Economic Outlook Still Bleak

North Carolina continues to have a high unemployment rate with two-thirds of the counties in the state running into double digits. In western North Carolina, jobs are as scarce as hen’s teeth. For September, Cherokee County had an unemployment rate of 14.2 percent, exceeding all counties west of Asheville. Graham and Clay counties weren’t far behind with 13.4 percent and 10.8 percent ,respectively.
Most other counties west of Asheville were not much better, hovering in the mid 8 and low 9 percent range. Counties just east of Asheville seemed to fare as badly as Cherokee. Cleveland, Rutherford, McDowell, Burke and Caldwell counties all were in either the 14 or 15 percent unemployment range.
Unemployment benefits paid out in North Carolina last year (October 2008 through September 2009) were just shy of $4 billion. In many ways, whatever economy the state had was bolstered up significantly by unemployment benefits. For many families, that’s what put food on the table and clothed their kids, while the bread winner or bread winners were waiting for jobs.
In the fiscal year just cited, Cherokee County residents received almost $11.5 million in benefits; Graham County received $5.75 million in benefits and Clay County received $3.5 million in benefits.
A recent report on the state’s economic outlook commissioned by the North Carolina General Assembly states that the recession ended in August, even though current economic conditions show few signs o a recovery.
“Unfortunately, recession-like conditions may be with us the rest of the fiscal year,” the report reads.
Still, North Carolina appears to be faring better than many other states, where employment rates are still higher and there is a greater shortfall in the revenues for those states.
In North Carolina, nearly 270,000 jobs have been lost since the start of the recession with 230,000 of them lost since the financial crisis in October 2008.
According to a forecast by UNC-C’s economic forecasters, 6 of the state’s 10 non-agricultural industry sectors are expected to rebound in 2010 with wholesale and retail trade and services expected to lead the way.
While most economist agree that the recession has come to an end, a robust recovery is not on the foreseeable horizon.