N.C. unemployment rate falls to 5.7 percent in October

North Carolina’s unemployment rate fell in October from September and employers continued to add jobs, a sign the state’s economy continues to improve as the end of 2015 draws near.

The state jobless rate dropped from 5.8 percent in September to 5.7 percent in October, the same as it was one year ago, the N.C. Commerce Department reported Friday.

Over the month, North Carolina experienced a net job loss of 3,100, led by the biggest decline in the leisure and hospitality sector, which shrank by 7,200.

Federal Reserve Bank of Richmond senior economist Rick Kaglic, who is based in Charlotte, attributes the sector’s job losses to seasonality and bad weather. Every month, he cautions against reading too far into one report and advises rather to look at trends.

“Labor demand remains strong in North and South Carolina. Year over year, we continue to see stronger-than-average job creation compared to the rest of the nation,” Kaglic said, adding that North and South Carolina are experiencing job growth rates of 2.2 percent and 2.9 percent, respectively, compared with the national average 2 percent.

In South Carolina, the unemployment rate fell to 5.6 percent in October from 5.7 percent in September, the state Commerce Department said Friday in a separate report. Employment statewide rose by 6,600 despite the adverse impact from flooding early in the month.

In North Carolina, non-farm employment has increased by 91,000 since October 2014. Last month, the job categories that expanded the most were government, which grew by 6,400, and construction, which grew by 2,200.

In a call with reporters Friday morning, Kaglic said retailers with whom he’s spoken have said they plan to do a little more seasonal hiring this year than last, and that they’re holding onto a bit more inventory this year, a sign they expect sales to rise.

“I think with the job growth we have seen in North and South Carolina, households are well-positioned to spend a little bit more this holiday season,” Kaglic said.

Nationally, the unemployment rate was 5 percent in November, the lowest it’s been since April 2008, the U.S. Labor Department reported earlier this month. National unemployment data for November will be reported Dec. 4.

This story was originally published November 20, 2015 at 11:34 AM with the headline "N.C. unemployment rate falls to 5.7 percent in October."