James K. Polk United States President ( ) Mecklenburg County NC

Transcription

1 february 2006 James K. Polk United States President ( ) Mecklenburg County NC

2 January Highlights The Unemployment Rate (Seasonally Adjusted) North Carolina s January unemployment rate decreased 0.8 of a percentage point over the month and over the year. This is the first time since December 2000 that North Carolina s unemployment rate has been this low. 0.0 December-04 January-05 December-05 January-06 Source: Local Area Unemployment Statistics, LMI of ESC Total Nonfarm Employment (Seasonally Adjusted) 3, ,700 The number of jobs increased by 11,700 over the month, and 68,000 since January , , ,400 3, , , , , ,840.0 December-04 January-05 December-05 January-06 Source: Current Employment Statistics, LMI of ESC Note: January 2006 data are preliminary while 2005 and 2004 are benchmarked. January 2006 NC Today I

3 January 2006 NC Today II

4 Table Of Contents North Carolina/United States Civilian Labor Force Data... 1 North Carolina/United States Labor Force Comparison Change, January January North Carolina/United States Employment Comparison Change, January January North Carolina/United States Unemployment Comparison Change, January January North Carolina/United States Unemployment Rates Comparison Change, January January Announced Business Closings and Permanent Layoffs, January Total Nonfarm Employment in North Carolina, January Total Nonfarm Employment in North Carolina, January January Total Nonfarm Employment Change in North Carolina, December January North Carolina Sector Employment as Percentage of Total Employment, January Employment Change by Major Industries, January January Total Manufacturing Employment in North Carolina, January January Employment Change in Manufacturing Industries, January January Manufacturing Industries in North Carolina, January 2001 Compared to January Manufacturing Industries in the United States, January 2001 Compared to January North Carolina Manufacturing, January January Total Service Providing Employment in North Carolina, January January Private Service Providing Industries in North Carolina, January 2001 Compared to January Private Service Providing Industries in the United States, January 2001 Compared to January Employment Change in Service Providing Industries, January January Unemployment Insurance Benefits Paid, January January January 2006 Trust Fund Activities North Carolina Economic Indicators, December Attachments January 2006 NC Today III

5 January 2006 NC Today IV

6 North Carolina Civilian Labor Force Data North Carolina (Model Based Data) Seasonally Adjusted January December 2006 p 2005 January 2005 January 2004 January 2001 Change Dec to Jan Change Jan to Jan Labor Force 4,362,082 4,369,451 4,291,860 4,235,212 4,150,295-7,369 70,222 Employment 4,172,633 4,145,625 4,072,062 3,985,838 3,965,955 27, ,571 Unemployment 189, , , , ,340-34,377-30,349 Unemployment Rate Not Seasonally Adjusted Labor Force 4,331,131 4,353,418 4,256,272 4,220,067 4,163,377-22,287 74,859 Employment 4,124,685 4,149,907 4,015,652 3,954,138 3,959,708-25, ,033 Unemployment 206, , , , ,669 2,935-34,174 Unemployment Rate Note: Numbers may not add due to rounding data are benchmarked. Source: Local Area Unemployment Statistics, LMI of ESC P Preliminary data United States Civilian Labor Force Data United States (CPS Data) Seasonally Adjusted January December 2006 p 2005 November 2005 January 2005 January 2001 Change Dec to Jan Change Jan to Jan Labor Force 150,114, ,153, ,183, ,956, ,800,000-39,000 2,158,000 Employment 143,074, ,779, ,611, ,234, ,778, ,000 2,840,000 Unemployment 7,040,000 7,375,000 7,572,000 7,723,000 6,023, , ,000 Unemployment Rate Not Seasonally Adjusted Labor Force 149,090, ,874, ,239, ,125, ,828, ,000 1,965,000 Employment 141,481, ,918, ,968, ,682, ,181,000-1,437,000 2,799,000 Unemployment 7,608,000 6,956,000 7,271,000 8,444,000 6,647, , ,000 Unemployment Rate Note: Numbers may not add due to rounding. January 2006 data are preliminary while data are benchmarked. Source: Bureau of Labor Statistics, US Department of Labor P Preliminary data. The over-the-month change in the unemployment rate (from 5.1% in December to 4.3% in January) was significant. The rate has been trending downward, but not so dramatically in such a short period. The next couple months will probably balance out a more stable economic pattern. In North Carolina, the January seasonally adjusted civilian labor force decreased 0.2 of a percent from the December 2005 benchmarked level. This was caused by a 15.4 percent drop in unemployment, which was not offset by a 0.7 of a percent increase in employment. The United States seasonally adjusted civilian labor force changed little over the month(0.03%). Unemployment decreased 4.5 percent while employment increased 0.2 of a percent. January 2006 NC Today 1

