Region’s economy is strong; few jobs

Western North Carolina’s economy continued to grow at a good clip in September, but the strong performance has yet to affect the job market, according to the Western North Carolina Economic Index and Report.

The index, which tracks economic activity in the state’s 25 western counties, increased 0.5 percent to 110.5 in September. The region’s economy has grown at a 4 percent annual rate during the past six months. However, the growth is based on an uneven performance.

“Economic activity, and the related incomes and spending continue to perform very well, but this activity still has yet to translate into a better job market,” said Todd Cherry, an author of the report. Cherry is the Harlan E. Boyles Professor in Appalachian State University’s Walker College of Business.

Regional seasonally adjusted employment for the 25 counties in the region declined 0.4 percent in September, according to the index and report. Unemployment remain-ed unchanged at 5.2 percent.

“Unemployment is low but that is misleading,” Cherry said. “The lower unemployment we see is likely due to people leaving the workforce, not from job growth.” As a consequence, Cherry said wages will likely remain stagnant for the time being, but he believes that change is on the horizon. “The data is suggesting things may be turning around in the labor market,” he said. “The latest job growth figures were higher than expected. Productivity increases are leveling off, and unemployment has edged upward, which suggests that previously discouraged people are becoming more optimistic about their prospects and have resumed looking for work. It will be interesting to see if these indications take root and we begin to finally see the region’s economic growth translate to better jobs and wages.”

Employment declined 0.5 percent statewide, and fell in the region’s metro areas as well — down 0.2 percent in Asheville and down 0.8 percent in Hickory-Morganton-Lenoir. Only two counties in the region —Swain and Jackson — experienced job growth. The greatest job losses occurred in the foothill and northwest counties.

Within the rural counties, the seasonally adjusted unemployment rate fell 0.2 points to 4.9 percent.

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