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Local unemployment on the rise

Posted on November 21, 2008November 21, 2008 by Staff

By Margot Carmichael Lester
Staff Writer

The U.S. Department of Labor released staggering unemployment figures for October (240,000 jobs lost nationally). But buried in the data was even more stunning news: September job loss data was revised up to 284,000 – making September 2008 one of the worst month’s for job losses in history. And, get this: At this pace, 2008 annual job cuts will surpass a million for the first time since 2005.

The national trend is borne out here at home. September unemployment claims in Orange and Chatham counties (see chart at bottom of story) were up dramatically for the year, as more of our own are out of work.

While it’s pretty much impossible to say how much of the unemployment rate is directly attributable to the economic conditions (that sort of data isn’t collected), the recession is having an impact on the numbers.

“It could be several points,” said Andrew James, director of public information for the Employment Security Commission of North Carolina. Before the recession in 2005 and 2006, the statewide unemployment rate was in the 4.5 percent to 5 percent range. “Now we are nearing 7 percent, so the slowdown might be the reason for that 2 to 2.5 percent increase.”

Former Carrboro resident Kathryn Merritt is one of the unemployed. The writer/editor moved back to North Carolina in July after living and working in London for almost 15 years and has been seeking a permanent job in communications at UNC or for a nonprofit in Chapel Hill or Carrboro ever since.

Though she hasn’t put a time limit on finding a gig, Merritt says she may return to London if something doesn’t break soon.

“Even though the recession is hitting there too, I had regular work, good contacts and didn’t have to worry about not having health insurance,” she said.

Longer job searches
According to data from the Employment Security Commission of North Carolina, the length of Merritt’s job search isn’t unusual. Residents of the Old North State spent an average of just over three months looking for work so far this year. Still, that’s better than the national average of 4.4 months reported by global outplacement firm Challenger Gray & Christmas.

“The biggest mistake job seekers make is being afraid and expecting results to happen to soon,” said Steve Mullinix, a psychologist specializing in job stress and career transition for HRC in Chapel Hill. “A lot of people feel, ‘What’s wrong with me?’ as their searches drag on. But remember, jobs are found largely through networking and making contact – and it takes a while to get momentum up.”

Active and open
County Commissioner Mike Nelson also is in the job market. He was working for a small, start-up nonprofit that launched just as the economy began to falter.

“Needless to say, it wasn’t an optimal time to ask for donations,” he said. Lack of funding led to his position’s elimination.

Nelson’s working his considerable network for leads on jobs that would utilize his communications, marketing, policy and management skills – whether in a nonprofit or commercial organization.
“I’m looking at this experience as an opportunity to explore options, and I’m open to a change in careers,” said the Hillsborough resident. “Perhaps that’s the silver lining. This could be just the opportunity I needed to explore new ventures.”

Bottom line
North Carolina is home to a handful of growth industries like biotechnology, clean technology, information technology, health care and alternative energy. And most of those do have a large presence in our neck of the woods, which means things may at least be better here than elsewhere.
That helps Nelson, for one, stay hopeful.

“Historically, the Triangle has been insulated and, once again, we might experience a ‘soft landing’ as opposed to the high unemployment some areas of the country are beginning to experience,” he said. “However, that doesn’t make the job search feel any easier or less stressful. Looking for a job in this economy is hard no matter where you live.”

CHATHAM CO. Labor Force Unemployed Unemployment Rate
September 2008 33,008 1,811 5.5%
September 2007 32,908 1,200 3.6%

ORANGE CO. Labor Force Unemployed Unemployment Rate
September 2008 67,714 2,869 4.2%
September 2007 67,925 2,018 3.0%

STATEWIDE. Labor Force Unemployed Unemployment Rate
September 2008 4.7 million 300,308 6.6%
September 2007 4.5 million 197,970 4.4%
Source: North Carolina Employment Security Commission

Editor’s Note: — This story is the first in a series about jobs and the local economy. If the recession has affected you or your business, please drop a line to margot@carrborocitizen.com and we might tell your story in an upcoming installment.

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