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december 2006 nc today

I December 2006 NC Today

5.3

5.1

4.7 4.9

0.0

1.0

2.0

3.0

4.0

5.0

Oct. 2005 Nov. 2005 Oct. 2006 Nov. 2006

3,930.3

3,938.2

3,992.1

3,991.7

3,870.0

3,900.0

3,930.0

3,960.0

3,990.0

4,020.0

Oct. 2005 Nov. 2005 Oct. 2006 Nov. 2006

N o r t h C a r o l i n a ’ s N o v emb e r

unemployment rate, at 4.9 percent,

increased 0.2 of a percentage point

from the previous month’s 4.7

percent, and is 0.2 percentage points

lower than the 5.1 percent recorded a

year ago.

The number of nonfarm jobs

decreased by 400 from

October to November, while

gaining 53,500 jobs over the

year.

November Highlights

North Carolina Unemployment Rate

( Seasonally Adjusted)

Total Nonfarm Employment

( Seasonally Adjusted)

Source: Current Employment Statistics, LMI of ESC

2006 data are preliminary, while 2005 data are benchmarked.

+ 7.9

- 0.4

Source: Local Area Unemployment Statistics, LMI of ESC

2006 data are preliminary, while 2005 data are benchmarked.

( Numbers in Thousands)

December 2006 NC Today II

III December 2006 NC Today

North Carolina/ United States Civilian Labor Force Data ....................................................................................... 1

North Carolina/ United States Labor Force Comparison Change, November 2005 - November 2006 ..................................... 2

North Carolina/ United States Employment Comparison Change, November 2005 - November 2006 .................................... 3

North Carolina/ United States Unemployment Comparison Change, November 2005 - November 2006 ................................. 4

North Carolina/ United States Unemployment Rates Comparison Change, November 2005 - November 2006.......................... 5

Announced Business Closings and Permanent Layoffs, November 2006 ...................................................................... 6

Total Nonfarm Employment in North Carolina, November 2006............................................................................... 7

Total Nonfarm Employment in North Carolina, November 2005 - November 2006 ......................................................... 8

Total Nonfarm Employment Change in North Carolina, October 2006 - November 2006 .................................................. 9

North Carolina Sector Employment as Percentage of Total Employment, November 2006 .............................................. 10

Employment Change by Major Industries, November 2005 - November 2006 .............................................................. 11

Total Manufacturing Employment in North Carolina, November 2005 - November 2006 ................................................. 12

Manufacturing Employment in North Carolina Durable & Non Durable Goods Comparison, November 2001 - November 2006 ..... 13

Employment Change in Manufacturing Industries, November 2005 - November 2006..................................................... 14

North Carolina Manufacturing Industries, November 2001 Compared to November 2006 ................................................ 15

United States Manufacturing Industries, November 2001 Compared to November 2006.................................................. 16

North Carolina Manufacturing, November 2005 - November 2006 ........................................................................... 17

Compensation Per Hours Worked, South Atlantic Region, 3rd Quarter 2006 ............................................................... 18

Total Service Providing Employment in North Carolina, November 2005 - November 2006.............................................. 19

North Carolina Private Service Providing Industries, November 2001 Compared to November 2006 ................................... 20

United States Private Service Providing Industries, November 2001 Compared to November 2006..................................... 21

Employment Change in North Carolina’s Private Service Providing Industries, November 2005 - November 2006 ................... 22

Unemployment Insurance Benefits Paid, November 2005 - November 2006................................................................ 23

October 2006 Trust Fund Activities ............................................................................................................... 23

North Carolina Economic Indicators, October 2006 ............................................................................................ 24

North Carolina Economic Barometers, October 2006 .......................................................................................... 25

Attachments.................................................................................................................... ..................... 26

Table Of Contents

December 2006 NC Today IV

1 December 2006 NC Today

North Carolina Civilian Labor Force Data

Note: Numbers may not add due to rounding. 2006 data are preliminary while other data are benchmarked.

• North Carolina’s seasonally adjusted civilian labor force continued to climb 0.6 of a percent from October 2006 as a result of gains in

employment and unemployment. The unemployment rate rose to 4.9 percent from 4.7 percent.

• Seasonally adjusted, the United States civilian labor force gained 0.3 of a percent from October 2006. Both employment and unemployment

posted increases. The unemployment rate inched up to 4.5 percent.

Note: Numbers may not add due to rounding. 2006 data are preliminary, while other data are benchmarked.

Source: Bureau of Labor Statistics, US Department of Labor

United States Civilian Labor Force Data

November

2006

October

2006

November

2005

January

2001

Month Ago Year Ago

North Carolina

Numeric

Change

Percent

Change

Numeric

Change

Percent

Change

( Model Based Data)

Seasonally Adjusted

Labor Force 4,501,425 4,476,259 4,370,484 4,150,295 25,166 0.6 130,941 3.0

Employment 4,279,400 4,266,502 4,145,576 3,965,955 12,898 0.3 133,824 3.2

Unemployment 222,025 209,757 224,908 184,340 12,268 5.8 - 2,883 - 1.3

Unemployment Rate 4.9 4.7 5.1 4.4 0.2 xxx - 0.2 xxx

Not Seasonally Adjusted

Labor Force 4,504,017 4,487,305 4,378,457 4,163,377 16,712 0.4 125,560 2.9

Employment 4,284,964 4,286,659 4,159,522 3,959,708 - 1,695 0.0 125,442 3.0

Unemployment 219,053 200,646 218,935 203,669 18,407 9.2 118 0.1

Unemployment Rate 4.9 4.5 5.0 4.9 0.4 xxx - 0.1 xxx

November

2006

October

2006

November

2005

January

2001

Month Ago Year Ago

United States

Numeric

Change

Percent

Change

Numeric

Change

Percent

( CPS Data) Change

Seasonally Adjusted

Labor Force 152,381,000 151,998,000 150,183,000 143,800,000 383,000 0.25 2,198,000 1.46

Employment 145,564,000 145,287,000 142,611,000 137,778,000 277,000 0.19 2,953,000 2.07

Unemployment 6,817,000 6,711,000 7,572,000 6,023,000 106,000 1.58 - 755,000 - 9.97

Unemployment Rate 4.5 4.4 5.0 4.2 0.1 xxx - 0.5 xxx

Not Seasonally Adjusted

Labor Force 152,590,000 152,397,000 150,239,000 142,828,000 193,000 0.13 2,351,000 1.56

Employment 146,014,000 146,125,000 142,968,000 136,181,000 - 111,000 - 0.08 3,046,000 2.13

Unemployment 6,576,000 6,272,000 7,271,000 6,647,000 304,000 4.85 - 695,000 - 9.56

Unemployment Rate 4.3 4.1 4.8 4.7 0.2 xxx - 0.5 xxx

December 2006 NC Today 2

2006

151,698,000

150,991,000

152,381,000

151,998,000

151,799,000

151,534,000

151,321,000

150,811,000

150,652,000

150,449,000

150,114,000

150,183,000

150,153,000

149,500,000

150,000,000

150,500,000

151,000,000

151,500,000

152,000,000

152,500,000

US

4,403,553

4,476,259

4,466,723

4,443,773

4,429,530

4,394,216

4,396,045

4,378,767

4,374,036

4,362,082

4,369,451

4,370,484

4,501,425

4,320,000

4,340,000

4,360,000

4,380,000

4,400,000

4,420,000

4,440,000

4,460,000

4,480,000

4,500,000

4,520,000

NC

Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov.

2005

Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov.

2005 2006

North Carolina/ United States Labor Force

Comparison Change

November 2005 – November 2006

( Seasonally Adjusted)

• Over the year, the state’s labor force has risen by 3.0 percent, double that of the nation ( 1.5%). Since November 2001, North Carolina’s labor

force grew 7.7 percent, while the United States’ climbed 5.6 percent.

• After holding steady at 66.5 percent for two months, North Carolina’s labor force participation rate rose to 66.8 percent, the highest it has

been since June 2003. The United States’ rate increased slightly from 66.2 to 66.3 percent.

• According to the Current Population Survey ( CPS), the percentage of North Carolinians not in the labor force declined 1.3 percent, not

seasonally adjusted. Nationally, this pool of individuals remained unchanged over the month.

Source: Local Area Unemployment Statistics, LMI of ESC

Percentages are rounded. 2006 data are preliminary, while 2005 data are benchmarked.

3 December 2006 NC Today

4,145,576

4,145,625

4,172,633

4,171,687

4,183,531

4,206,219

4,198,910

4,193,971

4,215,526

4,230,342

4,249,229

4,266,502

4,279,400

4,100,000

4,120,000

4,140,000

4,160,000

4,180,000

4,200,000

4,220,000

4,240,000

4,260,000

4,280,000

4,300,000

NC

145,564,000

145,287,000

144,850,000

144,579,000

144,329,000

144,363,000

143,976,000

143,688,000

143,641,000

143,257,000

143,074,000

142,779,000

142,611,000

142,500,000

143,000,000

143,500,000

144,000,000

144,500,000

145,000,000

145,500,000

146,000,000

US

Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov.

2006

Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov.

2005

2005

• North Carolina’s seasonally adjusted employment continues to grow with a 0.3 of a percent increase from October 2006. United States’

employment also increased, but at a slightly lower 0.2 of a percent.

• Over the year, employment has risen more, percentagewise, in the state ( 3.2%) than nationally ( 2.1%). Since November 2001, the trend

continued at 9.7 percent compared to 6.8 percent.

• According to the CPS, full- time employment declined across the state by 2.4 percent over the month, while part- time employment gained 14.4

percent. Nationally, full- time employment decreased 0.6 of a percent, while part- time increased 2.3 percent.

• North Carolina’s employment- to- population ratio increased slightly to 63.5 percent. The United States’ rate remained steady for a second

consecutive month at 63.3 percent.

