Rowan Countys roller-coaster unemployment rate took a nosedive in June, falling from
double-digits to less than 5 percent.The
countys June unemployment rate was 4.7 percent, down from Mays figure of 11.4
percent. No other county in the state registered such a significant drop.
In May, Rowans jobless rate hit its highest mark in
19 years, and Rowan had the second-highest unemployment rate among the states 100
counties.
Now, the state lists Rowan among 42 counties with
unemployment rates at 5 percent or below.
Karen Leonard, manager of the Employment Security
Commission office in Salisbury, said this morning that Rowans unemployment numbers
have been going up and down over the past nine months because of temporary layoffs.
From our best estimates, Leonard said,
the rate for May was highly influenced by temporary layoffs.
Large employers in Rowan County at times resort to
temporary layoffs, such as closing down for a week or putting their employees on short
time , reflecting a downturn in business.
The companies using such practices still consider the
people laid off as employees, but the workforce affected is technically unemployed
and counted as such by the Employment Security Commission. Traditionally, larger employers
such as Freightliner and Pillowtex make these kinds of adjustments.
When the Employment Security Commission did its employment
count for May, Leonard said, it apparently occurred during a time of considerable
temporary layoffs. Those laid off are allowed to file for unemployment compensation.
The Employment Security Commission makes its surveys close
to the 12th of each month.
In June, Rowan County apparently did not have as many
temporary layoffs, Leonard said. The high unemployment rate in May reflected both the
temporary layoffs and Rowan Countians who were permanently unemployed.
It can be somewhat skewed, Leonard said.
So what is Rowans true employment picture?
I think there are obviously some industries in the
county going through dramatic changes, said Bob Wright, president of the Rowan
County Chamber of Commerce. The textile industry is one.
Wright said the furniture industry, losing jobs to cheaper
foreign labor, could be the next sector hit hard locally.
The Employment Security Commission says counties in the
Piedmont region continue to experience considerable layoffs because of the areas
dominant position in manufacturing employment, especially textiles, furniture,
transportation, equipment, electrical and electronic equipment and apparel.
Many employers are doing fine, Wright said of
local Chamber members. Others are struggling with the softened economy.
In general, local businesses are being more careful about
their expenses, including hiring, Wright said. While he sees some cautious optimism for
the future, the economys recovery date seems to be pushed farther away.
Its not the same economy we had two years
ago, Wright noted.
The number of unemployed in Rowan County dropped from 8,430
in May to 3,250 in June.
Four out of the five counties touching Rowan also had
jobless rates that went down in June, but none as dramatically as Rowan County.
Unemployment rates decreased to 7.6 percent in Stanly
County, 4.8 percent in Iredell, 4.1 percent in Cabarrus and 3.8 percent in Davie.
The jobless rate in Davidson County increased from 4.6
percent in May to 6.0 percent in June.
The states unemployment rate for June was 5.1
percent, up from 5 percent a month earlier. Yancey County has the states highest
unemployment rate at 15 percent; Currituck County has the lowest, at 1.4 percent.
Contact Mark Wineka at 704-797-4263, or e-mail him at mwineka@salisburypost.com