7 North Carolina/United States Labor Force Comparison Change January 2005 January 2006 (Seasonally Adjusted) 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% -0.1% -0.2% -0.3% NC Change US Change 0.4% 0.4% 0.3% 0.2% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -0.1% -0.2% Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan Source: Local Area Unemployment Statistics, LMI of ESC Percentages are rounded. January 2006 data are preliminary while 2005 data are benchmarked. Month North Carolina Percent Change January 2006 NC Today 2 United States Percent Change January ,291, % 147,956, % February 4,300, % 148,271, % March 4,305, % 148,217, % April 4,311, % 148,839, % May 4,313, % 149,201, % June 4,319, % 149,243, % July 4,330, % 149,605, % August 4,348, % 149,792, % September 4,362, % 150,083, % October 4,368, % 150,043, % November 4,370, % 150,183, % December 4,369, % 150,153, % January ,362, % 150,114, % North Carolina s civilian labor force has been on a decline since August This is a result of a decreasing number of people unemployed. Employment growth, however, has not gained an equivalent amount. North Carolina s seasonally adjusted labor force participation rate was 65.7 percent, 0.3 percentage points lower than the United States rate of 66.0 percent. Over the month, the number of individuals not in the North Carolina labor force rose by 3.1 percent, according to the Current Population Survey (CPS). The increase across the United States was less at 1.2 percent, not seasonally adjusted. The number of people wanting a job rose by 6.0 percent for the United States, while decreasing 5.3 percent in North Carolina. The number of 16-to-19-year-olds in the North Carolina labor force decreased by 10.8 percent from December There was a 13.5 percent decline in the number of teens employed yet unemployment only rose by 3.5 percent in this age group. Across the United States, the 16-to-19- year-old s labor force increased by 6 percent. Both employment and unemployment rose by 5.1 percent and 10.9 percent, respectively.

8 North Carolina/United States Employment Comparison Change January 2005 January 2006 (Seasonally Adjusted) 0.8% 0.7% NC Change US Change 0.7% 0.6% 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% 0.3% 0.1% 0.2% 0.2% 0.0% 0.4% 0.2% 0.1% 0.0% 0.3% 0.3% 0.1% 0.2% 0.0% 0.4% 0.2% 0.0% 0.4% 0.1% 0.2% 0.0% 0.2% 0.1% 0.0% 0.2% -0.1% Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Employment North Carolina 2005 Source: Local Area Unemployment Statistics, LMI of ESC Percentages are rounded. January 2006 data are preliminary while 2005 data are benchmarked. Percent Change United States Percent Change January ,072, % 140,234, % February 4,079, % 140,285, % March 4,085, % 140,601, % April 4,088, % 141,196, % May 4,087, % 141,571, % June 4,087, % 141,750, % July 4,095, % 142,111, % August 4,114, % 142,425, % September 4,129, % 142,435, % October 4,137, % 142,625, % November 4,145, % 142,611, % December 4,145, % 142,779, % January ,172, % 143,074, % 2006 North Carolina s seasonally adjusted employment grew 0.7 of a percent from December. The increase in employment across the United States was lower at 0.2 of a percent. Employment growth over the year has the state at a slight 0.4 percentage point advantage over the nation. Both the United States and North Carolina s employment-to-population ratio was 62.9 percent. According to the CPS, the number of full-time workers increased by 0.3 of a percent over the month, while the number decreased 1.2 percent across the United States. The number of part-time workers decreased for North Carolina and the United States by 4.0 percent and 0.2 of a percent, respectively. January 2006 NC Today 3

9 North Carolina/United States Unemployment Comparison Change January 2005 January 2006 (Seasonally Adjusted) 5.0% 0.0% -5.0% NC Change US Change 3.4% 3.2% 3.8% 2.1% 1.3% 1.0% 0.8% 0.3% -0.5% -0.7% 0.6% 0.4% -0.2% 0.0% -2.7% -0.9% -3.1% -1.8% -1.7% -3.0% -3.9% -4.6% -2.6% -0.5% -4.5% -10.0% -15.0% -15.4% -20.0% Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan Source: Local Area Unemployment Statistics, LMI of ESC Percentages are rounded. January 2006 data are preliminary while 2005 data are bench- Month North Carolina Percent Change United States Percent Change January , % 7,723, % February 221, % 7,986, % March 220, % 7,616, % April 223, % 7,644, % May 225, % 7,629, % June 232, % 7,493, % July 234, % 7,494, % August 234, % 7,367, % September 232, % 7,648, % October 231, % 7,418, % November 224, % 7,572, % December 223, % 7,375, % January , % 7,040, % Source: Local Area Unemployment Statistics, LMI of ESC Note: January 2006 data are preliminary while all other data are benchmarked. North Carolina s significant 15.4 percent, unemployment drop was the largest seasonally adjusted unemployment change from December to January on record. The United States over-the-month change was much lower at 4.5 percent. In North Carolina, the number of job losers decreased by 5.3 percent, while the number of job leavers rose by 62 percent, according to the CPS. Job leavers generally leave their current jobs for two reasons: 1) other work, and 2) to leave the job market for reasons such as retirement, returning to school, illness, etc. Across the United States, the number of job losers and leavers both increased 10.2 and 10.5 percent, respectively. January 2006 NC Today 4