North Carolina/ United States Employment

Comparison Change

November 2005 – November 2006

( Seasonally Adjusted)

Source: Local Area Unemployment Statistics, LMI of ESC

Percentages are rounded. 2006 data are preliminary, while 2005 data are benchmarked.

2006

December 2006 NC Today 4

209,757

217,494

213,431

214,004

200,245

204,643

189,826

195,236

202,349

189,449

223,826

224,908

222,025

185,000

190,000

195,000

200,000

205,000

210,000

215,000

220,000

225,000

230,000

235,000

240,000

NC

Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov.

Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov.

2005 2006

Source: Local Area Unemployment Statistics, LMI of ESC

2006 data are preliminary, while 2005 data are benchmarked.

• Statewide, seasonally adjusted unemployment increased 5.8 percent over the month as reflected by gains in CPS unemployment and

unemployment insurance claims. Unemployment rose nationally by 1.6 percent.

• Since November 2005, unemployment declined 1.3 percent statewide and 10.0 percent nationally. Over the last five years, unemployment has

dropped 20.4 percent in North Carolina and 14.8 percent in the United States.

• Over the month, the percentage of job losers and entrants to the labor force increased nationally and statewide, while job leavers declined in

both areas.

North Carolina/ United States Unemployment

Comparison Change

November 2005 – November 2006

( Seasonally Adjusted)

2005 2006

7,572,000

7,375,000

7,040,000

7,193,000

7,011,000

7,123,000

7,015,000

6,957,000

7,205,000

7,119,000

6,949,000

6,711,000

6,817,000

6,650,000

6,750,000

6,850,000

6,950,000

7,050,000

7,150,000

7,250,000

7,350,000

7,450,000

7,550,000

US

5 December 2006 NC Today

6.2

5.3 4.9

4.8

4.7

4.8 4.9

4.6 4.6

4.3

4.6 4.5

4.3

5.1 5.1

6.5

6.7

5.4

4.5

5.9

4.4

4.7 4.6

4.8

4.7 4.8 4.7 4.7 4.6 4.6

5.0 4.9

5.9

5.5

4.0

4.5

5.0

5.5

6.0

6.5

7.0

Nov.

01

Nov.

02

Nov.

03

Nov.

04

Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov.

NC US

Source: Local Area Unemployment Statistics, LMI of ESC

Note: 2006 data are preliminary, while 2005 data are benchmarked.

• North Carolina’s 4.9 percent seasonally adjusted unemployment rate matches its highest 2006 estimate reached in September. The seasonally

adjusted United States’ unemployment rate increased slightly to 4.5 percent, 0.1 of a percentage point above its lowest 2006 level set last

month.

• With the 0.2 percentage point over- the- month gain, the state’s unemployment rate is 0.4 of a percentage point above the United States’ rate.

• Since November 2005, North Carolina’s unemployment rate has decreased 0.2 of a percentage point and declined 1.8 percentage points over

the last five years. Nationally, the unemployment rate is down 0.5 of a percentage point over the year, and 1.0 percentage point since

November 2001.

Month North Carolina Change United States Change

November 2005 5.1 - 0.2 5.0 0.1

December 5.1 0.0 4.9 - 0.1

January 2006 4.3 - 0.8 4.7 - 0.2

February 4.6 0.3 4.8 0.1

March 4.5 - 0.1 4.7 - 0.1

April 4.3 - 0.2 4.7 0.0

May 4.6 0.3 4.6 - 0.1

June 4.6 0.0 4.6 0.0

July 4.8 0.2 4.8 0.2

August 4.8 0.0 4.7 - 0.1

September 4.9 0.1 4.6 - 0.1

October 4.7 - 0.2 4.4 - 0.2

November 2006 4.9 0.2 4.5 0.1

Sources: NC: Local Area Unemployment Statistics, LMI of ESC

US: Bureau of Labor Statistics, US Department of Labor

2006 data are preliminary while previous years’ data are benchmarked.

North Carolina/ United States Unemployment Rates

Comparison Change

November 2005 – November 2006

( Seasonally Adjusted)

2005

Prior Years

2006

December 2006 NC Today 6

Industry

Number of

Establishments

Number

Affected

Manufacturing 9 1,110

Retail Trade 20 64

Transportation & Warehousing 1 31

Information 1 7

Finance & Insurance 1 10

Professional, Scientific & Technical Services 1 20

Administration & Support, Waste Management & Remediation Services 3 Unknown

Arts, Entertainment & Recreation 1 25

Accommodation & Food Services 5 35

Other Services 1 Unknown

Public Administration 3 12

Announced Business Closings

And Permanent Layoffs

November 2006

Source: LMI of ESC

• Although Manufacturing has been one of the industries most affected by significant job losses to date, November experienced a drop in the

number of these job losses over the previous month.

7 December 2006 NC Today

Manufacturing 13.8%

Trade, Transportation

& Utilities 18.4%

Information 2.0%

Financial Activities

5.2%

Professional &

Business Services

11.5%

Educational & Health

Services 12.1%

Leisure & Hospitality

Services 9.3%

Government 17.0%

Other*

4.6% Construction 6.1%

( Numbers in Thousands)

Total Nonfarm Employment in North Carolina

November 2006

( Seasonally Adjusted)

Change

NAICS Industry NovemberP OctoberR NovemberB October 2006 to November 2006

2006 2006 2005 Net Percent

Total Nonfarm 3,991.7 3,992.1 3,938.2 - 0.4 0.0

Construction 243.9 244.3 233.6 - 0.4 - 0.2

Manufacturing 550.4 552.1 563.9 - 1.7 - 0.3

Trade, Transportation & Utilities 735.3 735.5 733.4 - 0.2 0.0

Information 78.1 77.6 77.3 0.5 0.6

Professional & Business Services 458.4 457.9 448.5 0.5 0.1

Educational & Health Services 483.5 483.3 469.1 0.2 0.0

Leisure & Hospitality Services 370.5 366.0 362.7 4.5 1.2

Government 679.1 680.5 668.6 - 1.4 - 0.2

Financial Activities 208.0 207.5 200.5 0.5 0.2

* Other includes Natural Resources, Mining and Other Services.

P Preliminary; R Revised; B Benchmarked

Source: Current Employment Statistics, LMI of ESC

• Seasonally adjusted, total nonfarm employment decreased by 400 jobs over the month, but has gained 53,500 jobs over the year.

• Leisure and Hospitality reported the largest net ( 4,500) over- the- month gain.

• Educational and Health Services had the largest net ( 14,400) over- the- year increase.

December 2006 NC Today 8

Total Nonfarm Employment in North Carolina

November 2005 – November 2006

( Not Seasonally Adjusted)

• The November 2006 employment level of 4,030,300 was 53,300 ( 1.3%) higher than last November.

• The U. S. November 2005 to November 2006 employment increase was 1.3 percent.

• The United States has had a 4.0 percent employment increase from November 2001 to November 2006. North Carolina has had a 3.9 percent

employment increase over the same period.

The following table depicts North Carolina Total nonfarm employment since November 2001:

Year Employment

November 2001 3,878,500

November 2002 3,853,800

November 2003 3,818,600

November 2004 3,901,700

November 2005 3,977,000

November 2006 4,030,300

( Numbers in Thousands)

Source: Current Employment Statistics, LMI of ESC

November 2006 data are preliminary. Earlier 2006 data are revised and 2005 data are benchmarked.

2005 2006

3,977.0

3,971.2

3,898.5

3,917.4

3,949.8

3,979.3

4,005.7

3,996.4

3,938.2

3,992.4

4,020.1

4,025.6

4,030.3

3,800.0

3,840.0

3,880.0

3,920.0

3,960.0

4,000.0

4,040.0

Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov.

9 December 2006 NC Today

245.6

245.2

552.7

550.7

739.1

748.1

77.7

78.5

207.8

207.3

462.2

460.7

486.7

487.9

367.8

363.7

698.3

701.3

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

Construction

Manufacturing

Trade,

Transportation &

Utilities

Information

Financial Activities

Professional &

Business Services

Educational &

Health Services

Leisure &

Hospitality Services

Government

October November

Source: Current Employment Statistics, LMI of ESC

November 2006 data are preliminary while October 2006 data are revised.

Total Nonfarm Employment Change

In North Carolina

October 2006 to November 2006

( Not Seasonally Adjusted)

• Trade, Transportation & Utilities had the largest net ( 9,000) over- the- month employment gain.

( Numbers in Thousands)

- 0.4

+ 3.0

- 4.1

+ 1.2

- 1.5

+ 0.8

+ 9.0

- 2.0

- 0.5

December 2006 NC Today 10

North Carolina Sector Employment

As Percentage of Total Employment

November 2006

( Not Seasonally Adjusted)

Total Nonfarm Employment 4,030,300

• Government is the largest employing group with 17.4 percent of total nonfarm employment.

• Combining Wholesale Trade and Retail Trade makes Trade the second largest employing group with 15.4 percent of total nonfarm employment.

Source: Current Employment Statistics, LMI of ESC

November data are preliminary.

Natural Resources &

Mining 0.2%

Construction 6.1%

Manufacturing 13.7%

Wholesale Trade 4.2%

Retail Trade 11.2%

Financial Activities 5.1%

Information 1.9%

Transportation, Warehouse

& Utilities 3.2%

Professional & Business

Services 11.4%

Educational & Health

Services 12.1%

Leisure & Hospitality

Services 9.0%

Other Services 4.5%

Government 17.4%

11 December 2006 NC Today

( Numbers in Thousands)

Employment Change by Major Industries

November 2005 – November 2006

( Not Seasonally Adjusted)

• Educational and Health Services had the largest net over- the- year increase, gaining 14,400 ( 3.0%) jobs.

