The Triangle's jobless rate rose significantly in August, news that is certain to raise concerns about whether the economy is headed back into recession.
The region's unemployment rate rose to 8.7 percent in August, according to data released Friday by the N.C. Employment Security Commission and seasonally adjusted by Wells Fargo Securities economists in Charlotte.
That's up from 8.3 percent in July.
"The economy worsened in August across the country and in North Carolina and there's really no escaping that fact," said Wells Fargo senior economist Mark Vitner.
"It looks like what you would see at the start of a recession. That doesn't mean that a new recession has begun but we've heard an awful lot of recession talk lately and there's not a whole lot of margin for error in the economy with growth having already been so sluggish."
Vitner said the Triangle's job creation numbers remain in positive territory compared to last year, but hiring has stagnated over the last three months.
He said the worsening financial crisis in Europe has made businesses even more cautious.
"Folks are holding off on making major decisions," he said.
The News & Observer uses adjusted local data to provide better comparisons with the state and national rates, which are adjusted for seasonal factors.
At 8.7 percent, the Triangle unemployment rate is now at its highest point since February 2010.
Last week, the ESC reported that statewide the jobless rate rose to 10.4 percent last month - up from 10.1 percent in July. The August jobless rate is the state's highest in more than a year.
Business reporter David Bracken came to the N&O in 2004. He covers commercial and residential real estate. Contact David at 919-829-4548 or
Comments
Politics won't solve problems
Fri, 09/23/2011 - 20:13 — FlowerpowerAll this partianship does nothing to get at the roots of problems, and figure out solutions. The Dems did it, no, the Repubs did it, and all the while the war against solutions rages on. What would solve the problems? Huh? The problems are THERE, regardless of HOW they got there. Now whatcha going to do about them?
Economics
Fri, 09/23/2011 - 14:32 — chilliwetwater"Let me ask you this, if your family budget is in the hole and you aren't making ends meet, do you break out another credit card and keep spending or do you try to cut down on your expenses?"
Please explain
Fri, 09/23/2011 - 15:16 — readeracctPlease explain to me how "spend our way out of a recession works."
You offered no substance to your posting.
you know this is a direct
Fri, 09/23/2011 - 12:38 — lovebaconyou know this is a direct result of the gop's destruction of our educational system. when you lay off thousands of people, unemployment goes up.
Really? Who knew the NC
Fri, 09/23/2011 - 13:10 — LibSlayerReally? Who knew the NC GOP had such all encompassing power as to cause unemployment to skyrocket not only in the Triangle, but in states such as California, and were able to push the black teenage unemployment rate in DC to 50%!
Who mentioned Ca and DC? I'm
Fri, 09/23/2011 - 15:24 — lovebaconWho mentioned Ca and DC? I'm talking about wake county.....and you know chillsville sometimes when my expenses become greather then my income, I don't purposely reduce my income...I figure out a way to get more money if cutting expenses means dooming my future. That's what the gop did by eliminating a one cent tax that nobody but you right wingnuts was complaining about.
You can thank the right wing nuts
Fri, 09/23/2011 - 17:32 — readeracctYou can thank the right wing nuts for letting you keep another cent (one percent, to be more accurate), so that you can go spend more time in chillsville. Thank them for finding a way for you to get more money.
one cent?
Fri, 09/23/2011 - 19:58 — riddickfieldI love how the libs always call taking away 1% of my money as only taking one cent. Its a heck of a lot more than a penny. I for one am glad the GOP ended the temporary tax. Far too many times the democratic led government here have instaled 'temporary taxes' on us which are now permanent. Anyone remember when we didn't have to pay sales tax on food? Yup, that was a 'temporary tax' of only a penny and a half that has been around for a generation.
Great reply.
Fri, 09/23/2011 - 13:14 — MagLarRGCGreat reply.
When is the last time
Fri, 09/23/2011 - 12:11 — LibSlayerWhen is the last time Dumpling referred to herself as "The Jobs Governor"?
Thanks!
Fri, 09/23/2011 - 11:46 — readeracctThanks Obama voters.