10 North Carolina/United States Unemployment Rates Comparison of Change January 2005 January 2006 (Seasonally Adjusted) 7.5 NC US Jan- Jan- Jan- Jan- Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Jan Prior Years Source: NC: Local Area Unemployment Statistics, LMI of ESC US: Bureau of Labor Statistics, US Department of Labor Note: January 2006 data are preliminary while all other data are benchmarked. Month North Carolina Change United States Change January February March April May June July August September October November December January Source: Local Area Unemployment Statistics, LMI of ESC Note: January 2006 data are preliminary while all other data are benchmarked. North Carolina s seasonally adjusted 4.3 percent unemployment rate was 0.4 percentage points below the United States rate of 4.7 percent. This is the first time North Carolina s rate has been below the U.S. rate since February The 0.8 percentage-point drop from December s benchmarked 5.1 percent matches the other largest over-the-month rate decrease in February percent in January 1978 compared to 4.7 percent in February North Carolina s unemployment rate has not been this low since December 2000, but is still 1.2 percentage points above the historic low of 3.1 percent in April January 2006 NC Today 5

11 Announced Business Closings & Permanent Layoffs January 2006 Industry Number of Establishments Total Affected Utilities 1 6 Manufacturing 11 1,193 Wholesale Trade 1 1 Retail Trade Transportation & Warehousing 3 39 Finance & Insurance Real Estate & Rental & Leasing 2 5 Professional, Scientific & Technical Services Admin. & Support, Waste Mgmt & Remediation Services 1 1 Educational Service 1 10 Health Care & Social Assistance 1 17 Arts, Entertainment & Recreational 3 47 Accommodation & Food Service 8 71 Other Services 2 9 Public Administration 1 3 Total 65 1,884 Source: LMI of ESC Note: Total is sum of known losses. The manufacturing industry continues to be the main source of business closings and permanent layoffs in North Carolina. January 2006 NC Today 6

12 Total Nonfarm Employment in North Carolina January 2006 (Numbers in Thousands) (Seasonally Adjusted) Change NAICS Industry January* December January December 2005 to January Net Percent Total Nonfarm Construction Manufacturing Trade, Trans., Warehousing & Utilities Information Financial Activities Professional & Business Services Educational & Health Services Leisure & Hospitality Services Government * Preliminary data Government 17.0% Other* 4.8% Construction 5.9% Manufacturing 14.2% Leisure & Hospitality Services 9.2% Trade, Trans, Warehousing & Utilities 18.6% Educational & Health Services 12.0% *Other includes Natural Resources, Mining and Other Services. Professional & Business Servcies 11.3% Information 1.9% Financial Activities 5.1% Seasonally adjusted, total nonfarm employment increased by 11,700 jobs over the month and gained 68,000 jobs over the year. Educational and Health Services reported the largest net (6,100) and percentage (1.3%) over-the-month gains. Educational and Health Services also had the largest net (19,600) and percentage (4.3%) over-the-year increase. January 2006 NC Today 7

13 Total Nonfarm Employment in North Carolina January 2005 January 2006 (Numbers in Thousands) 4,000.0 (Not Seasonally Adjusted) 3, , , , , , , , , , , , , , , , , , ,760.0 Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Jan Source: Current Employment Statistics, LMI of ESC January 2006 data are preliminary while 2005 data are benchmarked. The following table depicts North Carolina total nonfarm employment since January 2001: Year Total Nonfarm Employment January ,904,300 January ,783,200 January ,750,600 January ,739,700 January ,832,700 The January 2006 employment level of 3,904,100 is 71,400 (1.9%) higher than last January. The United States has had a 1.5 percent employment increase from January 2001 to January North Carolina has had no employment January 2006 NC Today 8

