| 116th Year, 11th Issue | Thursday, October 21, 2004 | Sparta, North Carolina |
August brought solid economic growth to Western North Carolina but the region’s employment trends remain troubling.
The region’s economic activity as measured by the Western North Carolina Economic Index increased 0.4 percent in August to 110. The index has increased at an annual rate of 2.8 percent during the past three months. The 12-month trend shows the region’s economy is growing at a 4.1 percent annual rate. Regional seasonally adjusted employment for the 25-county region decreased 0.1 percent in August. Regional employment has declined three of the past four months.
“The continued soft employment situation illustrates an underlying weakness in the economy. While the economy is improving for businesses, it remains a tough time for individuals seeking employment,” said Todd Cherry, an author of the report. Cherry is the Harlan E. Boyles Professor in Appalachian State University’s Walker College of Business.
The job gains occurring in August were concentrated in 13 western counties within the region, including Rutherford, Swain and Transylvania counties. Job losses occurred in the eastern section, most notably in Caldwell, McDowell and Wilkes counties.
The seasonally adjusted rate of unemployment for Western North Carolina remains unchanged at 5.3 percent, just under the national average of 5.4 percent.
At the county level, Watauga County had the lowest unemployment rate at 2.10 percent, followed by Clay (2.92), Henderson (2.98) and Buncombe (3.07). The highest unemployment rates were recorded in Rutherford County (9.93), followed by Transylvania (8.63), Yancey (8.17) and McDowell (7.56).
All 25 counties had lower unemployment rates in August than a year ago,
but total employment is lower than it was 12 months ago. “Unemployment
remains low, but it is misleading because it is due largely to people
leaving the workforce, not people finding jobs,” Cherry said. “Many
people are discouraged and are giving up their search for work.”
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