recent state Budget and Tax Center report, which found that job growth in the state is proceeding at too slow a pace to accommodate the state's rapidly expanding population.
Unemployment and job losses continue to affect North Carolina residents, according to the most recent state Budget and Tax Center report. The BTC report found that job growth in the state is proceeding at too slow a pace to accommodate the state’s rapidly expanding population, particularly that of unskilled workers.
Despite a recent flurry of positive reports on North Carolina’s economic recovery, job creation numbers in the state have dropped to 2,900 new jobs in August, a significant downturn from the 10,700 new jobs in July. Although the unemployment rate dropped from 5.4 percent in July to 4.9 percent in August, experts say the rate was largely influenced by a reduction of 35,000 people in the state’s labor force.
Recent releases from the Employment Security Commission of North Carolina suggest that the unemployment statistics could be misleading. The ESC indicated that measuring economic success in comparison to pre-2001 recession conditions is inadequate.
In a recent economic brief on unemployment, Elizabeth Jordan, policy analyst for BTC, said “the mere presence of job growth is simply not enough.” She noted that thousands of workers have dropped out of the labor force due to frustration with the job market.
A spokesperson for the ESC Office of Public Information also noted that the decreasing labor force pool resulting from disgruntled and hopeless workers who abandon their job searches is a key to understanding the economic situation in North Carolina.
In addition, the fluctuating labor force and largely random job loss across various industries further suggests that disillusionment with the job market has played a vital role in the recent drop in the unemployment rate, the OPI spokesperson said.
Alan DeLisle, economic development director for the city of Durham, said he recognized the problems surrounding the unstable job environment. He said it is a very frustrating process to try to secure stable jobs for North Carolina residents and dislocated workers.
The BTC report further noted as a cause of worker frustration the dissolution of the Worker Training Trust Fund, which funded many North Carolina employment assistance programs.
Prior to its demise, the funding for the WTTF was supported by unemployment insurance reserves.
Jordan said the high payouts from these funds during the recent economic downturn depleted the Unemployment Insurance Reserve Fund and emptied the WTTF—one more factor that has contributed to North Carolina workers’ disillusionment with the labor force.
Experts recognize, however, that the employment problems in North Carolina will not go away overnight. “It’s not an easy process,” DeLisle said. “I’ll be the first one to admit that.”
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