14 Total Nonfarm Employment Change In North Carolina December 2005 to January 2006 (Not Seasonally Adjusted) January December % % % % -0.4% % % % Construction Manufacturing Trade, Trans., Warehousing & Utilities Information Professional & Business Services Educational & Health Services Leisure & Hospitality Services Government Source: Current Employment Statistics, LMI of ESC. January data are preliminary while 2005 data are benchmarked Although not historically unusual, all major industries lost jobs from December to January. The largest over-the-month job decrease was in Trade, Transportation, Warehousing and Utilities industry, which lost 22,900 (3.1%) jobs. January 2006 NC Today 9

15 North Carolina Sector Employment As Percentage of Total Employment January 2006 (Not Seasonally Adjusted) Total Nonfarm Employment 3,904,100 Other Services 4.5% Leisure & Hospitality Services 8.8% Government 17.4% Educational & Health Services 12.1% Natural Resources & Mining 0.2% Professional & Business Services 11.2% Construction 5.9% Manufacturing 14.3% Financial Activities 5.1% Wholesale Trade 4.3% Retail Trade 11.1% Transportation, Warehouse & Utilities 3.2% Information 2.0% Source: Current Employment Statistics, LMI of ESC 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. January 2006 NC Today 10

16 Employment Change by Major Industries January 2005 January 2006 (Numbers in Thousands) Financial Activities (Not Seasonally Adjusted) +8.1 Trade +3.9 Trans., Warehousing & Utilities -1.1 Prof. & Business Services +6.5 Manufacturing -9.0 Leisure & Hospitality Services +9.6 Information +0.8 Government Ed. & Health Services Construction (employment in thousands) Source: Current Employment Statistics, LMI of ESC January 2006 is preliminary data while 2005 is benchmarked. Educational and Health Services had the largest over-the-year increase, gaining 19,200 (4.2%) jobs. Construction (4.9%), Financial Activities (4.2%), Leisure and Hospitality Services (2.9%), Government (2.1%), Professional and Business Services (1.5%), Information (1.1%), and Trade, Transportation, Warehousing, & Utilities (0.4%) all had over-the-year increases. January 2006 NC Today 11

17 Total Manufacturing Employment in North Carolina January 2005 January 2006 (Numbers in Thousands) (Not Seasonally Adjusted) Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Jan. Source: Current Employment Statistics, LMI of ESC January 2006 data is preliminary while 2005 is benchmarked The following table depicts North Carolina manufacturing employment since January 2001: Year Manufacturing Employment January ,100 January ,000 January ,900 January ,900 January ,500 Not seasonally adjusted manufacturing employment declined 1.6 percent or 9,000 jobs from January The United States has seen a 0.3 percent decrease in manufacturing employment since January January 2006 NC Today 12

18 Employment Change in Manufacturing Industries January 2005 January 2006 Total: 559,500 (Not Seasonally Adjusted) (employment in thousands) 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 Jan-05 Jan-06 Source: Current Employment Statistics, LMI of ESC January 2006 data are preliminary while 2005 is benchmarked. The Textile industry combining Textile Mills and Textile Product Mills has the largest number of manufacturing jobs in North Carolina, but also had the largest over-the-year employment decline. The largest over-the-year manufacturing increase was in Transportation Equipment. Other manufacturing industries with over-the-year increases: Computer and Electronic Product, 600; Beverage and Tobacco Product, 500; Plastics and Rubber Manufacturing, 500; Fabricated Metal Product, 300; Wood Product, 100; and Machinery, 100. January 2006 NC Today 13

19 North Carolina Manufacturing Industries January 2001 Compared to January Total: 559,500 All Other 11.4% Wood Product 4.8% Fabricated Metal Product 7.3% Plastics & Rubber 6.0% Machinery 5.5% Chemical 7.8% Computer & Electronic Product 6.9% Printing 2.6% Electrical Equip. & Appliance 4.5% 2001 Apparel Mfg. 4.1% Textiles 11.3% Beverage & Tobacco Product 2.8% Food 8.8% Furniture & Rel. Product 9.6% Transportation Equip. 6.6% Source: Current Employment Statistics, LMI of ESC Total: 741,100 Plastics & Rubber 5.3% Chemical 6.6% Printing 2.4% All Other 9.7% Wood Product 3.9% Fabricated Metal Product 6.1% Machinery 5.4% Computer & Electronic Product 8.2% Apparel Mfg. 5.9% Electrical Equip. & Appliance 5.6% Textiles 16.2% Source: Current Employment Statistics, LMI of ESC Beverage & Tobacco Product 2.6% Food 6.8% Transportation Equip. 4.9% Furniture & Rel. Product 10.4% North Carolina has lost 24.5 percent of its manufacturing jobs since January Pharmaceutical and Medicine (2,900) with in Chemical Manufacturing, and Transportation Equipment (700) were the only manufacturing industries with employment increases over the five-year period. January 2006 NC Today 14

