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NC Budget and Tax Center

Another new jobs report, the same old story for North Carolina’s metro areas–too many of the state’s urban centers are struggling to create jobs and meaningfully create opportunities for the unemployed. Some of the low-lights from yesterday’s June report on local area unemployment include:

  • 13 out of 14 metros saw their labor forces decline since June 2013, suggesting that too many workers are unable to find work and continue to drop out of the workforce.
  • 8 out of 14 metros saw their unemployment rates drop because the majority of unemployed workers moved out of the labor force rather into jobs. That means that the unemployment rate isn’t going down because things are getting better for workers, but rather because things are getting worse.
  • 3 metros (Fayetteville, Hickory, and Jacksonville) have fewer people going to work in June 2014 than they did last year.
  • Only 4 metros (Durham, Raleigh, Charlotte, and Wilmington) have created enough jobs to fully replace the jobs lost during the Great Recession. After five years, 10 metros have yet to fully recover from the recession.
  • For 10 metros, it will take more than a year to fully replace those lost jobs, if they create jobs at the current pace.
  • One metro, Hickory-Lenoir, will take almost a half century to fully return to pre-recession employment levels if they maintain their current pace of job creation.

All told, this is a dismal jobs reports for our state’s metro areas, far removed from recent claims about the state’s supposed economic renaissance.

NC Budget and Tax Center

An important measure of a positive jobs report is whether progress is being made in creating enough jobs to recover all the jobs that were lost during the Great Recession. By this measure, however, today’s jobs report from the Division of Employment Security reveals that too many of the state’s metro areas are falling behind.

Despite falling unemployment rates, most of North Carolina’s metro areas are not creating jobs fast enough to fill this jobs hole. Five years into the current recovery, ten out of the state’s 14 metro areas have yet to reclaim the jobs lost during the recession, and it will take six of them more than a decade to create enough jobs to return to pre-recession levels at the current rate of employment growth. In one metro—Rocky Mount—it will take almost a century to get back to pre-recession employment levels at the current pace of job creation.

As long as some metros continue to lag behind, the state’s overall economic recovery will continue to struggle, despite a falling unemployment rate.

Follow me below the fold for a summary of each metro’s job creation record over the last year:

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NC Budget and Tax Center

Despite all the claims we keep hearing about the state’s supposedly miraculous economic recovery, too many regions across the state are still waiting for the recovery to happen.  The latest issue of Prosperity Watch digs into unemployment and job creation trends in the state’s metro areas and finds that the decrease in unemployment over the last year is almost entirely due to unprecedented drops in the labor force, not to the jobless moving into employment. See the latest issue for details.