The Alleghany News

Reality Check

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WNC Index shows 2nd quarter up

Western North Carolina economic activity increased .4 percent in June, as measured by the Western North Carolina Economic Index. The index, which tracks the level of economic activity in 25 western North Carolina counties, registered at 118.7. The index rebounded in the second quarter of 2008 after two consecutive quarters of non-growth. According to the index, the regional economy declined in the fourth quarter of 2007 and was flat in the first quarter of 2008.

Seasonally adjusted employment for WNC increased slightly in June—up .06 percent. Regional employment increased .17 during the second quarter of 2008, but is still down .24 percent from the beginning of 2008. Statewide employment fell .1 percent in June.

Fourteen of the 25 WNC counties experienced a net job loss in June. Wilkes and Graham and Caldwell counties had the largest job losses (.62 and .32 percent). Alleghany, Ashe and Watauga counties had the largest job gains (1.11, .86 and .76 percent). Regional unemployment remained unchanged at 6 percent in June. The rate is .6 percentage points higher than three months ago and 1.3 points higher than 12 months ago.

The state unemployment rate increased .1 point, registering 6 percent for the month. The national unemployment rate remained unchanged at 5.5 percent.

The seasonally adjusted unemployment rate within the region's rural counties increased .1 point to 6.2 percent in June. Unemployment remained unchanged in the region's metro areas, registering 4.7 percent in Asheville and 7.2 percent in Hickory-Morganton-Lenoir. Unemployment has increased in both metro areas over the past 12 months—up 1.1 points in Asheville and up 1.3 points in Hickory-Morganton-Lenoir.

Mapping the unemployment rate at the county-level illustrates the spatial variation of unemployment in the region. Seasonally adjusted unemployment was higher in eight of the 25 WNC counties.

Swain, Rutherford and Graham counties had the largest increases in unemployment in June (1.15, .37 and .27 points). Macon, Mitchell and Jackson counties had the largest declines in rates (.51, .33 and .29 point).

All 25 counties have higher unemployment rates than 12 months ago. Madison, Graham and Wilkes counties have experienced the largest increases in unemployment (1.66, 1.63 and 1.50 points). Rutherford and Watauga counties have had the smallest increases in rates (.24 and .36 point).

Seasonally adjusted initial claims for unemployment insurance in the region, a leading indicator of unemployment, fell .4 percent in June. Initial claims increased 11.8 percent in Asheville, and increased 5.9 percent in Hickory-Morganton-Lenoir.

The WNC Index and Report are compiled and written by Todd L. Cherry and John W. Dawson of the Department of Economics at Appalachian State University, and Richard Crepeau of the Department of Geography and Planning at Appalachian State University. The index is a cooperative effort by AdvantageWest-North Carolina and Appalachian State University's Walker College of Business and Appalachian Regional Development Institute. River water intake sites down to 3 By COBY LaRUE
Staff

Proposed sites for a water intake on the New River have been narrowed to three or four sites, Town Manager Bryan Edwards confirmed late last week. The water authority held a meeting on Aug. 14, most of which was held in closed session. "Over the course of this thing, we have evaluated six or seven sites," Edwards said. "We have three or four sites that we consider to be viable."

Edwards said the board has been in discussions with property owners about purchasing the land for the proposed plant, which would operate under the Virginia/Carolina Water Authority Board and would serve water to the towns of Sparta and Independence, Va.

However, if arrangements cannot be made, Edwards said the board could choose to look elsewhere. "We have not said that we would not go beyond those three," Edwards commented. "If none of those look to be suitable arrangements, we would look somewhere else."

At the meeting Aug. 14 were several property owners along the river off Riverwood Lane, which is in North Carolina. The water authority board has said the proposed plant would be in Viginia, but the property owners have voiced concerns that water lines might cross their property.

Edwards said some property owners have made assumptions about where the sites are, even though those sites haven't been finalized. "I can't comment on that at this point and time."