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July 31, 2001
Salisbury Post; Rowan County, NC

Local News

Local unemployment rate drops

BY MARK WINEKA
SALISBURY POST



Rowan County’s roller-coaster unemployment rate took a nosedive in June, falling from double-digits to less than 5 percent.

The county’s June unemployment rate was 4.7 percent, down from May’s figure of 11.4 percent. No other county in the state registered such a significant drop.

In May, Rowan’s jobless rate hit its highest mark in 19 years, and Rowan had the second-highest unemployment rate among the state’s 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 Rowan’s 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 Rowan’s 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 area’s 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 economy’s recovery date seems to be pushed farther away.

“It’s 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 state’s unemployment rate for June was 5.1 percent, up from 5 percent a month earlier. Yancey County has the state’s 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 .

 

   

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