• The major over- the- year decrease was in Manufacturing ( 13,500 or 2.4%).

Source: Current Employment Statistics, LMI of ESC

November 2006 data are preliminary, while 2005 data are benchmarked.

( Employment in Thousands)

+ 10.2

+ 14.4

+ 10.8

+ 0.8

+ 8.1

- 13.5

+ 9.6

- 0.6

+ 2.4

+ 7.5

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

550.0

600.0

650.0

700.0

750.0

Construction

Ed. & Health Services

Government

Information

Leisure & Hospitality Services

Manufacturing

Prof. & Business Services

Trans., Warehouse & Utilities

Trade

Financial Activities

2006 2005

December 2006 NC Today 12

( Numbers in Thousands)

2005 2006

Source: Current Employment Statistics, LMI of ESC

November 2006 data are preliminary. Earlier 2006 data are revised, while 2005 data are benchmarked.

• Not seasonally adjusted manufacturing employment declined 2.4 percent or 13,500 jobs from November 2005.

• The United States had a 0.4 percent decrease in manufacturing employment over the year.

The following table depicts North Carolina’s manufacturing employment since November 2001:

Year Manufacturing Employment

November 2001 672,700

November 2002 632,800

November 2003 581,400

November 2004 576,000

November 2005 564,200

November 2006 550,700

Total Manufacturing Employment in North Carolina

November 2005 – November 2006

( Not Seasonally Adjusted)

564.2

565.4

559.4

559.6

561.3

561.9

561.3

563.5

559.4

560.7

557.9

552.7

550.7

546

548

550

552

554

556

558

560

562

564

566

Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov.

13 December 2006 NC Today

334.4

338.3

310.4

322.4

291.7

289.7

297.6

278.4

294.1

270.1

292.4

258.3

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

2001 2002 2003 2004 2005 2006

Durable Goods Non Durable Goods

Total

632,800

Total

550,700

Total

672,700

Total

581,400

Total

576,000

Total

564,200

49.71% 49.05%

50.17% 51.67% 52.13% 53.10%

50.29%

50.95%

49.83% 48.33% 47.87% 46.90%

Manufacturing Employment in North Carolina

Durable & Non Durable Goods Comparison

November 2001 through November 2006

( Not Seasonally Adjusted)

Source: Current Employment Statistics, LMI of ESC

November 2006 data are preliminary, while other data are benchmarked.

• Although durable goods have decreased in employment over the past two years, their percentage of the manufacturing employment continues

to increase.

• Durable Goods include: Wood Product, Nonmetallic Mineral, Fabricated Metal Product, Machinery, Computer & Electronic Product, Electrical

Equipment & Appliance, Transportation Equipment, and Furniture and Related Product.

• Non Durable Goods include: Food, Beverage and Tobacco Product, Textiles, Apparel, Printing and Related Products, Chemicals, and Plastics

and Rubber.

December 2006 NC Today 14

• The Textile industry – combining Textile Mills and Textile Product Mills – comprises the largest number of manufacturing jobs in North Carolina

( 56,800), but also had the largest over- the- year employment decline ( 7,700).

• The largest net over- the- year manufacturing increase was in Transportation Equipment ( 1,900 or 5.1%).

• Other manufacturing industries with over- the- year increases: Computer and Electronic Product, 800; Food Manufacturing, 700; Fabricated

Metal Product, 600; Machinery, 200; and Electrical Equipment & Appliance, 100.

Source: Current Employment Statistics, LMI of ESC

November 2006 data are preliminary, while 2005 data are benchmarked.

Employment Change in Manufacturing Industries

November 2005 – November 2006

( Not Seasonally Adjusted)

( Employment in Thousands)

Total Manufacturing: 550,700

- 0.2

+ 0.6

+ 0.2

+ 0.8

+ 0.1

+ 1.9

- 3.5

+ 0.7

- 1.2

- 7.7

- 2.6

- 0.4

0.0

- 1.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Wood Product

Fabricated Metal Prod.

Machinery

Comp. & Electronic Prod.

Elect. Equip. & App.

Transp. Equip.

Furniture & Rel. Prod.

Food

Bev. & Tobacco Prod.

Textiles

Apparel Manf.

Printing

Chemical

Plastics & Rubber

Nov- 05 Nov- 06

15 December 2006 NC Today

Textiles 10.3%

Beverage & Tobacco

Product

2.6%

Food

9.3%

Printing 2.6%

Apparel Mfg. 3.7%

Chemical 7.9%

Plastics & Rubber

5.7%

All Other

11.8%

Wood Product

4.9%

Fabricated Metal

Product

7.6%

Furniture & Rel.

Product

9.2%

Transportation Equip.

7.0%

Electrical Equip. &

Appliance

4.5%

Computer & Electronic

Product

7.2%

Machinery

5.7%

Transportation Equip.

5.0%

Electrical Equip. &

Appliance 5.2%

Computer & Electronic

Product 7.6%

Machinery 5.1%

Fabricated Metal

Product 6.0%

Wood Product 4.0%

All Other

10.1%

Plastics & Rubber 5.5%

Chemical 7.1%

Printing 2.5%

Furniture & Rel. Product

10.4%

Beverage & Tobacco Food 7.9%

Product 2.9%

Textiles 15.2%

Apparel Mfg. 5.5%

Source: Current Employment Statistics, LMI of ESC

2006 data are preliminary, while 2001 data are benchmarked.

2006

Total: 550,700

• North Carolina has lost 18.1 percent of its manufacturing jobs since November 2001.

• Transportation Equipment ( 4,900), Fabricated Metal Product ( 1,800), and Pharmaceutical and Medicine ( 1,300), within Chemical

Manufacturing, were the only manufacturing industries with employment increases over the five- year period.

North Carolina Manufacturing Industries

November 2001 Compared to November 2006

( Not Seasonally Adjusted)

2001

Total: 672,700

December 2006 NC Today 16

Plastics & Rubber 5.5%

All Other 15.8%

Wood Product 3.6%

Fabricated Metal Product

10.1%

Machinery 8.1%

Computer & Electronic

Product 10.3%

Electrical Equip. &

Appliance 3.3%

Transportation Equip.

11.9%

Chemical 6.0%

Printing 4.7%

Food 9.8%

Textiles 3.2%

Beverage & Tobacco

Product 1.3%

Apparel Mfg. 2.5% Furniture & Rel. Product

3.9%

Machinery 8.5%

Computer & Electronic

Product 9.4%

Electrical Equip. &

Appliance 3.1%

Transportation Equip.

12.4%

Furniture & Rel.

Product 3.8%

Beverage & Tobacco Food 10.5%

Product 1.4%

Textiles 2.5%

Fabricated Metal

Product 11.0%

Wood Product 3.7%

All Other 15.7%

Plastics & Rubber 5.5%

Chemical 6.3%

Printing 4.5%

Apparel Mfg. 1.7%

2001

Total: 15,847,000

2006

Total: 14,175,000

Source: Bureau of Labor Statistics

2006 data are preliminary, while 2001 data are benchmarked.

• Manufacturing employment in the United States has decreased by 10.6 percent since November 2001.

• All major manufacturing industries in the United States have lost jobs during that same period.

United States Manufacturing Industries

November 2001 Compared to November 2006

( Not Seasonally Adjusted)

17 December 2006 NC Today

North Carolina Manufacturing

November 2005 – November 2006

( Not Seasonally Adjusted)

Average

Weekly Hours

Average

Hourly Earnings

Average

Weekly Earnings

November 2005 40.7 $ 14.58 $ 593.41

December 39.6 $ 14.59 $ 577.76

January 2006 39.8 $ 14.45 $ 575.11

February 39.2 $ 14.32 $ 561.34

March 39.6 $ 14.30 $ 566.28

April 39.0 $ 14.47 $ 564.33

May 39.8 $ 14.44 $ 574.71

June 39.7 $ 14.48 $ 574.86

July 38.9 $ 14.52 $ 564.83

August 39.9 $ 14.52 $ 579.35

September 40.5 $ 14.71 $ 595.76

October 40.9 $ 14.77 $ 604.09

November 2006 41.2 $ 14.78 $ 608.94

• Over the month, Manufacturing average hourly earnings increased by $ 0.01, average weekly earnings increased by $ 4.85, and average weekly

hours increased by 0.3 ( 18 minutes).

• Over the month, Durable Goods average hourly earnings increased by $ 0.15, average weekly earnings increased by $ 9.51, and average weekly

hours increased by 0.2 ( 12 minutes).

• Over the month, Nondurable Goods average hourly earnings decreased by $ 0.14, average weekly earnings decreased by $ 1.17, and average

weekly hours increased by 0.3 ( 18 minutes).

• Durable Goods include: Wood, Nonmetallic Mineral, Fabricated Metal, Machinery, Computer and Electronic Products, Transportation

Equipment and Furniture.

• Nondurable Goods include: Food, Beverage, Tobacco, Textiles, Apparel, Paper, Printing, Chemicals, Plastics and Rubber.

Source: Current Employment Statistics, LMI of ESC

Data not adjusted for inflation and refers to production workers only.

November 2006 data are preliminary, while earlier 2006 data are revised and 2005 data are benchmarked.

December 2006 NC Today 18

Note: May not sum due to rounding. Not adjusted for inflation.

South Atlantic Region includes: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia.

Source: Bureau of Labor Statistics, Employer Cost for Employee Compensation.

Compensation Per Hours Worked

South Atlantic Region

3rd Quarter 2006

Total Compensation: $ 24.04

• The South Atlantic Region’s Total Compensation of $ 24.04 is $ 3.27 below the national average of $ 27.31 per hour worked.

• Wages & Salaries reported during 3rd Quarter 2006 comprise 72.7 percent of Total Compensation.

