05.27.2015 News Releases, Policy Points

North Carolina Labor Market Improves, But Slowly

CHAPEL HILL, NC (May 27, 2015) – In April, employers in North Carolina added 11,100 more jobs than they cut, with net gains occurring in the public and private sectors. Over the year, North Carolina gained 106,600 more jobs than it lost, due entirely to gains in the private sector. Although the statewide unemployment rate rose to 5.5 percent in April, the rate still was almost a full percentage point lower than had been the case a year earlier.

These findings come from new data released today by the Labor and Economic Analysis Division of the NC Department of Commerce.

“So far in 2015, North Carolina has gained 28,400 more payroll jobs than it has lost,” said John Quinterno, a principal with South by North Strategies, Ltd., a research firm specializing in economic and social policy. “For comparison, the corresponding number in 2014 was a gain of 32,000 jobs. Even with the steady payroll gains logged over the last few years, North Carolina has just 63,500 more jobs, or 1.5 percent more jobs, than it did 7.3 years earlier.”

Between March 2015 and April 2015, North Carolina employers added 11,100 more jobs than they cut (+0.3 percent). Private-sector payrolls gained, on net, 7,200 positions (+0.2 percent), and public-sector payrolls added, on net, 3,900 jobs (+0.5 percent), due chiefly to net hiring by local governments. Within private industry, the trade, transportation, and utilities sector added 3,100 payroll jobs (+0.4 percent), with all of the gain occurring in the retail trade subsector. The leisure and hospitality services sector also added 3,100 jobs (+0.7 percent), with 61 percent of the gain originating in the accommodation and food services subsector. Overall, payroll levels rose in six major private industrial sectors, and fell in four sectors.

A revision to the March payroll data found that the state lost fewer jobs than first reported (-1,800 jobs versus an original estimate of -2,600 jobs). With that revision, North Carolina now has, on net, 63,500 more payroll positions (+1.5 percent) than it did in December 2007. Since bottoming out in February 2010, the state’s labor market has netted an average of 6,300 payroll jobs per month, resulting in a cumulative gain of 390,300 positions (+10.2 percent).

Over the year, North Carolina employers added 106,600 more jobs than they cut (+2.6 percent). Private-sector payrolls gained, on net, 108,200 positions (+3.2 percent), while public-sector payrolls lost, on net, 1,600 jobs (-0.2 percent). Within private industry, virtually every major industrial sector netted payroll jobs, with the professional and business services sector gaining the most positions (+23,000 or +4.1 percent, with 60 percent of the gain occurring in the administrative and waste management services subsector).

“The steady payroll growth experienced over the past year remains insufficient to close the job gap that exists in North Carolina, a gap that may be as high as 425,000 jobs,” noted Quinterno. “North Carolina indeed has slightly more jobs than it did when the recession started, but the state’s labor market remains well short of a full recovery.”

According to the monthly household data, the statewide unemployment rate rose in April to 5.5 percent, which still is one of the lowest monthly rates logged since early 2008. Last month’s rise in the unemployment rate was attributable in large part to an increase in the size of the labor force (+33,169 persons, +0.7 percent). Over the month, the number of employed North Carolinians increased by 25,712 persons (+0.6 percent), and the number of unemployed persons rose by 7,457 individuals (+2.9 percent).

Over the past year, the statewide unemployment rate fell by almost a full percentage point, dropping to 5.5 percent from 6.4 percent, with the number of unemployed North Carolinians decreasing by 34,427 persons (-11.7 percent). During that same period, the number of employed persons rose by 143,339 individuals (+3.3 percent), while the size of the labor force increased by 108,912 persons (+2.4 percent). This suggests that the labor market managed to accommodate new members of the labor force and move unemployed persons into jobs.

Other improvements recorded over the course of the year include a rise in the share of working-age North Carolinians participating in the labor market (to 61.1 percent from 60.4 percent) and the share of working-age North Carolinians who are employed (to 57.7 percent from 56.6 percent). Although both of these measures have increased recently, they remain not too far from the lowest monthly rates recorded at any point since January 1976.

Between April 2014 and April 2015, the number of claimants of regular state-funded insurance fell by 16.4 percent, dropping to 18,384 from 21,988. Also in April 2015, the state paid a (nominal) total of $22.4 million in regular state-funded unemployment insurance compensation, an amount 41.8 percent lower than the (nominal) total of $38.5 million paid in April 2014.

“North Carolina’s labor market has improved in many ways over the past year, but those improvements have come slowly,” said Quinterno. “In recent months, North Carolina has managed to add enough jobs to keep pace with the growth in the size of the labor force and to slowly close some of the sizable job gap that was created during the recession. Yet the labor market still is not generating enough jobs, quickly enough to employ all those who want work.”

Print Friendly
Facebooktwittergoogle_plusredditpinterestlinkedinmail

Comments are closed.