Economy remains weak

Employment in Western North Carolina remained below historic figures at the end of the year, with fewer existing jobs than were recorded six months ago. Despite positive growth in November 2007, the economic outlook for 2008 remains weak, according to Todd Cherry, co- author of the Western North Carolina Economic Index and Report.

According to the index, the region's economy increased .4 percent in November 2007, but the index fell for two consecutive months prior to November; the first instance of consecutive declines in three years. The index also indicates the regional economy was stagnant between August and November 2007, said Cherry, a professor in the Department of Economics at Appalachian State.

"While data from November were good, there is an apparent weakness in the regional economy when we look over the last few months," he said. "We have seen no net increase in regional economic activity over the past four months of reporting."

Cherry expects the stagnant trend to continue. "You could definitely say that we are stumbling into 2008. This is true for the national and state economies, but it is more pronounced in Western North Carolina. Looking at preliminary data for December, I suspect we will see additional weaknesses for the region."

Regional employment regained some lost ground in November, but remains weak. Seasonally adjusted employment for Western North Carolina increased .53 percent for the month, which follows a .69 percent decline in October.

Mapping the growth in employment over the preceding month provides a county-level account of job creation. Thirteen of the 25 WNC counties experienced a net gain of jobs in November. All but three counties experienced employment changes (gains or losses) of less than 1.78 percent.

 

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