State unemployment rate rises

from The Carolina Mercury, August 19, 2013.

The state’s seasonally adjusted July unemployment rate was 8.9 percent, increasing 0.1 of a percentage point from June’s revised rate. The national rate declined to 7.4 percent from June’s 7.6 percent.?North Carolina’s July 2013 unemployment rate was 0.7 of a percentage point lower than a year ago. The number of people employed decreased 13,735 over the month to 4,278,516, and increased 14,902 over the year. The number of people unemployed increased 1,527 over the month to 417,841, and declined 36,644 over the year.?Seasonally adjusted Total Nonfarm industry employment, as gathered through the monthly establishment survey, increased 8,200 to 4,053,600 in July. The major industry with the largest over-the-month increase was Trade,Transportation & Utilities at 5,200, followed by Leisure & Hospitality Services, 2,700; Financial Activities,?2,400; Professional & Business Services, 1,700; Manufacturing, 1,200; Other Services, 700; Information, 200; and Construction, 100. Major industries to experience decreases were Government, 5,300; and Education & Health Services, 700. Mining & Logging employment remained flat over the month.

Big drops in government employment has countered small gains in the private sector. Also, the changes in NC’s unemployment system are starting to kick in, notes South by North Strategies.

July’s labor market report further is significant because it is the first measure of the state’s labor market to have occurred since the implementation of extensive changes to the state’s system of unemployment insurance compensation. While the number of unemployed persons and the statewide unemployment rate rose from June to July, the number of new initial insurance claims fell by 24.2 percent. Moreover, the number of individuals receiving regular state-funded insurance compensation (new and continuing claims) fell by 10.5 percent from June to July.

“North Carolina’s labor market remains battered and bruised,” observed Quinterno. “While the private sector added jobs in July, that growth was too modest to alter radically the labor market situation. Too many labor market indicators either are under-performing or are moving in the wrong direction. 2013 is well on track to be the worst year for job growth since the onset of the economic recovery.”