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Triangle still adding jobs, but more slowly
(News & Observer, The (Raleigh, NC) (KRT) Via Acquire Media NewsEdge) Apr. 26--The Triangle's jobless rate hit 4.2 percent in March, inching up for the third consecutive month as the nation's economy tilts toward recession.
The Triangle economy continues to expand, but unemployment is rising as local employers aren't creating enough new jobs to keep up with all the people moving here from other states in search of work.
Soaring energy costs and plummeting real estate prices are just two of the economic forces that have conspired to slow consumer spending and limit hiring nationwide.
Still, the Triangle, with heavy representation of universities, state government and international corporations, is faring better than rest of the state and the nation. The state posted a 5.2 percent jobless rate in March, while the national unemployment rate was 5.1 percent for the month.
"We're not creating jobs as fast as we were a year ago, but we're still seeing the same amount of people moving into the state and joining the labor force," said Mark Vitner, an economist with Wachovia in Charlotte.
The local jobless data were released Friday by the N.C. Employment Security Commission and seasonally adjusted by Wachovia.
This region continues to add new jobs, but at a third of the pace seen a year ago. The Raleigh area added 18,100 jobs in March, a 3.6 percent increase over a year ago. The Durham area added 6,600 jobs in March, up 2.3 percent.
The Triangle accounted for more than half the state's job creation in the past year, state records show. Statewide, employers added 45,600 jobs in March over 12 months.
Total statewide job creation between March 2007 and March 2008 was the lowest year-over-year gain in about five years. In the short term, economic growth locally is expected to continue slowing.
"I don't think we've hit bottom yet," N.C. State University economist Michael Walden said.
Still to be felt are the aftershocks of Durham software maker Motricity's decision to move to Washington state, eliminating 325 high-paid jobs here. Telecom giant AT&T said last week it would slash 4,650 managerial jobs nationwide, about 1.5 percent of its total work force. It's not clear how many of those positions would cut into the company's North Carolina work force of 8,400.
Real estate still OK
One reason the Triangle hasn't been battered by fallout from the national housing crisis is because the real estate bubble wasn't as dramatic here as it was in Florida and California. The Raleigh-Durham housing market is one of a handful of metropolitan areas nationwide to post a median price increase over last year.
Still, the area is not immune to the housing woes afflicting the rest of the nation. March sales of existing homes slumped 28 percent from a year earlier, a blow to the Triangle's traditionally robust spring home-selling market.
In all, 4.28 million people had jobs in the state last month; the ranks of the unemployed totaled 235,766.
The Raleigh metro area, which includes Cary, saw the greatest job growth in leisure and hospitality, adding 700 jobs. The manufacturing sector lost 100 jobs.
In the Durham area, the greatest job growth came in government, adding 700 positions. Manufacturers cut 100 jobs.
john.murawski@newsobserver.com or (919) 829-8932
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