• Insurance ($ 1.68), Paid Leave ($ 1.55) and Legally Required Benefits ($ 1.99) have increased more than any other benefits provided by employers

since 3rd Quarter 2004. Employers now pay a combined $ 0.55 cents more for these benefits than they did two years ago.

• However, Insurance alone added $ 0.21, comprising 9.6 percent of Wages & Salaries, followed by Paid Leave, which added $ 0.18 and comprised

8.9 percent of Wages & Salaries.

• Within Insurance, Health ($ 1.55) increased $ 0.20 since 3rd Quarter 2004, while Life, Short- and Long- Term Insurance combined rose only $ 0.02.

• Legally Required Benefits ($ 1.99) — while the most expensive benefit in the South Atlantic Region, comprising 8.3 percent of Total

Compensation — are lower than the national average of $ 2.18. Within Legally Required Benefits, Social Security added $ 0.09; Medicare, $ 0.03;

Workers’ Compensation, $ 0.03; and State Unemployment Insurance, $ 0.01, while Federal Unemployment Insurance was unchanged.

• An increase from 3rd Quarter 2004 of $ 0.09 was reported in Retirement & Savings and $ 0.05 in Supplemental Pay.

September 2006 September 2004 Change

Cost Percent Cost Percent Cost Percent

Total Compensation $ 24.04 100.0% $ 21.69 100.0% $ 2.35 10.8%

Wages and Salaries $ 17.47 72.6% $ 15.79 72.8% $ 1.68 10.6%

Total Benefits $ 6.58 27.4% $ 5.90 27.2% $ 0.68 11.5%

Paid Leave $ 1.55 6.5% $ 1.37 6.3% $ 0.18 13.1%

Vacation $ 0.79 3.3% $ 0.68 3.2% $ 0.11 16.2%

Holiday $ 0.51 2.1% $ 0.47 2.1% $ 0.04 8.5%

Sick $ 0.18 0.8% $ 0.16 0.7% $ 0.02 12.5%

Other $ 0.06 0.3% $ 0.06 0.3% $ 0.00 0.0%

Supplemental Pay $ 0.57 2.4% $ 0.52 2.4% $ 0.05 9.6%

Overtime and Premium $ 0.23 1.0% $ 0.22 1.0% $ 0.01 4.5%

Shift Differentials $ 0.05 0.2% $ 0.05 0.2% $ 0.00 0.0%

Nonproduction Bonuses $ 0.29 1.2% $ 0.25 1.2% $ 0.04 16.0%

Insurance $ 1.68 7.0% $ 1.47 6.8% $ 0.21 14.3%

Life $ 0.04 0.2% $ 0.04 0.2% $ 0.00 0.0%

Health $ 1.55 6.4% $ 1.35 6.2% $ 0.20 14.8%

Short- term Disablity $ 0.05 0.2% $ 0.04 0.2% $ 0.01 25.0%

Long- term Disablitiy $ 0.04 0.2% $ 0.03 0.2% $ 0.01 33.3%

Retirement and Savings $ 0.78 3.3% $ 0.69 3.2% $ 0.09 13.0%

Defined Benefit $ 0.34 1.4% $ 0.29 1.3% $ 0.05 17.2%

Defined Contribution $ 0.44 1.8% $ 0.40 1.8% $ 0.04 10.0%

Legally Required Benefits $ 1.99 8.3% $ 1.83 8.5% $ 0.16 8.7%

Social Security and Medicare $ 1.44 6.0% $ 1.32 6.1% $ 0.12 9.1%

Social Security $ 1.15 4.8% $ 1.06 4.9% $ 0.09 8.5%

Medicare $ 0.29 1.2% $ 0.26 1.2% $ 0.03 11.5%

Federal Unemployment Insurance $ 0.03 0.1% $ 0.03 0.2% $ 0.00 0.0%

State Unemployment Insurance $ 0.10 0.4% $ 0.09 0.4% $ 0.01 11.1%

Workers’ Compensation $ 0.42 1.7% $ 0.39 1.8% $ 0.03 7.7%

19 December 2006 NC Today

2005 2006

( Numbers in Thousands)

• Over the year, the Service Providing sector increased by 1.8 percent or 56,800 jobs. For the United States, the Service Providing sector has

increased 1.6 percent since November 2005.

The following table depicts North Carolina’s Service Providing employment since November 2001:

Year Employment

November 2001 2,972,900

November 2002 2,998,800

November 2003 3,016,200

November 2004 3,094,900

November 2005 3,170,900

November 2006 3,227,700

Source: Current Employment Statistics, LMI of ESC

Total Service Providing Employment

In North Carolina

November 2005 – November 2006

( Not Seasonally Adjusted)

3,170.9

3,163.6

3,102.3

3,120.5

3,147.3

3,172.2

3,196.2

3,181.8

3,127.7

3,179.4

3,210.2

3,220.6

3,227.7

3,020.0

3,040.0

3,060.0

3,080.0

3,100.0

3,120.0

3,140.0

3,160.0

3,180.0

3,200.0

3,220.0

3,240.0

Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov.

December 2006 NC Today 20

Leisure & Hospitality

Services 13.7%

Educational & Health

Services 17.7%

Professional &

Business Services

Financial Activities

8.1%

Information 3.5%

Retail Trade 19.5%

Warehouse &

Utilities 5.6%

Wholesale Trade

7.0%

Other Services 7.1%

Leisure & Hospitality

Services 14.4%

Other Services 7.3%

Transportation,

Warehouse & Utilities

5.0%

Wholesale Trade 6.7%

Retail Trade 17.8%

Financial Activities

8.2%

Information 3.1%

Professional & Business

Services 18.2%

Educational & Health

Services 19.3%

2001

Source: Current Employment Statistics, LMI of ESC

2006 data are preliminary, while 2001 data are benchmarked.

2006

Total: 2,526,400

Total: 2,312,000

• Educational and Health Services is the largest Private Service Providing sector with 19.3 percent of the total.

North Carolina Private Service Providing Industries

November 2001 Compared to November 2006

( Not Seasonally Adjusted)

21 December 2006 NC Today

Leisure & Hospitality

Services 13.5%

Educational & Health

Services 18.5%

Professional & Business

Services 18.6%

Financial Activities 9.0%

Information 4.1%

Retail Trade 17.9%

Transportation,

Warehouse & Utilities

5.6%

Wholesale Trade 6.6%

Other Services, 6.2%

Educational & Health

Services 19.7%

Professional & Business

Services 19.1%

Information 3.3%

Financial Activities 9.1%

Retail Trade 17.0%

Wholesale Trade 6.4%

Transportation,

Warehouse & Utilities

Other Services 5.9% 5.5%

Leisure & Hospitality

Services 14.0%

United States Private Service Providing Industries

November 2001 Compared to November 2006

( Not Seasonally Adjusted)

2001

Total: 86,813,000

2006

Total: 92,061,000

• Educational and Health Services is the largest Private Service Providing sector in the United States with 19.7 percent of the total.

Source: Bureau of Labor Statistics

2006 data are preliminary, while 2001 data are benchmarked.

December 2006 NC Today 22

Government is excluded in graph.

2006 data are preliminary, while 2005 data are benchmarked.

Source: Current Employment Statistics, LMI of ESC

• Educational and Health Services had the largest over- the- year increase ( 14,400 jobs or 3.0%) with Ambulatory Health accounting for 4,700 of

the jobs.

Employment Change in North Carolina’s

Private Service Providing Industries

November 2005 – November 2006

( Not Seasonally Adjusted)

( Employment in Thousands)

Total: 2,526,400

- 0.6

+ 2.0

+ 0.4

+ 0.8

+ 7.5

+ 9.6

+ 14.4

+ 8.1

+ 3.8

0.0

100.0

200.0

300.0

400.0

500.0

Transp., Whse. &

Utilities

Wholesale Trade

Retail Trade

Information

Financial Activities

Prof. & Business

Services

Educational &

Health Services

Leisure &

Hospitality

Services

Other Services

2005 2006

23 December 2006 NC Today

$ 68,862,085

$ 70,592,830

$ 87,627,937

$ 71,549,362

$ 71,712,399

$ 58,403,637

$ 72,775,063

$ 64,598,717

$ 65,689,787

$ 72,319,172

$ 62,434,371

$ 66,349,279

$ 69,104,612

$ 0

$ 10,000,000

$ 20,000,000

$ 30,000,000

$ 40,000,000

$ 50,000,000

$ 60,000,000

$ 70,000,000

$ 80,000,000

$ 90,000,000

Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov.

2005 2006

UI Activities As of 11/ 30/ 2006

UI Trust Fund Balance: $ 235,572,358

Federal Loan Balance: $ 0.00

Tax Anticipation Note Payback Balance: $ 0.00

State Reserve Balance: $ 33,900,289

Taxes Collected $ 131,804,922

Interest Received - Trust Fund $ 0.00

UI Benefits Paid $ 69,104,612

Unemployment Insurance Benefits Paid

November 2005 – November 2006

Source: Employment Services and Unemployment Insurance Reporting, LMI of ESC

November 2006 Trust Fund Activities

• The NC ESC paid $ 69,104,612 in Unemployment Insurance ( UI) benefits during the month of November 2006, representing a $ 2.8 million

increase from the $ 66,349,279 paid during October 2006, and $ 242,527 more than the $ 68,862,085 paid during November 2005.

• During the month ending Nov. 30, 2006, individuals receiving UI benefits totaled 85,663, which represented an increase of 5,779 when

compared to the 79,884 recipients during the month ending Oct. 31, 2006, and an increase of 1,441 from those 84,222 recipients during the

month ending Nov. 30, 2005.

• The average UI check during November 2006 was $ 259.42; October 2006, $ 262.48; and November 2005, $ 251.37. The maximum weekly benefit

amount is $ 457.

