See how North Carolina’s unemployment rates compare across the rest of the region, U.S.
Despite economic concerns stemming from high inflation that’s driving up the prices for everyday goods, another part of North Carolina’s economy continues to hum along relatively well: employment.
The state’s unemployment rate sits at 3.4% as of the latest data from the Bureau of Labor Statistics. That figure is in line with much of the country, with rates relatively low nationwide. But some experts have expressed concern that efforts to reduce high inflation could trigger a recession and accompanying layoffs that drive up unemployment rates.
Here’s what to know about North Carolina’s unemployment rate, how it compares to the rest of the region and county and what impacts inflation could have.
How does NC unemployment rate compare to rest of region, county?
North Carolina’s unemployment rate of 3.4% is virtually in the middle of all 50 states. The rate is slightly higher than those of neighboring states Virginia, Tennessee, Georgia and South Carolina.
The rate has rebounded from the depths of the pandemic, when unemployment soared to levels even higher than what was seen during the Great Recession. North Carolina’s rate is also slightly down from a year ago, when the statewide unemployment rate was 5%.
How does inflation affect employment?
With inflation still reaching levels not seen in decades, the Federal Reserve has raised interest rates in an attempt to pull consumer prices back down.
But some economists caution that could trigger a recession, which would mean layoffs and higher unemployment rates.
Duke University professor and economist Connel Fullenkamp previously told the Observer he sees North Carolina’s economy as generally “in really good shape” but that doesn’t mean the state wouldn’t feel the effects of a recession.
“That doesn’t mean that the jobs are going to be there for everybody,” he said. “Most of the companies that are coming to North Carolina are (bringing) high-skilled, high-paying jobs, which is great, but that doesn’t necessarily help the folks who are most likely to lose their jobs in a recession, who tend to be in low-skilled, low-wage jobs.”
