RALEIGH – Unemployment in North Carolina dropped in June to its lowest level since the pandemic – 3.3% – with 14,000 people finding jobs and the unemployed ranks declining more than 3,000. In fact, more people are working statewide than ever, points out N.C. State economist Dr. Mike Walden, and he sees the new report as one packing “positive signs.”

So said the N.C. Department of Commerce in its latest job data announced Friday.

Employment even improved in the tech sector by 400 despite layoffs continuing to hit high-tech firms.

The jobless rate fell 0.1% from a revised May rate of 3.4% and is down 0.3% from June 2022. (The national jobless rate is 3.6%.)

Mike Walden (NCSU photo)

More jobs in several categories now exceeds pre-pandemic numbers

North Carolina hasn’t had a lower jobless rate since 3.1% in 1999, according to federal data, Walden adds. The Department of Commerce says the 3.3% rate matches the post-pandemic lows reported in March and April of 2022.

“The June labor market report for North Carolina continued to show positive trends,” Walden tells WRAL TechWire.

“Both employment surveys – one from households and the other from businesses – registered gains, meaning more jobs have been filled and more people are working,” he adds in an analysis of the report requested by TechWire.

“Sectors that suffered during the labor shortage – such as leisure/hospitality, construction, and manufacturing – continue to add jobs.  These sectors now have more employment than before the pandemic. Statewide, North Carolina continues to set a new record in every recent month for the number of individuals working in the State.”

The seasonally adjusted data shows 4,909,800 people working, up 4,900 from May.

Just named the “Top State for Business” two years running by CNBC, North Carolina continues to land economic expansion projects promising thousands of future jobs. While advertised job openings have declined across the Triangle in recent months as noted in WRAL TechWire’s Jobs Report and tech job advertising is down sharply from a year ago, companies continue to hire.

Sectors adding jobs:

  • Professional & Business Services, 3,500
  • Manufacturing, 2,000
  • Education & Health Services, 1,600
  • Leisure & Hospitality Services, 1,200
  • Information, 400
  • Financial Activities, 200
  • Government, 100
  • Mining & Logging, 100.

However jobs fell in construction, 2,900; trade, transportation and utilities, 1,000; and other services, 300.

The number of unemployed (172,680) is not a record. The record low was set in Feb 1989 (118,367), according to the Department of Commerce.

Good economic news: Unemployment claims drop; GDP revised upward

Warning signs

While the jobs trend continues to be good, that could change in an economy still facing inflation and chances of a recession, Walden cautions.

“While job growth continues, the pace of improvement is slowing.  For example, from June 2022 and June 2023, total non-farm job growth in the state was 2.3%.  But this is significantly slower than the 4.5% job growth rate from June 2021 to June 2022.,” he says.

“Although slower job growth is exactly what the Federal Reserve wants, the big question is whether ‘slow’  will eventually turn into ‘no’ – or even ‘negative’- job growth. Economists still are divided as to whether a modest recession will happen in early 2024, which could bring about some job reductions and higher unemployment.”