Economy, unemployment see growth

The state unemployment rate rose each month this summer, but the numbers don’t reflect North Carolina’s growing economy.

Economists cite two factors to explain a rise in the unemployment rate from 5.1 percent in May to 5.7 percent in July.

First, schools closing for the summer cause a seasonal jump in unemployment, and second, a rising economy encourages more people to actively seek work.

The Employment Security Commission of North Carolina reported employment in the educational services sector of the state government dropped by 13,600 people from May to July.

Because many educational workers have to find another paycheck during the summer, they are factored into the rate of unemployment, resulting in the jump.

While many teachers spread their paychecks into the summer and are not considered unemployed, bus drivers and cafeteria workers don’t have that option, said Martha Bowman, assistant labor market information division director.

Rising unemployment might not reflect a greater number of jobless people, but rather a larger number of job seekers. Only those looking for work are included in the unemployment statistics.

“Overall the picture is more promising,” said Bowman. “The current rise in the (unemployment) rate is something that we’re going to see level off in the fall.”

During the last few months, the number of people employed and the overall labor force in North Carolina both increased. Those looking for work — employed and unemployed ­— constitute the labor force, which reached a record high of 4,339,033 people in July.

The trend isn’t specific to North Carolina, said Doug Pearce, head of the Department of Economics at N.C. State University. Across the nation, more people are looking for jobs, showing increased confidence in the economy.

“The state economy is in a positive trend,” said Michael Walden, professor of agricultural and resource economics at N.C. State. He added that North Carolina is experiencing business expansion, job growth and an influx of people.

But not all industries are benefiting from the evolving economy.

“There are several industries that, despite the overall good numbers, are struggling,” Walden said.

The state textile, tobacco and furniture industries have all had a decline in the number of employers during the past five years.

The economy is abandoning those types of industries, rendering workers’ skills obsolete.

The state considers training workers in skills for up-and-coming industries as important, Bowman said.

“Through all of our economic development we are bringing in new industries, like biotechnology, to put these people to work.”

Contact the State & National Editor at stntdesk@unc.edu.