North Carolina's jobless figure hits five-year peak

The rate was 6.6 percent in July; the monthly increase was the third largest in the country

North Carolina unemployment last month jumped to a five-year high as 44,522 people entered the work force -- the biggest monthly increase in more than a quarter century.

The jobless rate rose to 6.6 percent from 5.9 percent in June, according to figures released Friday by the N.C. Employment Security Commission.

Only two other states, South Carolina and Mississippi, had larger gains.

A growing population and higher living costs are bringing more people into North Carolina's labor market, straining employers' ability to keep up with job demand.

The statewide jobless rate is the highest since August 2003 and is almost a full percentage point above the national average. U.S. unemployment in July was 5.7 percent.

"I think it's safe to say the North Carolina economy, which has been doing pretty well for the past two or three years, has really slowed," said Harry Davis, a professor at Appalachian State University and an economist for the N.C. Bankers Association. "We were the envy of other states up to three or four months ago."

There's no question that North Carolina is suffering amid a broader downturn that is roiling the global economy.

Goodyear, for instance, today will temporarily shut down a plant that employs 3,000 people in Fayetteville. Demand for its tires has slacked off, and it plans to furlough workers for two weeks to keep inventory in check.

Such actions take a toll on the job market, but the state's successes could have as much to do with rising unemployment.

North Carolina has continued to attract employers during the downturn. Since early July, a furniture manufacturer has pledged 205 jobs for Graham County, a snack maker has promised 263 jobs for Martin County, and an Indian technology giant has committed to 513 jobs in Wake County.

Word of such expansions appeals to people struggling in other places to find work. They come here in search of opportunity.

Things slow in N.Y.

Nathan Davoren, 38, and his wife arrived in Raleigh from New York about a week ago. He works in construction and said that between the slowing economy and the influx of immigrants to the industry he has been unable to find suitable work.

In recent years, he has driven a cab in New York City and delivered furniture in Virginia. He worked in construction in Jacksonville earlier this decade and figured he would have a better shot at landing employment in this state.

"I love North Carolina," he said Friday afternoon as he waited for his wife outside the Employment Security Commission's Raleigh office.

Apparently, many other people share his view.

The increase in people ready to work has been driven, in part, by the state's growing population. But another factor has also contributed.

"With the price of energy, the price of fuel, food, shelter and clothing going up, a lot of people are having to go back to work," said Anna White, regional vice president for the staffing firm Adecco. Specifically, she's seeing the phenomenon in households where one adult had been staying home.

"The environment that we're working and living in every day is changing," added White, who is based in Charlotte.

Employers actually added 12,897 jobs in July -- mostly in the hospitality industry, health care and professional services -- but that was about a quarter as many necessary to keep pace with the number of people who entered the labor market.

At least one economist said he expects conditions to worsen in the coming months. Mike Walden of N.C. State University expects unemployment to rise through the first half of next year.

"We've not yet hit the peak," he said.