You should be!
Fri, 09/23/2011 - 12:51 — rspct1Economists have, time and again, credited the Obama Economic Stimulus plan with keeping unemployment from reaching 12% and creating 2,000,000 jobs. The recession that he was faced with when entering office was a culmination of bad economics beginning with Reagan in 1981. If GWB hadn't cut taxes and started two unfunded wars, Obama would have had more funds with which to spend the way out of the recession. Instead he was given a $1.3 trillion spending deficit and no real options. The only thing we can really blame his administration for is not spending enough. Given the situation, he did the best he could with what he had.
If you're looking for scape goats you should first look at the news outlets where you are getting your information. The right wing lobbyists are out in force to convince you that Obama has failed economic policy that has lead to this recession in order to get you to vote for their candidate. I've seen the candidates who are the front runners and listened to their ideas. Those ideas have been tried before and are miserable failures.
I can't believe what I just read!
Fri, 09/23/2011 - 14:18 — readeracct1) I thought that the stimulus was intended to keep unemployment below 8%? What happened?
2) Creating two millions jobs? Where do you get your information?
3) You wrote: "If GWB hadn't cut taxes and started two unfunded wars, Obama would have had more funds with which to spend the way out of the recession. "
Let me see, there are two parts to this one: I thought that Obama was going to stop the wars? You also write, "spend the way out of the recession." Are you serious? Let me ask you this, if your family budget is in the hole and you aren't making ends meet, do you break out another credit card and keep spending or do you try to cut down on your expenses?
4) The Democrats don't even have a balanced budget or one that begins to reduce the deficit, so it's laughable that you cite that Obama was "given" a $1.3 trillion spending deficit.
5) Still blaming Bush? It's been nearly three years! What has the current administration improved in regards to the U.S. economy? Seriously! I was better off under GWB.
6) As you might imagine, I get my news from N&O. That's why I am here, but I browse a lot of other news sources to get different perspectives as I believe everyone should.
7) I don't need to listen to "right wing lobbyists" about the state of Obama's failed economic policy. I CAN SEE IT!
8) I am an independent/unaffiliated registered voter. I voted for the most qualified candidate, but sadly, the most unqualified won. Hopefully, voters in 2012 won't make the same mistake twice.
Truth hurts
Fri, 09/23/2011 - 15:30 — rspct11) Obama came into Washington with a compromise stance. He listened to what the GOP said and he compromised. This gave us a watered down version of an economic stimulus plan with far to many tax cuts. Without compromise, maybe we'd be in a different place.
2) Congressional Budget Office. Stimulus increased employment by 1.4 and 3.3 million compared to what would be expected without it.
3) Obama is stopping the wars. It's a slow process, but I'm sure you'd know how to do it better. Your analogy to my family spending and the government spending are comparing two completely different animals. I agree with you that there is too much government spending, but cutting back on it in the midst of a recession is a bad plan. You can temporarily boost the GDP of the country by pumping money back into the economy. I'm curious now, what do you think the stimulus package was doing exactly, if not this? What little was done actually helped, how would more of that not also help?
4) In 2000 there was a $200 million budget surplus. In 2008 there was a $1.3 trillion budget deficit. Those eight years there, those weren't Obama.
5) I can still blame Bush because he's still to blame. He won't stop being to blame because this happened under his watch. He actually started the economic stimulus and the automotive bailout when he was still in office.
6) Good. So do I. Find some good non-profit news sources.
7) It's not a failure if you consider the alternatives. And what were those alternatives at the time? Really consider where we'd be as a country if, as soon as he took office, we cut government spending to balance the budget and just let things take care of themselves. I don't know what you imagine, but what I imagine is not a pretty sight.
8) Independent/unaffiliated voter here too. I don't think we'd be anywhere different with McCain in office. Obama is really not that different than McCain as far as policy, in fact, some of what he says now I like more than what Obama is doing.
I'll just leave you with my original point: The stimulus package was not a failure. It did have benefits to employment and the economy and we are better off than not having it at all.