NC’s unemployment rate hits historic high of 11.2 percent, marks 11 months in double-digits

NC December jobless rate hits historic high

RALEIGH, N.C. — North Carolina’s unemployment rate hit a historic high of 11.2 percent in December as the tally of jobs lost by the state’s workers since the recession started two years ago neared 250,000.

December’s jobless rate of 11.2 percent rose from 10.8 percent in November, the Employment Security Commission said Friday.

“That’s a pretty significant jump in the unemployment rate when we’ve been into the recovery this long,” said Harry Davis, the chief economist for the North Carolina Bankers Association and an Appalachian State University banking professor.

Many economists believe the national economy started recovering last summer. But job growth lags an economic rebound because companies need convincing that customers won’t quickly disappear again. So unemployment may keep rising at the same time there are other indications that economic prospects are improving.

December marked the eleventh straight month the state’s unemployment rate has hovered around 11 percent. In December 2008, the state rate was 8.1 percent.

While December’s rate may be revised later, it is fractionally higher than the previous peak of 11.1 percent in May.

The national jobless rate in December was 10 percent, the same as the previous month.

Since the U.S. fell into recession in Dec. 2007, North Carolina has lost 248,000 nonfarm jobs. Manufacturers have slashed 95,500 workers since that time, while construction companies cut 65,800.

Those two sectors shed 2,100 positions in December, but the month’s biggest loser was the 2,600 jobs cut by leisure and hospitality services like hotels and entertainment companies.

That’s no surprise with consumers worried about their incomes cutting back on luxuries, Davis said. More losses at leisure companies can be expected this year, he said.

But manufacturing and construction job losses have about bottomed out, Davis said.

“We’ve now lost most of the low-paying, low-skilled jobs that are going to go overseas,” he said. “We’ve lost so many that’s probably about run its course.”