• To qualify for UI, the base period wages must be, at the minimum, $ 4,113.24 ( six times the 2005 average weekly wage of $ 685.54.) The ESC

began November 2006 with a balance of $ 166,335,354 in the UI Trust Fund.

• During November 2006, $ 131.8 million was collected in UI taxes and $ 69.1 million was paid in UI benefits.

• November 2006 includes benefits paid from the UI Trust Fund for the period Oct. 31, 2006- Nov. 29, 2006. October 2006 includes benefits paid

from the UI Trust Fund for the period Sept. 29, 2006- Oct. 30, 2006.

December 2006 NC Today 24

110

115

120

125

130

135

140

Jan- 00

Apr- 00

Jul- 00

Oct- 00

Jan- 01

Apr- 01

Jul- 01

Oct- 01

Jan- 02

Apr- 02

Jul- 02

Oct- 02

Jan- 03

Apr- 03

Jul- 03

Oct- 03

Jan- 04

Apr- 04

Jul- 04

Oct- 04

Jan- 05

Apr- 05

Jul- 05

Oct- 05

Jan- 06

Apr- 06

Jul- 06

Oct- 06

Years

Index

96

100

104

108

112

116

120

124

Jan- 00

Apr- 00

Jul- 00

Oct- 00

Jan- 01

Apr- 01

Jul- 01

Oct- 01

Jan- 02

Apr- 02

Jul- 02

Oct- 02

Jan- 03

Apr- 03

Jul- 03

Oct- 03

Jan- 04

Apr- 04

Jul- 04

Oct- 04

Jan- 05

Apr- 05

Jul- 05

Oct- 05

Jan- 06

Apr- 06

Jul- 06

Oct- 06

Years

Index

NC Leading Index NC Coincident Index

NC Leading Index & NC Coincident Index ( 1996= 100)

• The Coincident Index includes: the U. S. Index of Industrial Production, N. C. Total Agricultural Employment, and U. S. Real Retail Sales.

• The five components included in the North Carolina Leading Index are: North Carolina Average Weekly Hours worked in Manufacturing, North

Carolina Initial Claims for Unemployment, North Carolina Residential Building Permits, New Orders for Total Capital Goods and New Orders for

Non- Defense Goods produced monthly by US Census.

Source: Labor Market Information Division, ESC of NC

North Carolina Economic Indicators

October 2006

US Leading Index ( 1996= 100)

25 December 2006 NC Today

North Carolina Economic Barometers

October 2006

Overall, the economy shows modest growth in spite of some sectors showing signs of weakening.

North Carolina’s Leading Indicator

The state’s leading index improved slightly from September to October:

• Initial claims for unemployment insurance increased over the month, but have remained relatively low and stable during the past

year.

• Manufacturing, while diminished in employment, appears to be on very solid footing as the average weekly hours registered above 40

hours for the second consecutive month.

• Showing signs of stabilizing, residential building permits were virtually unchanged, but have fallen well below the pace set earlier in

2006.

• While sales of existing homes posted a slight increase ( nationally), the price fell for the third straight month.

• Although slightly higher than the average so far for 2006, new orders for non- defense goods declined in October from an all- time high

set in September.

• New orders for total capital goods also declined in October from an all- time high set in September, but remain slightly higher than six

months ago.

North Carolina’s Coincident Indicator

The coincident index for the state reports a continuation of very slow growth:

• Retail sales in the country declined over the month. However, inflation ( consumer price index) declined even more.

• The monthly estimate of people working declined in October — only the second decline reported this year ( seasonally adjusted).

• The Index of Industrial Production ( a measure a manufacturing activity) reported a slight increase during October, although the

measure has shown that recent manufacturing activity has slowed.

* Note: A 3- month moving average is incorporated in the NC Leading Index which has the effect of smoothing volatility over time.

December 2006 NC Today 26

A Comparison of Unemployment Rates in North Carolina, The United States and All States, October 2006 ........... 27

Percent Change in Nonfarm Employment by State, October 2005 - October 2006 ......................................... 28

A Comparison of Unemployment Rates in North Carolina and Selected Southeastern States, October 2006........... 29

North Carolina and Neighboring States; Comparison of Civilian Labor Force and Unemployment ....................... 30

North Carolina Nonfarm Employment, March 2001 - November 2006......................................................... 31

Manufacturing Change in States With Largest Employment, October 2001 Compared to October 2006 ................ 32

Comparison of North Carolina’s Recovery From Last Two Recessions, NC Manufacturing Employment ................. 33

Average Weekly Manufacturing Wage In Selected States, October 2006 ..................................................... 34

North Carolina Industry Composition as Compared With:

Georgia ............................................................................................................................... . 35

South Carolina ......................................................................................................................... 36

Tennessee .............................................................................................................................. 37

Mississippi .............................................................................................................................. 38

Florida ............................................................................................................................... .. 39

Alabama ............................................................................................................................... 40

Virginia....................................................................................................................... .......... 41

Unemployment Rate by State, October 2006 ..................................................................................... 42

North Carolina and Neighboring States’ Employment, Total Nonfarm and Government................................... 43

North Carolina and Neighboring States’ Employment, Manufacturing and Total Service Providing...................... 44

Glossary of Terms ..................................................................................................................... 45

Attachments

27 December 2006 NC Today

2.1%

4.7%

4.7%

4.7%

6.9%

4.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Hawaii Georgia Maine North Carolina Michigan United States

A Comparison of Unemployment Rates In

North Carolina, The United States and All States

October 2006*

( Seasonally Adjusted)

• In October 2006, 14 states had unemployment rates higher than North Carolina’s rate.

33 States

Below

* Most recent data available for comparison purposes.

Source: Bureau of Labor Statistics, US DOL

States With Rates Higher Than North Carolina

~ Texas 4.8% ~ Washington 4.8% ~ Indiana 5.0% ~ Rhode Island 5.0% ~ Arkansas 5.1% ~ Ohio 5.1% ~

~ Oregon 5.1% ~ West Virginia 5.1% ~ Kentucky 5.2% ~ Missouri 5.4% ~ Alaska 6.4% ~ South Carolina 6.6% ~

~ Mississippi 6.7% ~ Michigan 6.9% ~

14 States

Above

December 2006 NC Today 28

Source: Bureau of Labor Statistics, US DOL

Note: Data are preliminary.

29 December 2006 NC Today

2.9%

3.1%

3.2%

4.2%

4.5%

4.7%

4.7%

5.1%

5.2%

6.6%

6.7%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

Virginia

Florida

Alabama

Louisiana

Tennessee

Georgia

North Carolina

West Virginia

Kentucky

South Carolina

Mississippi

Source: Bureau of Labor Statistics, US DOL

* Most recent data available for comparison purposes

A Comparison of Unemployment Rates In

North Carolina and Selected Southeastern States

October 2006*

( Seasonally Adjusted)

December 2006 NC Today 30

Civilian Labor Force

Source: Bureau of Labor Statistics, US DOL

Unemployment

Source: Bureau of Labor Statistics, US DOL

North Carolina and Neighboring States’ Labor Force Data

October 2005 - October 2006

( Seasonally Adjusted)

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

4,500.0

5,000.0

Oct- 05

Nov- 05

Dec- 05

Jan- 06

Feb- 06

Mar- 06

Apr- 06

May- 06

Jun- 06

Jul- 06

Aug- 06

Sep- 06

Oct- 06

Georgia

North Carolina

South Carolina

Tennessee

Virginia

100.0

120.0

140.0

160.0

180.0

200.0

220.0

240.0

260.0

Oct- 05

Nov- 05

Dec- 05

Jan- 06

Feb- 06

Mar- 06

Apr- 06

May- 06

Jun- 06

Jul- 06

Aug- 06

Sep- 06

Oct- 06

Georgia

North Carolina

South Carolina

Tennessee

Virginia

31 December 2006 NC Today

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Mar- 01

May- 01

Jul- 01

Sep- 01

Nov- 01

Jan- 02

Mar- 02

May- 02

Jul- 02

Sep- 02

Nov- 02

Jan- 03

Mar- 03

May- 03

Jul- 03

Sep- 03

Nov- 03

Jan- 04

Mar- 04

May- 04

Jul- 04

Sep- 04

Nov- 04

Jan- 05

Mar- 05

May- 05

Jul- 05

Sep- 05

Nov- 05

Jan- 06

Mar- 06

May- 06

Jul- 06

Sep- 06

Nov- 06

In Thousands

Nonfarm Employment

3,928,300

4,030,300

Service Providing Sector

2,962,900

3,227,700

Goods Producing Sector

965,400

802,600

2001 recession

• Since March 2001, employment in the Service Providing sector ( including Government) has increased by 8.9 percent or 264,800 jobs, while the

Goods Producing sector has decreased by 16.9 percent or 162,800 jobs.

• The Service Providing sector made up 75.4 percent of Total Nonfarm Employment in March 2001 compared to 80.1 percent in November 2006.

• The Goods Producing sector made up 24.6 percent of Total Nonfarm Employment in March 2001 compared to 19.9 percent in November 2006.

North Carolina Nonfarm Employment

March 2001 - November 2006

( Not Seasonally Adjusted)

Source: Current Employment Statistics, LMI of ESC

November 2006 data are preliminary, while earlier 2006 data are revised and all other years are benchmarked.