20 2006 Total: 14,105,000 United States Manufacturing Industries January 2001 Compared to January 2006 Wood Product, 3.9% Fabricated Metal Product, 10.8% Machinery, 8.2% All Other, 16.1% Computer & Electronic Product, 9.3% Plastics & Rubber, 5.6% Electrical Equip. & Appliance, 3.1% Chemical, 6.2% Transportation Equip., 12.5% Printing, 4.5% Apparel Mfg., 1.7% Furniture & Rel. Product, 3.9% 2001 Textiles, 2.7% Beverage & Tobacco Product, 1.3% Food, 10.2% Source: Bureau of Labor Statistics Total: 16,993,000 Wood Product, 3.4% Fabricated Metal Product, 10.3% Machinery, 8.5% All Other, 15.7% Computer & Electronic Product, 11.0% Plastics & Rubber, 5.5% Chemical, 5.7% Printing, 4.7% Apparel Mfg., 2.7% Textiles, 3.4% Beverage & Tobacco Product, 1.2% Food, 9.0% Transportation Equip., 11.6% Furniture & Rel. Product, 3.9% Electrical Equip. & Appliance, 3.4% Source: Bureau of Labor Statistics Manufacturing employment in the United States has decreased by 17 percent since January All major manufacturing industries in the United States lost jobs during the five-year period; however, the manufacturing of Transportation Equipment, Food, Chemical, Plastic & Rubber, Wood Products and Fabricated Metals now take a higher percentage of the total employment. January 2006 NC Today 15

21 North Carolina Manufacturing January 2005 January 2006 Average Weekly Hours Average Hourly Earnings Average Weekly Earnings January $14.25 $ February 39.9 $14.26 $ March 39.9 $14.32 $ April 40.0 $14.28 $ May 39.7 $14.34 $ June 39.9 $14.38 $ July 38.8 $14.50 $ August 39.8 $14.31 $ September 40.2 $14.35 $ October 40.9 $14.41 $ November 40.7 $14.58 $ December 39.6 $14.59 $ January $14.50 $ Source: Current Employment Statistics, LMI of ESC Over the month, Manufacturing s average hourly earnings decreased by $0.09, average weekly earnings decreased by $3.56, and average weekly hours stayed the same. Over the month, Durable Goods average hourly earnings decreased by $0.03, average weekly earnings increased by $0.29, and average weekly hours increased by 0.1 (six minutes). Over the month, Nondurable Goods average hourly earnings decreased by $0.15, average weekly earnings decreased by $5.77, and average weekly hours stayed the same. Durable Goods include: Wood, Nonmetallic Mineral, Fabricated Metal, Machinery, Computer & Electronic Products, Transportation Equipment, and Furniture. Nondurable Goods include: Food, Beverage, Tobacco, Textiles, Apparel, Paper, Printing, Chemicals, Plastics & Rubber. January 2006 NC Today 16

22 Total Service Providing Employment In North Carolina January 2005 January 2006 (Numbers in Thousands) 3,180.0 (Not Seasonally Adjusted) 3, , , , , , , , , , , , , , , , , , , , , , , ,960.0 Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Jan Source: Current Employment Statistics, LMI of ESC January 2006 data are preliminary while 2005 is benchmarked. The following table depicts Service Providing employment since January 2001: Year Service Providing Employment January ,931,400 January ,903,800 January ,916,000 January ,952,000 January ,038,100 Over the year, the Service Providing sector increased by 2.3 percent or 69,600 jobs. In the United States, the Service Providing sector has increased 1.6 percent since January January 2006 NC Today 17

23 2006 Total: 2,427,300 North Carolina Private Service Providing Industries Leisure & Hospitality Services, 14.1% January 2001 Compared to January 2006 Other Services, 7.2% Transportation, Warehouse & Utilities, 5.1% Wholesale Trade, 6.9% Retail Trade, 17.9% Educational & Health Services, 19.5% Information, 3.1% 2001 Total: 2,296,800 Professional & Business Services, 18.0% Financial Activities, 8.2% Leisure & Hospitality Services, 13.3% Other Services, 7.1% Transportation, Warehouse & Utilities, 5.9% Wholesale Trade, 7.1% Retail Trade, 19.5% Educational & Health Services, 16.9% Information, 3.6% Source: Current Employment Statistics, LMI of ESC Professional & Business Services, 18.6% Financial Activities, 8.0% Note: January 2006 data are preliminary while 2001 data are benchmarked. Educational and Health Services remains the largest Private Service Providing sector with 19.5 percent of the total. January 2006 NC Today 18

