N.C. loses 41,000 jobs, but unemployment rate barely moves

The unemployment rate in North Carolina inched up by only 0.1 percentage point in March, to 10.8 percent–the smallest jump in five months. But that figure could be deceiving, some analysts said Friday. Seasonally adjusted, total non-farm industry employment declined by 41,300 jobs during the month, points out John Quinterno of the Raleigh-based North Carolina Budget & Tax Center. That makes March the second worst month for job losses since the recession began in December 2007. The North Carolina Employment Security Commission, which reported the unemployemnt numbers Friday, said that the total number of jobless workers, 492,512, is at an all-time high. So, why the dramatic slowdown in what had been a soaring unemployment rate–one that was at 8.1 percent in December before jumping all the way to 10.7 percent in February? Analysts breaking down the March results say the overal rate may no longer be capturing "discouraged" workers–those no longer officially searching for employment and, therefore, no longer being counted as unemployed. "In February, we lost 25,000 jobs and the rate went up by a full percentage point," Quinterno says. "It just seems to me that more and more people are moving out of the labor force and are just not being counted." ESC documented the hardest hit sectors. During the month, professional and business services gave up 10,000 workers; construction, 8,500; and manufacturing, 9,200. The only sector to show a gain was government, which added 200 workers. The uptick was attributed to federal hiring. The ESC is scheduled to provide a county-by-county breakdown on the March jobless numbers April 24. "The ESC will continue to help those who are hurting during this difficult global and national economic crisis," said ESC Chairman Moses Carey Jr. "We continue to help those filing for benefits and looking for work. Those currently receiving benefits have begun receiving an additional $25 in their payments each week." Whether a person is counted as unemployed has nothing to do with whether he or she is receiving jobless benefits. Counted in the unemployment rate are people who are out of work, who say they are available for work and who have actively looked for a job in the past 30 days.