December 2006 NC Today 32

Manufacturing Change in States With Largest Employment

October 2001 Compared to October 2006

( Not Seasonally Adjusted)

State October 2001 October 2006 Percent Change

New Jersey 389.7 314.8 - 19.22%

Michigan 795.2 642.4 - 19.22%

North Carolina 680.8 552.8 - 18.80%

Massachusetts 375.1 305.0 - 18.69%

New York 690.2 561.5 - 18.65%

Pennsylvania 797.2 667.5 - 16.27%

South Carolina 301.6 252.9 - 16.01%

Illinois 791.0 678.4 - 14.24%

Ohio 925.0 805.9 - 12.88%

California 1,730.4 1,511.9 - 12.63%

Connecticut 221.3 193.5 - 12.56%

Arkansas 222.2 195.5 - 12.02%

Virginia 333.3 293.4 - 11.97%

Missouri 333.2 298.6 - 10.38%

Kentucky 284.4 256.5 - 9.81%

Tennessee 440.7 398.9 - 9.48%

Texas 1,000.3 914.5 - 8.58%

Wisconsin 547.9 508.3 - 7.23%

Florida 428.2 398.7 - 6.89%

Georgia 482.3 449.1 - 6.88%

Washington 311.5 290.8 - 6.65%

Alabama 318.5 298.0 - 6.44%

Minnesota 370.6 350.3 - 5.48%

Indiana 599.2 569.9 - 4.89%

Oregon 212.6 213.8 0.56%

Iowa 232.1 235.9 1.64%

Source: Bureau of Labor Statistics

November 2006 data are preliminary, while 2001 data are benchmarked.

( Employment in Thousands)

• Percentagewise, New Jersey and Michigan have lost the most manufacturing jobs since October 2001 with a loss of 19.22 percent. North

Carolina experienced the third largest loss ( 18.80%).

33 December 2006 NC Today

- 30%

- 25%

- 20%

- 15%

- 10%

- 5%

0%

5%

1 2 3 4 5 6 7 8 9 10 1112 13 14 1516 1718 1920212223242526272829303132333435363738394041424344454647484950 515253545556575859606162636465666768

Months from beginning of recession

% change from beginning of recession

1990- 91 Recession 2001 Recession

July 1990: 822,300

March 2001: 727,700

November 2006: 550,400

November 1995: 814,800

Comparison of North Carolina’s Recovery

From Last Two Recessions

North Carolina Manufacturing Employment

( Seasonally Adjusted)

• North Carolina has lost 24.3 percent ( 177,300 net) of its Manufacturing jobs since March of 2001.

November 2006 data are preliminary, while previous years’ data are benchmarked.

December 2006 NC Today 34

Average Weekly Manufacturing Wage

In Selected States

October 2006

Source: Bureau of Labor Statistics, US DOL

• Regional states’ largest industry in Manufacturing during October:

• Kentucky - Transportation Equipment Manufacturing

• Virginia - Transportation Equipment Manufacturing

• South Carolina - Textile Mills

• North Carolina - Textile Mills

• Florida - Computer & Electronic Product Manufacturing

• Alabama - Transportation Equipment Manufacturing

• Georgia - Food Manufacturing

• Tennessee - Fabricated Metal Product Manufacturing

• Mississippi - Furniture, Transportation and Food

• Louisiana - Chemical Manufacturing

• West Virginia - Chemical Manufacturing

$ 542.53

$ 547.86

$ 571.25

$ 592.76

$ 627.48

$ 642.47

$ 647.06

$ 687.24

$ 707.40

$ 746.13

$ 796.47

$ 0

$ 50

$ 100

$ 150

$ 200

$ 250

$ 300

$ 350

$ 400

$ 450

$ 500

$ 550

$ 600

$ 650

$ 700

$ 750

$ 800

Mississippi

Tennessee

Georgia

North Carolina

South Carolina

Alabama

Florida

Virginia

Kentucky

West Virginia

Louisiana

35 December 2006 NC Today

Other Services 3.6%

Government 16.3%

Construction 5.4%

Natural Resources &

Mining 0.3%

Manufacturing 10.9%

Trade, Transportation

& Utilities 21.3%

Information 2.9%

Financial Activities

5.6%

Professional &

Business Services

13.6%

Leisure & Hospitality

Services 9.3%

Educational & Health

Services 10.8%

Manufacturing 13.7%

Natural Resources &

Mining 0.2%

Construction 6.1%

Trade, Transportation

& Utilities 18.4%

Financial Activities

5.2%

Information 1.9%

Professional &

Business Services

11.5%

Educational & Health

Services 12.1%

Leisure & Hospitality

Services 9.1%

Other Services 4.4%

Government 17.4%

North Carolina Total: 4,027,000

North Carolina Industry Composition

As Compared With Georgia

October 2006

Georgia Total: 4,121,500

Source: Bureau of Labor Statistics, US DOL

Data are not seasonally adjusted and preliminary.

December 2006 NC Today 36

Manufacturing 13.2%

Construction 6.6%

Natural Resources & Mining

0.3%

Government 18.0%

Other Services 3.9%

Leisure & Hospitality

Services 10.8%

Professional & Business

Services 10.9%

Educational & Health

Services 10.0%

Financial Activities

5.4%

Information 1.5%

Trade, Transportation

& Utilities 19.4%

Manufacturing 13.7%

Natural Resources &

Mining 0.2%

Construction 6.1%

Trade, Transportation

& Utilities 18.4%

Financial Activities

5.2%

Information 1.9%

Professional &

Business Services

11.5%

Educational & Health

Services 12.1%

Leisure & Hospitality

Services 9.1%

Other Services 4.4%

Government 17.4%

North Carolina Total: 4,027,000

South Carolina Total: 1,922,400

Source: Bureau of Labor Statistics, US DOL

North Carolina Industry Composition

As Compared With South Carolina

October 2006

Data are not seasonally adjusted and preliminary.

37 December 2006 NC Today

Manufacturing 13.7%

Natural Resources &

Mining 0.2%

Construction 6.1%

Trade, Transportation

& Utilities 18.4%

Financial Activities

5.2%

Information 1.9%

Professional &

Business Services

11.5%

Educational & Health

Services 12.1%

Leisure & Hospitality

Services 9.1%

Other Services 4.4%

Government 17.4%

North Carolina Total: 4,027,000

Source: Bureau of Labor Statistics, US DOL

Tennessee Total: 2,799,500

North Carolina Industry Composition

As Compared With Tennessee

October 2006

Data are not seasonally adjusted and preliminary.

Manufacturing 14.2%

Trade, Transportation

& Utilities 22.0%

Financial Activities

5.2%

Information 1.8%

Professional &

Business Services

11.5%

Educational & Health

Services 12.2%

Leisure & Hospitality

Services 9.8%

Other Services 3.5%

Government 15.1%

Natural Resources &

Mining 0.2%

Construction 4.5%

December 2006 NC Today 38

Natural Resources &

Mining 0.8%

Construction 5.0%

Manufacturing 15.2%

Trade, Transportation

& Utilities 19.5%

Financial Activities 4.0%

Information 1.2%

Professional & Business

Services 7.9%

Educational & Health

Services 10.8%

Leisure & Hospitality

Services 10.5%

Other Services 3.3%

Government 21.8%

Manufacturing 13.7%

Natural Resources &

Mining 0.2%

Construction 6.1%

Trade, Transportation

& Utilities 18.4%

Financial Activities

5.2%

Information 1.9%

Professional &

Business Services

11.5%

Educational & Health

Services 12.1%

Leisure & Hospitality

Services 9.1%

Other Services 4.4%

Government 17.4%

North Carolina Total: 4,027,000

Source: Bureau of Labor Statistics, US DOL

Mississippi Total: 1,150,700

North Carolina Industry Composition

As Compared With Mississippi

October 2006

Data are not seasonally adjusted and preliminary.

39 December 2006 NC Today

Manufacturing 13.7%

Natural Resources &

Mining 0.2%

Construction 6.1%

Trade, Transportation

& Utilities 18.4%

Financial Activities

5.2%

Information 1.9%

Professional &

Business Services

11.5%

Educational & Health

Services 12.1%

Leisure & Hospitality

Services 9.1%

Other Services 4.4%

Government 17.4%

North Carolina Total: 4,027,000

Source: Bureau of Labor Statistics, US DOL

Florida Total: 8,113,000

North Carolina Industry Composition

As Compared With Florida

October 2006

Data are not seasonally adjusted and preliminary.

Educational & Health

Services 12.1%

Leisure & Hospitality

Services 11.2%

Other Services 4.4%

Government 13.9%

Natural Resources &

Mining 0.1%

Construction 7.6%

Manufacturing 4.9%

Trade, Transportation

& Utilities 19.7%

Information 2.1%

Financial Activities

6.7%

Professional &

Business Services

17.3%

December 2006 NC Today 40

Manufacturing 13.7%

Natural Resources &

Mining 0.2%

Construction 6.1%

Trade, Transportation

& Utilities 18.4%

Financial Activities

5.2%

Information 1.9%

Professional &

Business Services

11.5%

Educational & Health

Services 12.1%

Leisure & Hospitality

Services 9.1%

Other Services 4.4%

Government 17.4%

North Carolina Total: 4,027,000

Alabama Total: 1,981,100

Source: Bureau of Labor Statistics, US DOL

North Carolina Industry Composition

As Compared With Alabama

October 2006

Data are not seasonally adjusted and preliminary.

Educational & Health

Services 10.5% Professional &

Business Services

11.1%

Financial Activities

5.0%

Information 1.5%

Trade, Transportation

& Utilities 19.4%

Manufacturing 15.0%

Natural Resources &

Mining 0.7%

Construction 5.6%

Government 18.6%

Other Services 4.0%

Leisure & Hospitality

Services 8.6%

41 December 2006 NC Today

Manufacturing 13.7%

Natural Resources &

Mining 0.2%

Construction 6.1%

Trade, Transportation

& Utilities 18.4%

Financial Activities

5.2%

Information 1.9%

Professional &

Business Services

11.5%

Educational & Health

Services 12.1%

Leisure & Hospitality

Services 9.1%

Other Services 4.4%

Government 17.4%

Source: Bureau of Labor Statistics, US DOL

Virginia Total: 3,759,600

Data are not seasonally adjusted and preliminary.