24 United States Private Service Providing Industries January 2001 Compared to January Total: 88,886,000 Leisure & Hospitality Services, 13.8% Other Services, 6.1% Transportation, Warehouse & Utilities, 5.5% Wholesale Trade, 6.5% Retail Trade, 17.1% Educational & Health Services, 19.6% Information, 3.4% 2001 Total: 85,701,000 Professional & Business Services, 18.8% Financial Activities, 9.2% Leisure & Hospitality Services, 13.2% Other Services, 6.1% Transportation, Warehouse & Utilities, 5.8% Wholesale Trade, 6.8% Retail Trade, 17.8% Educational & Health Services, 17.8% Information, 4.3% Professional & Business Services, 19.2% Financial Activities, 9.0% Educational and Health Services remains the largest Private Service Providing sector in the United States with 19.6 percent of the total. January 2006 NC Today 19

25 Employment Change in Service Providing Industries January 2005 January 2006 Total: 3,107,700 (Not Seasonally Adjusted) (employment in thousands) Transp., Whse. & Util. Wholesale Trade Retail Trade Information Financial Activities Prof. & Business Educational & Health Leisure & Hospitality Other Services Source: Current Employment Statistics, LMI of ESC Government is excluded in graph. January data are preliminary while 2005 data are benchmarked. Educational and Health Services had the largest over-the-year increase (19,200 jobs or 4.1%) with Ambulatory Health accounting for 8,000 of the jobs. Transportation, Warehousing and Utilities had the only job loss over the year. January 2006 NC Today 20

26 Unemployment Insurance Benefits Paid January 2005 January 2006 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $76,102,992 $67,765,278 $73,747,584 $59,675,882 $67,431,009 $65,337,411 $62,162,036 $73,364,239 $66,089,016 $63,177,082 $68,862,085 $70,592,830 $87,627,937 $20,000,000 $10,000,000 $0 Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan January 2006 Trust Fund Activities UI Activities As of 1/31/2006 UI Trust Fund Balance: -$40,908,397 Federal Loan Balance: $45,329,830 Tax Anticipation Note Payback Balance: $43,907,402 State Reserve Balance: $12,538,065 Source: Employment Services and Unemployment Insurance Reporting, LMI of ESC Includes state Extended Benefits paid where applicable January 2006 NC Today 21 Taxes Collected $41,963,181 Interest Received - Trust Fund $682,847 UI Benefits Paid $87,627,937 Source: Employment Services and Unemployment Insurance Reporting, LMI of ESC North Carolina ESC paid $87,627,937 in Unemployment Insurance (UI) benefits during the month ending 1/31/06; representing an approximate $17.0 million increase from the $70,592,830 paid the previous month ending 12/31/05 and $11.5 million more than the $76,102,992 paid the month ending 1/31/05. During month ending 1/31/06, individuals receiving UI benefits totaled 110,037; which represented an increase of 16,881 when compared to the 93,156 recipients during the month ending 12/31/05 and a decrease of 1,076 from those 111,113 recipients during the month ending 1/31/05. The average UI check during January 2006 was $250.75; December 2005, $248.31; and January 2005, $ The maximum weekly benefit amount is $442. To qualify for UI, the base period wages must be, at the minimum, $3, (six times the 2004 average weekly wage of $ ) ESC began January 2006 with a balance of $42,651,692 in the UI trust fund. During January 2006, $41.9 million was collected in UI taxes and $87.6 million was paid in UI benefits. January 2006 includes benefits paid from the UI Trust Fund for UI benefits for the period December 30, 2005 January 30, December 2005 includes benefits paid from the UI Trust Fund for UI benefits for the period November 30, 2005 December 29, 2005.

27 North Carolina Economic Indicators December 2005 NC Coincident Index, US Leading Index & NC Leading Index (1996=100) 140 NC Leading Index US Leading Index NC Coincident Index Index Jan-00 Apr-00 Jul-00 Oct-00 Jan-01 Apr-01 Jul-01 Oct-01 Jan-02 Apr-02 Jul-02 Oct-02 Years Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Source: Labor Market Information Division, ESC of NC Examples of Coincident Index include: the U.S. Index of Industrial Production, N.C. Total Agricultural Employment, and U.S. Real Retail Sales. The four 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 and the United States Leading Index. January 2006 NC Today 22

28 Attachments A Comparison of Unemployment Rates in North Carolina, The United States and All States, December Unemployment Rate by State...25 A Comparison of Unemployment Rates in North Carolina and Selected Southeastern States, December North Carolina and Neighboring States; Comparison of Civilian Labor Force and Unemployment...27 North Carolina Nonfarm Employment, January January Average Weekly Manufacturing Wage In Selected States December North Carolina Industry as Compared to: Georgia...30 South Carolina...31 Tennessee...32 Mississippi...33 Florida...34 Alabama...35 Virginia...36 Percent Change in Nonfarm Employment by State, December December North Carolina and Neighboring States, Total Nonfarm and Government...38 North Carolina and Neighboring States, Manufacturing and Service Providing...39 Glossary of Terms...40 January 2006 NC Today 23

