North Carolina's jobless rate rose to 9.9 percent in June, the highest level since last fall and the first increase in more than a year.
The increase, from 9.7 percent in May, reflects employers' reluctance to hire as uncertainty about the economic recovery worsens.
And the state budget crunch also took a toll. There were 10,200 fewer government jobs in June, as the state, community colleges and universities eliminated positions.
North Carolina's unemployment rate remains well above the national average, which also rose in June to 9.2 percent. This state has a higher concentration of manufacturing jobs, which were hit hard during the recession.
A year ago, the state rate was 10.5 percent. High fuel costs, a lingering housing slump and other factors have eroded confidence that hiring will rebound quickly in the wake of the recession.
Just this week, Cisco Systems announced plans to cut 6,500 jobs, and bankrupt Borders Group said it will close its remaining 399 stores by September.
With key elections looming in 2012, the stubbornly high jobless rate has become a key political hot button.
The latest figures were released Friday by the N.C. Employment Security Commission. In the release, ESC chairman Lynn Holmes pointed out that Gov. Bev Perdue "continues to make job growth a top priority."
In recent weeks, Perdue has announced planned expansions that are expected to add hundreds of jobs at companies such as Lord Corp. in Cary, Semprius in Henderson, Spirit AeroSystems in Kinston and Time Warner Cable in Charlotte.
But state GOP chairman Robin Hayes rushed to use the gloomy employment report of evidence that Democrats' policies aren't helping job seekers.
"These job figures are a somber reminder that Governor Perdue and President Obama are nothing more than roadblocks to job-creation and we cannot afford another four more years of their failed economic policies,” he said in a release.
While the Triangle continues to fare better than the rest of the state, the local jobless rate is still high by historic comparisons. The May rate was 7.7 percent, after adjusting for seasonal factors.
The ESC is scheduled to release county-specific data for June next Friday.
Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or
Comments
Republicons
Fri, 07/22/2011 - 17:41 — WakeUpTheNationHow can the jobless rate go up in NC? How can this be?? We have a republicon majority in the state house and senate. Where are the jobs that the republicons promised?? The truth is that if you are a large corporation and you take jobs overseas, well then the republicons will support you. If you make over 500,000 a year, well guess what the republicons will support you. If you are an average worker in the state, well guess what you are out of luck. The party of Herbert Hoover is alive and well. Corporate Socializm is alive and well in NC thanks to the NC Rebublicon party.
It's funny
Fri, 07/22/2011 - 14:42 — TheLibertineYou could cut NC state workers by another 50%, and I wouldn't notice a hint of a difference -- it's only those of you who are leaches on the system who are chafing. [chuckle] All of the pablum chewing sheeple posting on this article make me laugh. I hope that change is all you hoped for.
IT'S FUNNY
Fri, 07/22/2011 - 15:33 — edmcm15I love the comment, "cut 50% and you I would not notice." Please list the 50% you would not notice being eliminated. Can you name specific "leaches" on the system and what they do or I suppose, do not do?
Cut NC state workers by 50%
Fri, 07/22/2011 - 15:07 — profbamMay I suggest that we eliminate all Corrections officers and shut down the prisons. Would you notice that?
Government Job Cuts
Fri, 07/22/2011 - 14:41 — bilgewaterThe legislators were given a choice and passed their decision to the administrators of the colleges and universities. Amazingly enough the administrators decided they needed to drop workers rather than cutting the pay of most workers.
Is the state better off with more unemployment benefits going out?Could the state find the income taxes and sales taxes would have been lower,but not disappeared?And what about the increased cost of providing medical care for newly uninsured college and junior college employees?How is this helping the state's finances?
...well....no surprises here
Fri, 07/22/2011 - 14:01 — wjolly...well....no surprises here for the most part....Phil Berger and his cronies make cuts to the state workers...and what did they expect??....laughing hard at all the GOP'ers who thought that this would help....laughing even harder at the fools who are still trying to blame this on Democrats....sorry, you Bozo's,...this is all of your making now...hard to believe...eliminating jobs...when Berger and the boys ran on a platform of creating jobs...either they are liars or totally incompetent boobs...along with those that voted for them...
I bought a large fish plate
Fri, 07/22/2011 - 13:24 — chilliwetwaterI bought a large fish plate to split with my aged mother and because of the sunsetting of the one cent additional sales tax, it cost me $8.87 instead of $8.95. I just don't know what I'll do with all that money! How many teachers, museum workers and state park workers lost their jobs so I could have an extra $.08 in my pocket?
17,000
Fri, 07/22/2011 - 11:07 — youthinksoWhere are the 17,000 jobs Speaker Tillis?
NC employers should be confident following the drama, " Crippling NC, Part 1". It is mighty quiet on Jones Street.
Where are the jobs, Speaker Tillis?
Budget Cutting = Job Losses
Fri, 07/22/2011 - 11:07 — keihinCuts to the budgets in our State and Local governments, Universities and Community Colleges have taken hold, and the toll to be paid is one of job losses and further unemployment. This is why its smart to make cuts after a recovery has taken hold, not before. I lament the short-sighted actions of our State Legislature. A regret I'm sure is shared by the unemployed teachers out there.
Reduce Taxes, Create Jobs
Fri, 07/22/2011 - 11:04 — edmcm15If the political sound bite that reducing taxes, is a job creator, then the unemployment from July forward should begin to decline rapidly. If not, then the R's in our State Legislature have failed their own "fact test". I await the July report, to see exactly how many jobs are created by the halt of the one cent of sales tax, which according to the R's will result in more consumer spending, thus more job creation. Duh, the saved money is going in the gas tank,,,think energy prices play a role in job creation? Oh, my, did they deduct the spending lost from all those discontinued state employees.......? Wonder which puts more money into consumer spending, reduced sales tax or jobs they subtracted from the consumer spending?
Let's keep our priorities straight
Fri, 07/22/2011 - 10:43 — DrBentonQuestI think what is most important is that, at the very least, Bev Purdue's and Barack Obama's names and policies are not associated with this. That is why I appreciate the News and Observers' ongoing stories about Republican intransience. Let's not add to the problem folks by putting two more people out of work. Just because 25% of North Carolinians are either unemployed or underemployed doesn't mean we should add to the problem by having Bev and Barack lose their jobs also.