North Carolina Industry Composition

As Compared With Virginia

October 2006

North Carolina Total: 4,027,000

Educational & Health

Services 11.0% Professional &

Business Services

16.7%

Financial Activities

5.2%

Information 2.4%

Trade, Transportation

& Utilities 17.5%

Manufacturing 7.8%

Other Services 5.0%

Leisure & Hospitality

Services 8.9%

Government 18.1%

Natural Resources &

Mining 0.3%

Construction 7.1%

December 2006 NC Today 42

Source: Bureau of Labor Statistics, US DOL

Note: Data are preliminary.

43 December 2006 NC Today

Source: Bureau of Labor Statistics, US DOL

Source: Bureau of Labor Statistics, US DOL

Government

Total Nonfarm Employment

North Carolina and Neighboring States’ Employment

October 2005 - October 2006

( Not Seasonally Adjusted)

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

4,500.0

Oct- 05

Nov- 05

Dec- 05

Jan- 06

Feb- 06

Mar- 06

Apr- 06

May- 06

Jun- 06

Jul- 06

Aug- 06

Sep- 06

Oct- 06

Georgia

North Carolina

South Carolina

Tennessee

Virginia

250.0

300.0

350.0

400.0

450.0

500.0

550.0

600.0

650.0

700.0

750.0

Oct- 05

Nov- 05

Dec- 05

Jan- 06

Feb- 06

Mar- 06

Apr- 06

May- 06

Jun- 06

Jul- 06

Aug- 06

Sep- 06

Oct- 06

Georgia

North Carolina

South Carolina

Tennessee

Virginia

December 2006 NC Today 44

1,200.0

1,700.0

2,200.0

2,700.0

3,200.0

3,700.0

Oct- 05

Nov- 05

Dec- 05

Jan- 06

Feb- 06

Mar- 06

Apr- 06

May- 06

Jun- 06

Jul- 06

Aug- 06

Sep- 06

Oct- 06

Georgia

North Carolina

South Carolina

Tennessee

Virginia

200.0

250.0

300.0

350.0

400.0

450.0

500.0

550.0

600.0

Oct- 05

Nov- 05

Dec- 05

Jan- 06

Feb- 06

Mar- 06

Apr- 06

May- 06

Jun- 06

Jul- 06

Aug- 06

Sep- 06

Oct- 06

Georgia

North Carolina

South Carolina

Tennessee

Virginia

Source: Bureau of Labor Statistics, US DOL

Manufacturing

Source: Bureau of Labor Statistics, US DOL

Total Service Providing

North Carolina and Neighboring States’ Employment

October 2005 - October 2006

( Not Seasonally Adjusted)

45 December 2006 NC Today

Glossary of Terms

Average Hourly Earnings: The average hourly earnings of production workers in manufacturing industries and

non- supervisory employees in non- manufacturing industries are calculated each month for selected industry groups by

the Employment Security Commission ( ESC) in the Current Employment Statistics ( CES) Program. Currently the CES

program reports hours worked and earnings for production workers and non- supervisory only. In the near future, this

report will include hours worked and wages paid for all workers.

Average Weekly Wage: The average weekly earnings of all employees covered under the State Unemployment

Program.

Base- Period Wages: A time period designated by state Unemployment Insurance ( UI) laws that determines a person’s

monetary eligibility to file for benefits. In North Carolina, this means the first four of the last five completed calendar

quarters immediately preceding the first day of an individual’s benefit year. If an individual lacks sufficient

base- period wages in order to establish a benefit year, the claimant shall have an alternative base period substituted.

An “ alternative base period” means the last four completed calendar quarters. The current required minimum

base- period wages are $ 3,842.58 ( 6x the previous year’s average weekly wage).

Benchmark: A point of reference ( either an estimate or a count) from which measurement can be made or upon

which adjustments to estimates are based. In US Department of Labor ( DOL) terminology, these are comprehensive

employment data compiled annually and used as a basis for developing and adjusting interim estimates made from

sample information. Monthly employment estimates are developed from reports submitted by a sample of employers,

and the series are revised to benchmarks once each year used either singularly or in combination sources that provide

the most complete count of employment.

Civilian Employment: As measured by the Current Population Survey ( CPS), civilian employment consists of civilian or

non- institutional workers 16 years of age and older who 1) during the survey week, worked as paid employees, or in

their own business or farm or profession, or who worked 15 hours or more as unpaid workers in a family enterprise,

and 2) were not working, but who had jobs or businesses from which they were temporarily absent because of illness,

inclement weather, vacation, work stoppage or labor management dispute, or personal reasons, whether or not they

were paid for time off.

Civilian Labor Force: Individuals, 16 years of age and older, who were working or actively seeking work during the

survey week; also, the aggregation of civilian employment and unemployment.

Civilian Population: As defined by the Current Population Survey ( CPS), civilian population includes persons 16 years

of age and older who reside in the United States, and are not institutionalized or on active duty in the Armed Forces.

Civilian Unemployment: Non- institutionalized civilians who did not work but made specific efforts to find a job

within the past four weeks and were available for work ( except for temporary illness) during the survey week. Also

included as unemployed are those who did not work, but were available for work and 1) were waiting to be recalled

to a job from which they had been laid off or 2) waiting to begin a new job within 30 days. See also Unemployment,

Duration of and Reasons for.

Coincident Index: Variables that gauge current economic conditions are grouped into the NC Coincident Index. The

three current variables are US Index of Industrial Production, NC Total Nonagriculture Employment and US Real Retail

Sales. Monthly increases in the index indicate growth.

December 2006 NC Today 46

Current Employment Statistics ( CES): A monthly Bureau of Labor Statistics ( BLS) survey of 12,000 businesses in North

Carolina that collects information as to the number of jobs on the payroll during the week, which included the 12th of

that month. This data, which represents employment by industry division, are commonly referred to as the establish-ment

survey” or the “ wage and salary employment series.” Each month, the CES program releases preliminary”

employment and hours and earnings data for the prior month; also, “ revised” data are published for the month

preceding the prior month. Once Labor Market Information ( LMI) and BLS have verified the “ revised” data, it remains

unchanged until the new benchmark is completed the first of the following year.

* Individuals who hold more than one job are counted once for each job.

Current Population Survey ( CPS) or “ Household Survey”: A monthly survey of 60,000 households across the United

States ( 1,500 in North Carolina) that serves as a very important variable in calculating estimates of the civilian labor

force, employment, unemployment and the unemployment rate for all states. The CPS is a stratified random sample

conducted by the Bureau of the Census for the Bureau of Labor Statistics ( BLS). Members of these households, who

are working at more than one job, are counted as employed only once.

Discouraged Workers: Persons not included in the civilian labor force total who are not actively seeking work

because they believe none is available or because they lack the skills necessary to compete in the labor market.

Dislocated Worker: An individual who meets one of the following criteria:

∗ has been terminated or laid off or who has received a notice of termination or layoff from employment, is eligible

for or has exhausted his/ her entitlement to unemployment compensation, and is unlikely to return to his/ her

previous industry or occupation

∗ has been terminated, or who has received a notice of termination of employment, as a result of any permanent

closure of a plant or facility

∗ is long- term unemployed and has limited opportunities for employment or re- employment in the same or similar

occupation in the area in which such individual resides, including any older individual who may have substantial

barriers to employment by reason of age.

Durable Goods: Known as “ hard goods,” the term refers to manufactured or processed items generally considered to

have a normal life expectancy of three years or more. The durable goods manufacturing industries are: furniture and

related product; wood product; nonmetallic mineral product; fabricated metal product; machinery; computer and

electronic product; electrical equipment and appliance; transportation equipment and furniture and related product.

See also Nondurable Goods.

Duration of Unemployment: The length of time ( including the current survey week) during which individuals have

been classified as unemployed and looking for work. For persons on layoff, duration of unemployment represents the

number of weeks since the termination of their most recent employment.

Economic Indicators: Key statistics showing the direction of the economy. Among them are the unemployment

insurance claims, inflation rate, factory utilization rate and balance of trade. They also include measurements of

various economic and business movements and activities of a community such as: employment, unemployment, hours

worked, income, savings, volume of building permits, volume of sales, etc., whose fluctuations affect and may be

used to determine overall economic trends.

Employment: Used in labor market statistics and analysis, employment is expressed as the number of persons, who

during a given survey week, did any work at all as paid employees, in their own business, profession, or farm, or who

worked 15 hours or more as unpaid workers in an enterprise operated by a member of the family. Employment also

includes all those persons who were not working, but who had jobs or businesses from which they were temporarily

absent because of illness, bad weather, vacation, labor- management disputes or personal reasons, whether or not

they were seeking other jobs.

47 December 2006 NC Today

Employment- population ratio ( Current Population Survey) ( E- P): The proportion of the civilian noninstitutional

population aged 16 years and over that is employed.

Goods Producing: Industries including: mining, construction and manufacturing.

Gross National Product ( GNP): Developed by the US Department of Commerce, the GNP is considered the most

comprehensive single measure of economic activity. It is measured by the market value of goods and services

produced by the nation in a designated time period, usually a calendar or fiscal year.

Hours of Work: The number of hours worked during the establishment survey week. Persons who worked at least 35

hours during the survey week are designated as full time; persons who worked less are considered part time.

Industry: Used in the compilation of economic statistics, an industry describes a type of economic activity in which a

firm or group of firms is engaged. The North American Industry Classification System ( NAICS) provides numerical

classifications for these activities.

Job Order: A job order is a structured record filed with the Employment Security Commission ( ESC) of an employer’s

requirements for filling vacant positions with qualified workers.