29 A Comparison of Unemployment Rates In North Carolina, The United States and All States December 2005* (Seasonally Adjusted) 10.0% 9.0% 9.9% 8.0% 7.0% 6.0% 5.0% 4.0% 4.9% 4.9% 4.9% 4.9% 4.9% 3.0% 2.0% 2.7% 18 States 1.0% 28 States 0.0% Hawaii Kansas Massachusetts North Carolina Pennsylvania Mississippi United States States With Rates Higher Than North Carolina ~ California 5.1% ~ Missouri 5.1% ~ New York 5.1% ~ Texas 5.1% ~ Georgia 5.2% ~ Rhode Island 5.2% ~ ~ Washington 5.3% ~ Tennessee 5.4% ~ Illinois 5.5% ~ Indiana 5.5% ~ Oregon 5.7% ~ Ohio 5.9% ~ ~ Kentucky 6.3% ~ Louisiana 6.4% ~ Michigan 6.7% ~ Alaska 6.9% ~ South Carolina 7.0% ~ Mississippi 9.9% ~ Source: Bureau of Labor Statistics, US DOL *Most recent data available for comparison purposes. Data are preliminary rates and have not been benchmarked. January 2006 NC Today 24

30 Source: Bureau of Labor Statistics, US DOL January 2006 NC Today 25

31 A Comparison of Unemployment Rates In North Carolina and Selected Southeastern States December 2005* (Seasonally Adjusted) Mississippi 9.9% South Carolina Louisiana Kentucky 6.4% 6.3% 7.0% Tennessee Georgia North Carolina West Virginia 5.4% 5.2% 4.9% 4.7% Alabama Virginia Florida 3.5% 3.3% 3.3% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% Source: Bureau of Labor Statistics, US DOL *Most recent data available for comparison purposes Rates are Preliminary and not benchmarked. January 2006 NC Today 26

32 North Carolina and Neighboring States Labor Force Data (Seasonally Adjusted) December December 2005 Data are preliminary and not benchmarked Civilian Labor Force 5, , , , , ,500.0 Georgia North Carolina South Carolina Tennessee Virginia 2, ,500.0 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Source: Bureau of Labor Statistics, US DOL Unemployment Georgia North Carolina South Carolina Tennessee Virginia Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Source: Bureau of Labor Statistics, US DOL January 2006 NC Today 27

33 North Carolina Nonfarm Employment January January 2006 (Not Seasonally Adjusted) 4, recession 2001 recession 4,000 3,065,600 Nonfarm Employment 3,500 3,904,100 3,000 In Thousands 2,500 2,000 Service Providing Sector 3,107,700 1,500 2,067,700 Goods Producing Sector 796,400 1, Jan-90 Jul-90 Jan-91 Jul-91 Jan-92 Jul-92 Jan-93 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan ,900 Source: Current Employment Statistics, LMI of ESC Note: January 2006 data are preliminary while data are benchmarked. Since January 1990, employment in the Service Providing sector (including Government) has increased by 50.3 percent or 1,040,000 jobs while the Goods Producing sector has decreased by 20.2 percent or 201,500 jobs. The Service Providing sector made up 67.4 percent of total nonfarm employment in January 1990 compared to 79.6 percent in January The Goods Producing sector made up 32.6 percent of total nonfarm employment in January 1990 compared to 20.4 percent in January January 2006 NC Today 28

34 Average Weekly Manufacturing Wage In Selected States December 2005* Louisiana West Virginia Virginia Kentucky Alabama Mississippi South Carolina Florida North Carolina Georgia Tennessee $ $ $ $ $ $ $ $ $ $ $ $0 $100 $200 $300 $400 $500 $600 $700 $800 * Data are preliminary and not benchmarked. Source: Bureau of Labor Statistics, US DOL Note: Virginia wage data was not available at time of publication. North Carolina s average weekly manufacturing wage decreased by $13.68 from the revised November 2005 wage. Regional states largest industry in Manufacturing during December: 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 January 2006 NC Today 29

