Midyear Job Market Review Released
CHAPEL HILL (June 30, 2010) – North Carolina’s job market limped through the first half of 2010. While not shedding jobs at the frantic pace of 2008-09, North Carolina’s job market recorded little progress during the first part of the calendar year. Furthermore, considerable evidence suggests that more difficulties are in store for 2010’s second half.
These findings come from a midyear review of the North Carolina job market released today by South by North Strategies, Ltd., a research firm specializing in economic and social policy. Available on Policy Points, the firm’s blog, the review summarizes major developments to date.
“Although North Carolina netted jobs during the first half of 2010, the growth was insufficient to reverse the serious damage inflicted by the recession,” says John Quinterno, a principal with South by North Strategies, Ltd. “Much of the growth was attributable to temporary developments caused by public policies, but the underlying trends remain concerning.”
The review notes that the second half of 2010 may be a difficult time for the state’s labor market. Many of the policy supports that helped during the first half of the year are unwinding, and it is unclear what will take their place in supporting demand. And the employment and spending reductions that will result from state budget cuts only will compound the difficulties.
The review is particularly concerned about the problem of long-term unemployment.
“If the worsening pattern of long-term unemployment is not reversed soon, many individuals will become effectively unemployable due to the deterioration of their skills, stiff competition, and negative stereotyping on the part of employers,” warns Quinterno. “At that point a serious cyclical employment problem will become an intractable structural one.”
The full review is available at http://www.sbnstrategies.com/?p=3210