Labor Demand: Labor demand is an estimate of the number of job opportunities which exist and will occur over a

given period of time. It is used for labor market analysis and for civilian labor force projections.

Labor Force Participation Rate: The civilian labor force expressed as a percentage of the civilian non- institutional

population 16 years and over.

Labor Market Area: A labor market area consists of a central city or cities and the surrounding territory within

commuting distance. It is an economically integrated geographical unit within which workers may readily change jobs

without changing their place of residence. The area generally takes the name of its central city. The boundaries

depend primarily on economic and geographic factors, and not on political jurisdiction.

Labor Market Information ( LMI): A term used to describe the delivery of labor force, employment, unemployment,

wage, supply and demand, occupational, industrial and economic and demographic data for the analysis of manpower

problems.

Labor Supply: The number of workers who are unemployed and seeking work, or who would seek employment if they

believed jobs were available.

Latino: An ethnic classification that includes persons of Mexican, Puerto Rican, Cuban or any other nationality based

on the Spanish cultures or languages; persons of Hispanic origin may be of any race.

Layoff: Suspension from pay by the company for reasons such as lack of orders, plant breakdown, and shortage of

materials or termination of seasonal or temporary employment.

Leading Index: Variables whose responses to major changes in the economy precede by several months other

important variables in the state’s economy. The five current variables are NC Initial Unemployment Insurance Claims,

New Orders for Non- Defense Goods ( Seasonally Adjusted), New Orders for Total Capital Goods ( Seasonally

Adjusted), NC residential Building Permits and NC Average Weekly Manufacturing Hours.

December 2006 NC Today 48

Local Area Unemployment Statistics ( LAUS): A federal ( Bureau of Labor Statistics [ BLS]/ state Employment Security

Commission [ ESC]) cooperative program which produces employment, labor force and unemployment estimates for

states and local areas. These are developed by the Employment Security agencies in accordance with BLS definitions

and procedures. Data are used for planning and budgetary purposes, as an indication of need for employment and

training programs, and in allocating federal funds.

Metropolitan Statistical Area ( Metro): An area qualifies for recognition as a Metro in one of two ways: it must either

have at least one urbanized area of 50,000 or more plus an adjacent territory that has a high degree of social and

economic integration with the core, as measured by commuting ties. It must also be defined as one or more

contiguous counties. There are 14 Metros in North Carolina consisting of 35 counties. The National Office of

Management and Budget ( OMB) is responsible for the definition of all Metros.

∗ Beginning with the January 2005 data, North Carolina began reporting on all 14 Metros. The areas are: Asheville

( Buncombe, Madison counties); Charlotte/ Gastonia ( Cabarrus, Gaston, Lincoln, Mecklenburg, Rowan, Union

counties and York County, SC); Fayetteville ( Cumberland County); Goldsboro ( Wayne County); Greens-boro/

Winston- Salem/ High Point ( Alamance, Davidson, Davie, Forsyth, Guilford, Randolph, Stokes, and Yadkin

counties); Greenville ( Pitt County); Hickory/ Morganton ( Alexander, Burke, Caldwell and Catawba counties);

Jacksonville ( Onslow County); Raleigh/ Durham/ Chapel Hill ( Chatham, Durham, Franklin, Johnston, Orange, and

Wake counties); Rocky Mount ( Edgecombe, Nash counties); Wilmington ( Brunswick, New Hanover counties).

Nondurable Goods: Known as “ soft goods,” nondurable goods refer to manufactured or processed items generally

considered to last for a short time — three years or less. The nondurable manufacturing industries include food;

beverage and tobacco products; textiles; apparel; paper; printing; chemicals; and plastics and rubber manufacturing.

See also Durable Goods.

Nonfarm ( nonagricultural) Wage and Salary Employment: The count of all full- time and part- time employees

( including employees on paid vacation or paid sick leave) by industry who worked or received compensation from

nonfarm establishments for any part of the pay period including the 12th of the month ( employees involved in labor

management disputes are not included). Manufacturing hours and earnings data by industry are also collected as part

of this survey.

North American Industry Classification ( NAICS): The NAICS is a new industrial classification system, which uses a

production- based framework, with special attention to new and emerging industries, service industries in general,

and industries involved in advanced technology. It is an outgrowth of the North American Free Trade Act ( NAFTA) and

allows the collection and tabulation of industry- level data to measure the economic impact of employers shifting

activities between Canada, Mexico and the United States. Classification is by major economic group ( two- digit),

economic subsector ( three- digit), industry group ( four- digit), international industry level ( five- digit), and national

industry level ( six- digit, optional) in order of increasing detail. Conversion from Standard Industrial Classification

system ( SIC) to NAICS was a three- year cycle that began with data collected in 1999. Both SIC and NAICS codes were

assigned until the year 2000 to assure uniformity and comparability in the analysis and presentation of statistical

data.

∗ Race ( White, Black and Other): The Current Population Survey ( CPS) requests the respondent to identify the race

of all members of the household, 16 years of age and older. The three racial categories identified on the survey

instrument are White, Black and Other, which are defined as the following:

∗ White: A racial classification for persons with origins related to any of the original peoples from Europe, North

Africa or the Middle East

∗ Black: A racial classification for persons with origins related to any of the black racial groups of Africa

∗ Other: Racial groups of Asians and Pacific Islanders, as well as Native Americans such as American Indians and

Alaskan Natives

49 December 2006 NC Today

Reasons for Unemployment: The unemployed are classified into one of four major groups:

∗ Job Losers: Persons whose employment ended involuntarily and who immediately began looking for work

∗ Job Leavers: Persons who quit their job or otherwise terminated their employment voluntarily and immediately

began looking for work

∗ Re- entrants: Persons who worked previously, but have been out of the labor force for a period of time before

actively seeking work again

∗ New Entrants: Persons who are seeking employment for the first time ( i. e., they have never previously held a

job).

Seasonal Adjustment: Adjustments that are statistical modifications made to compensate for predictable fluctuations

which recur more or less regularly every year in a time series such as unemployment rates. These fluctuations can be

so strong as to distort the underlying changes in trends. For this reason, some unemployment rates are reported on a

seasonally adjustment basis, compensating for such influences as the summer closing of schools, temporary hiring for

holiday season and seasonal style changes. Such adjustments facilitate the evaluation of more important underlying

reasons for month- to- month changes in joblessness.

Service Providing: Industries including: trade, transportation and utilities; information; financial activities;

professional and business; educational and health; leisure and hospitality; other; and government services. See also

Goods Producing.

Seasonal Factors: Fluctuations in a statistical series ( e. g., employment, unemployment, etc.) resulting from varying

cycles in individual industries and/ or combinations of industries, such as weather conditions, holidays and the start or

end of vacation seasons.

State Reserve Fund: A special limited fund created from part of the quarterly unemployment insurance ( UI) taxes

paid by employers. These funds may be used by the Employment Security Commission ( ESC) for loans to the UI Trust

Fund as security for loans from the Federal UI Trust Fund, and to pay any interest required on advances under Title XII

of the Social Security Act. The interest earned from investment of the Reserve Fund monies shall be deposited in a

fund to be known as the “ Worker Training Trust Fund.” These monies shall be used to:

∗ Fund programs specifically for the benefit of the unemployed worker who received notice of long- term layoff or

permanent unemployment. Examples of programs include adult basic education, adult high school or equivalency

programs, occupational skills training, assessment, job counseling and placement programs

∗ Continue operation of ESC offices throughout the state

∗ Provide refunds to employers

Survey Week: The week each month that includes the 12th during which the Current Population Survey ( CPS) is

conducted. The exception is in December when the survey week is moved forward one week to avoid holiday

collection and data problems.

Unemployed: Persons in the labor force 16 years old and over who did not work during the survey week, but who

made specific efforts to find a job within the last four weeks and who are able and available for work during the

survey week. Also included were those who were not working and were waiting to report to a new wage or salary job

within 30 days.

Unemployment Insurance: Unemployment insurance is a program for the accumulation of funds paid by employers,

to be used for payment of unemployment insurance to workers during periods of job loss which is beyond their

control. Unemployment insurance replaces a part of the worker’s wage loss if he becomes eligible for payments.

December 2006 NC Today 50

Unemployment Insurance ( UI) Trust Fund: A fund that contains all employer contributions ( payroll taxes) and

benefit reimbursement payments from the state. The trust fund is an interest- bearing account in the US Treasury.

State and federal law dictated that the money be used exclusively to the payment of unemployment insurance

benefits.

Unemployment Rates: The number of unemployed individuals expressed as a percentage of the civilian labor force.

Unemployment, its level and composition, is widely regarded as a key index of economic well- being. Because of this,

there is a basic need for the objective measurement of the number and characteristics of the unemployed. The two

most common measures of unemployment are the total unemployment rate and the insured unemployment rate. Each

of these rates was developed to measure a specific segment of the unemployed labor force. Each rate is estimated

from a unique formula which incorporates different concepts and relationships among the unemployed, the employed

and the civilian labor force. Each rate utilizes different components in its estimating process, which is evident in both

the numbers and denominators. Finally, each rate provides a reasonably accurate means of unemployment, which is

easily applied and readily understood. The unemployment rates published for the nation, states and major areas

represent total unemployment.

Total Unemployment Rate: An expression of all unemployed persons as a percent of the civilian labor force:

Total Unemployment Rate= Total Unemployment

Total Civilian Labor Force ( Unemployment + Employment)

Insured Unemployment Rate: The ratio of insured unemployed individuals as a percent of the average insured

employment:

Insured Unemployment Rate= Insured Unemployment

Insured Employment

The insured unemployment ratio is an indicator of the claims workload used primarily by agency personnel.

51 December 2006 NC Today

Prepared By:

Employment Security Commission of North Carolina ( ESC),

Labor Market Information Division ( LMI)

www. ncesc. com