Economy grows, but not jobs

BOONE—Increased productivity, not job growth, continues to fuel Western North Carolina's economy, according to Todd Cherry, an economist at Appalachian State University and an author of the Western North Carolina Economic Index and Report.

According to the index, which was released on Monday, WNC's economy rose 0.7 percent in January, and grew at an annual rate of 5.2 percent during the past three months. The index, which tracks economic activity in 25 western counties, was rescaled in January and registered 107.4. The release of the January index was delayed because of a delay in data released by government agencies.

"The regional economy is going strong, but the growth does not translate to significant job growth," Cherry said. "Increased productivity is allowing our economy to grow without hiring more people."

Seasonally adjusted employment for the region and state declined in January, according to the index. WNC employment decreased 0.4 percent and state employment decreased 0.6 percent.

"The lack of job creation during continued economic growth still persists at the regional, state and national levels," Cherry said. Seven of the region's 25 counties had job growth in January, with most increases occurring in the Asheville and Boone areas. Job losses generally occurred in the foothill counties, especially in the Hickory-Morganton-Lenoir metro area.

The seasonally adjusted rate of unemployment decreased 0.7 percentage points to 5.7 percent in January. Unemployment across the state was 5.8 percent.

Unemployment in the rural counties declined to 5.3 percent. The metro areas saw unemployment drop to 3.7 percent in Asheville and 7.9 percent in the Hickory-Morganton-Lenoir area.

While county-level seasonally adjusted unemployment declined across the region, the drop is because many people have stopped looking for jobs, Cherry said. Watauga County had the lowest unemployment rate at 1.85 percent, while Rutherford County had the highest at 11.59 percent.

Eleven counties had unemployment below 4.25 percent; four counties had rates above 8.01 percent.

Here in Alleghany County, the unemployment rate for January was 6.01 percent, down from 7.41 percent in December 2003.

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