CORRECTION

A story in the Business section Saturday incorrectly stated that Volkswagen is planning its first U.S. factory. It had a plant in Pennsylvania that closed in 1988.

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This has been a topsy-turvy week for the state's labor market.

If you're keeping score, North Carolina won four expansions from companies that agreed to create 633 jobs. Two large manufacturers, though, said they would cut more than 1,312 positions. That's a net loss of 679 jobs in just five days.

Those developments don't account for all the economic activity in the state, just the major wins and losses. But they are a yardstick for how North Carolina is faring amid the economic downturn. It also puts a spotlight on economic development efforts.

North Carolina lost a major project Wednesday when NetJets decided to expand in Ohio instead of the Triangle, which made the company's short list. The private airline plans to create at least 810 jobs during the next few years.

Business recruiters report a full pipeline of other deals that could bring jobs to the state. But challenges persist.

"There is no doubt, there is some hesitation," Robert J. Hess, a site-selection consultant with Cushman & Wakefield in Rosemont, Ill., said recently on the sidelines of the N.C. Economic Developers Association conference in Pinehurst.

Since credit markets seized up in the fall, some companies have found it harder to get financing for new buildings and equipment. Executives at other businesses, uncertain how long the slowdown will go on, have put the brakes on projects they had aggressively pursued.

"That's the domestic view," Hess said. "On the global side, it's still very active."

Recruiters have seen an uptick in interest from companies with European or Middle Eastern roots. The companies are drawn by the weak dollar, which effectively puts land and offices in this country on sale for those carrying foreign cash.

BMW this week said it plans to spend $750 million upgrading its plant in South Carolina to take advantage of the disparity in currency values. Volkswagen, another German automaker, is contemplating its first U.S. factory. A site near Rocky Mount has been mentioned as a possible candidate.

The trends are important to North Carolina's economy.

Employment growth overall has slowed by about 70 percent compared with a year ago because of the broader economic troubles.

Still, the state is better off than most of the country. From January 2007 to January 2008, established businesses added more jobs in North Carolina than in any other state, except Texas and New York.

But layoffs are happening at a quickening pace. Just this month in this area, which is among the healthiest in the state, Motricity announced 250 job cuts in Durham. Kroger decided to close a Cary store, affecting 105 workers. In Siler City, Pilgrim's Pride announced this week that it will shut a chicken plant, cutting 836 jobs.

That increases the pressure on recruiters. While most job growth comes from incremental increases by existing businesses, new companies help diversify the economy and protect communities when the economy dips.

Since 2002, North Carolina has won almost 100,000 jobs and $14.65 billion in investment from business recruitment, according to figures from the N.C. Department of Commerce. Officials here have stepped up use of incentives -- a recent legislative report put the total at $1 billion a year -- which have aided that growth.

Often, though, other factors carry more weight in location decisions. NetJets' CEO said incentives were not the primary factor.

His preference all along was to keep the operation in Columbus, Ohio, albeit with stronger ties to local universities and other changes.

Just making NetJets' final list could help North Carolina, Commerce Secretary Jim Fain said. It could prompt other aviation businesses to consider the state.

Stay tuned.