| 116th Year, 19th Issue | Thursday, December 16, 2004 | Sparta, North Carolina |
After four months of positive growth, Western North Carolina’s economy faltered in October, declining 0.1 percent to 110.5 according to the Western North Carolina Economic Index and Report that was released last week.
“The regional economy lost some traction in October, but the overall economic trend continues to be positive,” says Todd Cherry, an author of the report and the Harlan E. Boyles Professor in Appalachian State University’s Walker College of Business. Cherry said the downturn is a reminder of the economy’s weaknesses.
“The periodic pauses we are observing in regional economic growth illustrate how the labor market continues to be a drag on the economy,” he said.
The region’s seasonally adjusted employment for the 25-county region decreased 0.1 percent in October, the third consecutive month of job losses.
“Despite solid economic growth trends, the region has experienced job losses in five of the past six months, and has about 30,000 fewer jobs than were recorded in January 2001,” he said.
A total of 13 of the region’s 25 counties experienced job losses. Employment declined 0.4 percent across the state in October, 0.3 percent in Asheville and 0.4 percent in the Hickory-Morganton-Lenoir area. While job losses have been felt throughout the region, the foothill counties have experienced the brunt of the losses, Cherry said.
The seasonally adjusted unemployment rate for the 25-county region fell 0.1 percentage points to 5.2 percent from the revised September rate of 5.3 percent. The rate in the region’s rural counties fell 0.2 points in October to 4.8 percent. The unemployment rate in Asheville remained unchanged at 3.4 percent, while the rate for Hickory-Morganton-Lenoir increased 0.2 percentage points to 3.4 percent. County-level seasonally adjusted unemployment rates decreased in 16 of the region’s 25 counties in October.
Alleghany, Transylvania and Mitchell counties experienced the largest
declines in unemployment. According to data in the report, Alleghany’s
unemployment rate fell from 4.88 percent in September to 4.39 percent
in October, meaning Alleghany was ranked near the middle, at No. 12, of
the 25 counties listed in the report. The county’s rate also shows a
decrease from the August number of 5.24 percent and the July number of
5.67 percent.
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