North Carolina unemployment surged to 11.1 percent in May, a sign that despite glimmers of optimism in the economy, the labor market is continuing to take a wallop in this
recession.

The total number of people employed in the state fell by 28,855 during the month, according to data released by the N.C. Employment Security Commission. The labor force also contracted, suggesting that some workers gave up hope of finding a job altogether.

In April, N.C. unemployment was 10.7 percent. Nationwide, it was 9.4 percent in May.