N.C. Unemployment Rate Drops, State Adds Jobs | Eastern NC Now

   Publisher's note: The author of this fine report is Rick Henderson, who is an managing editor of the Carolina Journal, John Hood Publisher.

Nearly half of job growth in government sector

    RALEIGH     North Carolina's February unemployment rate dropped in both seasonally adjusted and unadjusted measures, the state's Department of Commerce reported today. The state also added 25,300 jobs using the not seasonally adjusted or unadjusted measurement. Nearly half of the growth in jobs, according to unadjusted figures, was recorded in government.

    Commerce reported a drop in the seasonally adjusted rate from 10.2 percent in January to 9.9 percent in February (PDF download of press release here). The unadjusted rate fell slightly more, from 10.5 percent to 10.1 percent.

    Even with the monthly improvement, North Carolina's unemployment rate exceeds the national rate by more than a percentage point using either measurement. The seasonally adjusted rate is 8.3 percent; the unadjusted rate is 8.7 percent. Only three states have higher unemployment rates (seasonally adjusted) than North Carolina: Nevada at 12.3 percent; Rhode Island at 11.0 percent; and California at 10.9 percent.

    According to the federal Bureau of Labor Statistics, North Carolina remained one of 30 states with an unemployment rate "significantly different" from the national rate of 8.3 percent -- but one of only seven with a rate significantly higher than the national average.

    In unadjusted terms, North Carolina added 25,300 jobs from January to February -- 12,400 of the growth, or 49 percent, was in the government sector. The BLS reported a gain of 10,100 state government jobs and 2,400 local government jobs. State government education services (including public community colleges and universities) added 6,600 jobs; local government education added 1,400 positions.

    The over-the-year figures (February 2011 to February 2012) show a growth of 4,400 government jobs, with 200 new federal jobs, 2,100 state government jobs, and 2,100 local government positions. In educational services, the state added 600 jobs while local government lost 3,200. Private employers added 37,700 jobs.

    The massive jobs losses predicted by Democratic politicians and liberal interest groups as a consequence of the budget passed by the GOP General Assembly have failed to materialize, particularly in the private sector. Perdue and others were estimating a loss of as many as 30,000 government jobs.

    The liberal N.C. Tax & Budget Center last year estimated that by the end of the two-year budget cycle in June 2013, the tax reductions and spending cuts enacted by the 2011 General Assembly would lead to nearly 40,000 jobs lost in the state, roughly half of them in the private sector.

    To reach a net loss of 20,000 private sector jobs by June 2013, the state would have to lose nearly 60,000 jobs between now and then.