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Unemployment rate jumps as state sheds jobs

After three months of holding steady, North Carolina’s unemployment rate increased to 9.9 percent in June, according to figures released Friday morning by the state Employment Security Commission.

Public sector jobs fell by 10,200 last month, including 7,600 in state government. This includes jobs lost in community colleges and universities.

The largest gains were in leisure and hospitality services, which is often seasonal work.

Alexandra Forter Sirota, director of the NC Budget & Tax Center, notes that a direct line can be drawn between this rise in unemployment and the loss of public sector jobs:

“We’re now seeing the short-term impacts of de-funding vital public investments,” Sirota said. “Over the long term, the economic ripple effect from lost investments in education and job creation will become clear as well.”

Then there is this sobering assessment from John Quinterno of South by North Strategies, Ltd.:

“Sadly, nothing in the June jobs report suggests that any improvements are imminent. 2011 is shaping up to be yet another lost year for working North Carolinians.”

Over the course of a year, private sector jobs in North Carolina have increased by 28,900 while government has shed 31,600 jobs.

 

 

5 Comments

  1. francesjenkins

    July 22, 2011 at 8:13 pm

    You know this is not correct. The new state budget did not begin until July so the job cuts could not be in this number. All of your agencies just repeat what the other says. We are in serious trouble, lies are not good at this point. The truth works.

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  3. Jason

    July 23, 2011 at 9:51 am

    The numbers do include some of the layoffs that happened as a result of the budget. State agencies did not wait until July to start laying off employees because they knew the 2011-2012 budget was — at best — going to be a huge cut. In fact, many agencies have been slowly cutting since July, 2010. That is why the June, July, August, and September layoff notices will not be even larger.

    However, the NC unemployment numbers will probably grow larger in the next couple of reports, and the surge in state-government and local-government employment that we have had historically in August and September probably will not happen this year because many teachers and other school staff will not be returning to work in the Fall. As a result, I fully expect job numbers to continue worsening as the year continues.

    If the bloodletting continues (and it may, in light of the legislature making such proposals as merging small community colleges), then we may not see improvement for literally years.

  4. gregflynn

    July 23, 2011 at 10:00 am

    It’s a fact:
    State cuts push up N.C. jobless rate

    The latest data are a sign that the state’s budget cuts are taking a toll. There were 10,200 fewer government jobs in June as the state, local governments, community colleges and universities eliminated positions, the N.C. Employment Security Commission reported Friday.

    Welcome to reality.

  5. James

    July 23, 2011 at 6:41 pm

    Greg, you are wasting your time with all that “reality” stuff. It’s like talking to a brick wall, only without the benefit of shade.