| 117th Year, 2nd Issue | Thursday, August 18, 2005 | Sparta, North Carolina |
June was a good month for the region’s economy, according to statistics tracked in the Western North Carolina Economic Index. Economic activity made a substantial jump, climbing .6 percent to 117.6 for the month.
The index, compiled by professors at Appalachian State University, tracks the level of economic activity in 25 western North Carolina counties.
It indicates the WNC economy increased 4 percent in the second quarter of 2005. Advanced estimates find the U.S. economy grew at the slower pace of 3.4 percent during the same period.
While there was a big jump in economic activity, the labor market was not as strong. “As always, one cannot take too much from a single month’s data. You must look at the big picture, and things still look good,” said Todd Cherry, an author of the report. Cherry is the Harlan E. Boyles Professor in Appalachian’s Walker College of Business. “The labor market was not as strong in June,” Cherry said. “The region had a slight gain in employment for the month, but that was better than the job losses felt at the state level.”
Job growth in the second quarter of 2005 was at an annual rate of 2 percent. WNC employment increased .06 percent while state employment fell .3 percent in June. The region has added more than 10,500 jobs since May 2004. The job growth was limited to less than half of the WNC counties (10 of 25). The northwest area had job gains in June, after months of job losses. The foothill counties felt job losses for the month, with Wilkes County being the one exception.
“But June employment data is no immediate cause for concern,” Cherry said. “Recent reports indicate the labor market should continue to improve.”
The seasonally adjusted rate of unemployment for the WNC region was 5.5
percent in June, up .2 percentage points from May. “The region has not
had much movement in unemployment rates since the declines experienced
in 2003,” Cherry said. “Since then, it has been hovering around 5.5
percent.”
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