Biz Blog

Choose a blog

Triangle job market worsened in June

Bookmark and Share

The Triangle jobs picture took a turn for the worse in June, confirming the economists' gloomy expectations.

The jobless rate for the Triangle inched up to 8.1 percent, up from 7.8 percent in May.

The regional economy shrunk by 500 jobs.

And the number of people looking for work also decreased by 1,000.

All three measures, issued this morning by the N.C. Employment Commission, show that the Triangle's economy is moving backwards. The figures are seasonally adjusted by Wells Fargo in Charlotte.

"It's hard to be too optimistic," said Wells Fargo economist Mark Vitner. "The economy has much less momentum than we previously thought."

Vitner said June typically brings a temporary slowdown as school lets out and students and teachers flood the job market. But much of the problem this time comes from a runup in consumer prices, particularly gasoline and food.

The nation's gross domestic product, a measure of all goods and services produced, was an anemic 1.3 percent in the second quarter. "Anything less than 2 percent will push up unemployment," Vitner said.

Plus, cutbacks in state and local goverment spending across the nation were 3.4 percent in the first quarter and 3.4 percent in the second quarter. Government spending has been one of the most reliable sources of revenue for a broad range of businesses in the private sector.

Locally, that dropoff resulted in a loss of more than 2,000 jobs in government in June, the single biggest source of job depletion in the Triangle.

For the economy to sustain a healthy recovery, the Triangle would have to gain at least 20,000 jobs this year, but as of mid-year the job gain is less than 4,000.

Comments

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Well unless they...

Well, unless they eliminate collective bargaining and force the teachers to work anyway at lower wages with fewer benefits like they did in Wisconsin.

New Jobs

Gee, we find it interesting that the Governor's Newsletter tells us all about the jobs she has created. But apparently not all is roses with the governor's plans for new jobs (even if she thinks it is).

The governor creates jobs,

The governor creates jobs, and the republican budget takes them away.  As cited in the article, reduction in government spending was the single biggest cause of job losses in our area.  It makes sense, right?  You can't lay off tons of school system employees, for example, and then blame their unemployment on someone else.

No politician creates jobs

Where did the idea that politicians create jobs?  The governor has not created a job, the president has never created a job.  Creating a government job is simply replacing a job in the private sector.  It takes money out of the private sector and places it in control of the government.  That type thinking is exactly what got us to this point.  Government jobs are just a trade off in the economy.  There are many government jobs that are needed and nearly as many which are not.  Simply put, the government grows just to keep power, not to provide any more services.  The governor creates jobs>>>>>now that is funny.

"You can't lay off tons of

"You can't lay off tons of school system employees, for example, and then blame their unemployment on someone else."

That's exactly what the GOP is doing nationwide -- imposing austerity budgets in the hope that the resulting suffering will impact the November election in their favor.  It's a cynical ploy at best.

Recovery Summer 2.0!!! Hope

Recovery Summer 2.0!!!

Hope and Change!  Hope and Change!

Cars View All
Find a Car
Go
Jobs View All
Find a Job
Go
Homes View All
Find a Home
Go

Want to post a comment?

In order to join the conversation, you must be a member of newsobserver.com. Click here to register or to log in.

About the blogger

John Murawski has been a full-time newspaper reporter since 1991, with stints at Legal Times and The Chronicle of Philanthropy (both in Washington, DC), The Philadelphia Inquirer and The Palm Beach Post (in South Florida) before arriving at the N&O in December 2004. At the N&O he covers energy (nuclear, coal, renewable, efficiency), hydraulic fracturing (or "fracking"), public utilities and health care. His beat includes PSNC Energy, Piedmont Natural Gas, Duke Energy Progress, PowerSecure International, GlaxoSmithKline, Merck, Novo Nordisk, Pfizer, Biogen Idec and others. He has also contributed more than 30 book reviews on topics spanning botany, history, science and religion. You can reach him at 919-829-8932 or e-mail him.
Advertisements