State jobless rate inches up

North Carolina's unemployment rate rose slightly to 11 percent in October, as the state's battered jobs market continues to frustrate the increasing ranks of laid-off workers.

Last month's rate was just shy of the May level of 11.1 percent, which was the highest the state reached this year.

Despite the increase, there were a few positive signs, said Mark Vitner, senior economist for Wells Fargo.

Seasonally adjusted, the state gained 12,100 jobs, according to data released Friday by the N.C. Employment Security Commission. Nearly half of those were in educational and health services and government - something expected as schools restart in the fall.

But manufacturing, transportation and financial services also gained jobs.

"The process of finding a bottom is agonizingly slow," he said. "I don't think that the 12,000 jobs we adjusted is the start of a long run in job growth. I wish it were."

Instead, Vitner predicted, it will probably be next spring before the economy truly picks back up.

"The report is consistent with what you'd see at the bottom of the business cycle and what you'd see at the beginning stages of recovery," he said.

That's unwelcome news to those who have been out of work for months already. The state's jobless rate has been in double digits for nine straight months.

Angel Bostic has been looking for work for a year since she was laid off from her job in the food service business.

With kids ages 6, 10 and 14, she said making ends meet on her $125 a week in unemployment benefits is nearly impossible. "You see hiring signs, but they are only taking applications," said Bostic, 30, of Raleigh. "I feel like it's false advertising."

Things are so tight that Bostic had to give up her car. She borrows her parents' car one day a week to visit the Raleigh ESC office and look for jobs.

"If something goes wrong with my kids, I can't get to school," she said.

The number of unemployed people in the state increased by 4,537 in October. Compared with October 2008, there are more than 174,000 more unemployed people across the state.

The Triangle's jobless rate was 8.9 percent in September, as this region remained relatively healthy compared to the state. The Employment Security Commission is scheduled to release local data for October on Dec. 1.

Looking ahead to the rest of the year, seasonal employment for the holidays will likely be lower than usual, Vitner said, with retailers trimming costs and with fewer stores to staff.

Layoffs, including local cuts announced this week by Sony Ericsson in Research Triangle Park and Kellogg's in Cary won't help.

Some sectors, including energy and technology, are showing some promise of recovering, Vitner said. Companies are investing and workers are putting in more hours.

"That helps drive growth in the overall economy," he said. "As demand begins to revive, what happens first is the folks that are working start working longer hours. Then maybe the ones who work on commission see their income start to go up. Eventually that helps produce job growth."

But economic growth may slow as federal funding dries up for programs such as the first-time homebuyer credit, said John Quinterno, principal for South by North Strategies, a Chapel Hill research firm specializing in economic and social policy.

"I don't see anything in the private sector that's going to create any kind of big demand for services and, by extension, labor," he said. "Folks are preparing themselves and acting as if there's going to be a much longer, much more prolonged recovery."

Some job seekers say they don't think things are improving much.

Jermaine Baldwin was laid off from his job as a delivery driver in February. Since then he's been collecting $180 a week in unemployment and taking odd jobs. In all, it's about half of what he used to make.

His girlfriend was laid off about the same time.

"I have a girlfriend and we can't even go out," said Bald win, 30, of Raleigh. "We just help each other pay bills."

"I know some people in my neighborhood, and if they do get a job it's minimum wage with no benefits," he said. "I have $675 rent, a $150 light bill and I get $180 a week in unemployment."