In spite of all the good news related to the job market in the United States, with the economy recovering and the minimum wages increasing, there are still parts of the country where the situation has not improved much.
One of these states is North Carolina, where the unemployment rate was reported to be higher at the end of June. While it was up by only 0.1 percent compared to May, the fact that it has not decreased might be worrying.
June’s reports showed that the current unemployment rate is 5.8 percent, compared to 5.7 in May, according a statement released by the North Carolina Commerce Department on Tuesday, July 20.
What is most surprising is the fact that the unemployment rate has been higher every month for four months in a row. Moreover, it was also reported that this month it reached its highest point since September 2014.
It was also revealed that North Carolina had 3,100 fewer jobs in June compared to the previous month. However, private unemployment has flourished, as 4,700 jobs were added last month. Unfortunately, this could not make up for the 7,800 jobs from the government sector that the state lost.
The most prolific departments seem to be utilities and transportation, because they added 4,400 jobs last month. In contrast, those who are looking for jobs in hospitality, constructions, which are usually seasonal, are in for bad news. Apparently, these were the domains where most jobs were lost, according to senior economist Rick Kaglic, who works at the Federal Reserve Bank of Richmond.
Even if the numbers do not indicate the unemployment is about to go away anytime soon, Kaglic explains that the data in both North Carolina and South Carolina shapes an economy that will soon make room for many other jobs.
“Taken in conjunction with other indicators, it looks like business activity continues to increase, and that is creating this demand for labor,” he said.
Kaglic also warned people not to read too much into the data collected in only a couple of months because it is the general picture that matters.
Throughout the last year, 97,500 jobs were added in North Carolina. The total number of jobs added last year in the private sector was 106,000, while there were 8,500 fewer positions available in the government sector.
The situation in South Carolina already looks better. It was reported that the unemployment rate in this state decreased by 0.2 percent, from 6.8 percent in May to 6.6 percent in June.
According to the data recorded from all over the United States, the unemployment rate last month was 5.3 percent.
Image Source: conservativereason