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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
Object Description
Description
| Title | North Carolina today |
| Other Title | North Carolina today (North Carolina. Labor Market Information Division); NC today |
| Date | 2006-12 |
| Description | December 2006 |
| Digital Characteristics-A | 5.2 KB; 56 p. |
| Digital Format | application/pdf |
| Pres Local File Path-M | \Preservation_content\StatePubs\pubs_borndigital\images_master\ |
| Full Text | Photo courtesy of NC Division of Tourism, Film and Sports Development Biltmore House, Asheville, NC 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 |
| OCLC number | 16694113 |
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