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NC unemployment rate climbs to 9.9 percent - highest this year

Posted July 22, 2011

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— Layoffs in state and local governments have driven North Carolina’s unemployment rate to the highest level in nearly a year.

Some 10,200 jobs were cut from the public sector, including 7,200 in state government, leading to a statewide jobless rate of 9.9 percent in June, the North Carolina Employment Security Commission reported Friday.

That’s the worst since October 2010, when unemployment dipped under double digits for the first time in several months.

The drop in government jobs was not necessarily linked to the recently passed state budget, which took effect July 1, said Larry Parker, spokesman for the ESC.

“It’s too early to tell” if state agencies and other governments were cutting jobs ahead of expected budget cuts, Parker said. He noted that government jobs, especially at community colleges and universities, jump in summer months when teaching and other staff jobs are cut until the fall term.

“There was a larger increase that we typically see this time of year in that portion of state government,” Parker said of the university and community college job category. Asked whether the cuts are budget related and will be longer term, he said “It’s too early to tell.”

North Carolina’s jobless rate had been stable at 9.7 percent for the last three months. A year ago, unemployment was 10.5 percent.

The national jobless rate is 9.2 percent.

Seasonally adjusted employment, which economists consider the most accurate barometer of the jobs picture, declined by 9,500 to 3.87 million.

The loss of government jobs more than offset an increase of 4,400 in leisure and hospitality jobs.

The number of people unemployed seeking work or receiving jobless benefits surged by 9,516 to 446,377, the ESC said.

Private sector jobs have increased 24,100 so far this year and are up 28,900 from June 2010.

Government jobs have declined by 31,600 in the past year. That 4.4 percent decline is by far the largest in jobs categories as tracked by the ESC. The largest losses in the private sector have taken place in construction at 6,800.

Biggest private sector job sector increases over the past year have taken place in professional and business services (12,000) and leisure and hospitality services (8,900).

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  • RB aka Spirit Warrior Woman Jul 22, 2011

    CA - "People are quietly scraping their Obama stickers off their rear windows"

    And some, I daresay, not so quietly.

    ROFLOL

    Glad I didn't vote for him.

  • RB aka Spirit Warrior Woman Jul 22, 2011

    jeannerogers - "Bush had already got us in a big jam with 2 wars. The deficit had already sky-rocketed. Was stimulus money the best way? Who knows? You don't always know how those type of things will work. If memory serves me, Bush put out the first stimulus plan. Don't hear anyone reminding folks of that. It's because they only want to banish Obama."

    Our whole economy was seriously undermined when Clinton promised, during campaigning, that every US worker should be able to buy a home.

    Then when he got elected, he leaned on FNMA and FMAC to lower their loan qualifying standards. Then people who had could ill afford to buy a home but got an approved mortgage and who had no vested interest in the home because of the lowered qualifying standards bailed, that's what led them to falter and fail.

    And Bush did nothing to reverse all that when he took office.

    This country, the world actually, is a mess, and it's our fault for re-electing crooks and liars.

  • RB aka Spirit Warrior Woman Jul 22, 2011

    miseem - " Public sector lay offs are just beginning and many that in years past were seasonal in the past will be permanent. Unemployment payments will be going up, retail will be hurt, more homes foreclosed. Hope that extra $20 savings a year per person in sales tax makes the economy boom."

    It started in the fall of 2007. Many of those layoffs have long since become fully permanent. The benefits of those on unemployment from that time have run out; they've faced foreclosure, lost their home, lost their car, and are now on welfare.

    How's that save money for the government, i.e. US - the US taxpayer.

  • RB aka Spirit Warrior Woman Jul 22, 2011

    jeannerogers -

    "Are you kidding me? I promised to get my college student a car, but when the time came, I could not do it financially. Am I do get a car anyway because I promised? Are you kidding me?"

    Then you explained it to him and apologized right? (If not, that's just sorry.) And that's what we're waiting for from Obama - to either CREATE NEW JOBS like he PROMISED, or to publicly admit he made a mistake in PROMISING to do so while campaigning.

    "What are you going to do to help create jobs? It's time for each American to ask what they are going to do to help the economy recover? We are all in this together."

    I'm going to vote for someone else, someone who can keep their word. That's really all any of us out here in USA-land can do.

    IGNORE PARTY LINES AND DON'T RE-ELECT ANYONE!!!

  • s23nemo Jul 22, 2011

    @dsalter
    "...GM is now solvent."

    Nice try, but the government gave over 50 billion in tax dollars to purchase 33% of GM stock. Which mostly goes to bail out the UAW union.

    http://moneycentral.msn.com/ownership?symbol=GM&Holding=5%25+Ownership
    United States Department of the Treasury
    total share ownership 500,065,248

  • Lamborghini Mercy Jul 22, 2011

    jeanerogers: dams and bridges are not going to save this economy simply because of population differences of then vs now. And who's going to develop more funding for this??? The gov is cutting jobs at every level, everywhere. As for those promises, you have to remember when there's Reps and Dems everything has to be reached through COMPROMISES, and AMENDMENTS. What Obama promises has to first go through and be approved by House and Senate -not everyone agrees-

  • Citizens Arrayest Jul 22, 2011

    People are quietly scraping their Obama stickers off their rear windows

  • storchheim Jul 22, 2011

    A "loss" of 31,000 govt jobs is a good start.

  • miseem Jul 22, 2011

    It's going to go higher. Public sector lay offs are just beginning and many that in years past were seasonal in the past will be permanent. Unemployment payments will be going up, retail will be hurt, more homes foreclosed. Hope that extra $20 savings a year per person in sales tax makes the economy boom.

  • Dukefan1 Jul 22, 2011

    ""And a small civics lesson, Congress or the legislature is in "charge" of creating jobs."

    Obama promised. Want me to find the link to where he did that?

    http://www.youtube.com/watch?v=2iWDbopWJk8

    So I don't care whether he or the legislature or congress can supposedly do it or not.

    He promised. Now he either needs to do it or tell the American people he lied when he promised it.

    FDR created new jobs; Obama can do it too."

    Are you kidding me? I promised to get my college student a car, but when the time came, I could not do it financially. Am I do get a car anyway because I promised? Are you kidding me?

    What are you going to do to help create jobs? It's time for each American to ask what they are going to do to help the economy recover? We are all in this together.

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