35 North Carolina Total: 3,934,300 North Carolina Industry As Compared to Georgia December 2005 Natural Resources & Mining, 0.2% Construction, 5.9% Government, 16.3% Manufacturing, 14.9% Other Services, 4.4% Trade, Transportation, Warehouse & Utilities, 18.8% Leisure & Hospitality Services, 9.4% Information, 1.8% Educational & Health Services, 11.8% Professional & Business Services, 11.5% Financial Activities, 5.0% Georgia Total: 3,997,300 Construction, 5.2% Government, 16.3% Natural Resources & Mining, 0.3% Manufacturing, 11.3% Other Services, 4.0% Trade, Transportation, Warehouse & Utilities, 20.9% Leisure & Hospitality Services, 9.5% Information, 3.0% Educational & Health Services, 10.5% Source: Bureau of Labor Statistics, US DOL Data are Not Seasonally Adjusted and preliminary. Professional & Business Services, 13.3% Financial Activities, 5.7% January 2006 NC Today 30

36 North Carolina Total: 3,934,300 North Carolina Industry As Compared to South Carolina December 2005 Natural Resources & Mining, 0.2% Construction, 5.9% Government, 16.3% Manufacturing, 14.9% Other Services, 4.4% Trade, Transportation, Warehouse & Utilities, 18.8% Leisure & Hospitality Services, 9.4% Information, 1.8% Educational & Health Services, 11.8% Professional & Business Services, 11.5% Financial Activities, 5.0% South Carolina Total: 1,854,600 Government, 17.9% Natural Resources & Mining, 0.2% Construction, 6.1% Manufacturing, 14.3% Other Services, 3.7% Trade, Transportation, Warehouse & Utilities, 19.4% Leisure & Hospitality Services, 11.7% Source: Bureau of Labor Statistics, US DOL Data are Not Seasonally Adjusted and preliminary. Educational & Health Services, 9.9% Professional & Business Services, 10.2% Financial Activities, 5.1% Information, 1.5% January 2006 NC Today 31

37 North Carolina Total: 3,934,300 North Carolina Industry As Compared to Tennessee December 2005 Natural Resources & Mining, 0.2% Construction, 5.9% Government, 16.3% Manufacturing, 14.9% Other Services, 4.4% Trade, Transportation, Warehouse & Utilities, 18.8% Leisure & Hospitality Services, 9.4% Information, 1.8% Educational & Health Services, 11.8% Professional & Business Services, 11.5% Financial Activities, 5.0% Tennessee Total: 2,758,100 Government, 14.9% Natural Resources & Mining, 0.2% Construction, 4.5% Manufacturing, 15.2% Other Services, 3.6% Trade, Transportation, Warehouse & Utilities, 21.7% Leisure & Hospitality Services, 9.7% Source: Bureau of Labor Statistics, US DOL Educational & Health Services, 11.9% Data are Not Seasonally Adjusted and preliminary. Professional & Business Services, 11.2% Information, 1.8% Financial Activities, 5.3% January 2006 NC Today 32

38 North Carolina Total: 3,934,300 North Carolina Industry As Compared to Mississippi December 2005 Natural Resources & Mining, 0.2% Construction, 5.9% Government, 16.3% Manufacturing, 14.9% Other Services, 4.4% Trade, Transportation, Warehouse & Utilities, 18.8% Leisure & Hospitality Services, 9.4% Information, 1.8% Educational & Health Services, 11.8% Professional & Business Services, 11.5% Financial Activities, 5.0% Mississippi Total: 1,109,200 Natural Resources & Mining, 0.8% Construction, 4.5% Manufacturing, 15.8% Government, 21.4% Other Services, 3.4% Trade, Transportation, Warehouse & Utilities, 19.5% Leisure & Hospitality Services, 11.2% Information, 1.3% Source: Bureau of Labor Statistics, US DOL Data are Not Seasonally Adjusted and preliminary. Educational & Health Services, 10.5% Professional & Business Services, 7.5% Financial Activities, 4.1% January 2006 NC Today 33

39 North Carolina Total: 3,934,300 North Carolina Industry As Compared to Florida December 2005 Natural Resources & Mining, 0.2% Construction, 5.9% Government, 16.3% Manufacturing, 14.9% Other Services, 4.4% Trade, Transportation, Warehouse & Utilities, 18.8% Leisure & Hospitality Services, 9.4% Information, 1.8% Educational & Health Services, 11.8% Professional & Business Services, 11.5% Financial Activities, 5.0% Florida Total: 7,945,400 Natural Resources & Mining, 0.1% Construction, 6.8% Government, 13.1% Manufacturing, 5.1% Other Services, 4.3% Trade, Transportation, Warehouse & Utilities, 19.9% Information, 2.2% Leisure & Hospitality Services, 11.6% Source: Bureau of Labor Statistics, US DOL Educational & Health Services, 12.3% Data are Not Seasonally Adjusted and preliminary. Professional & Business Services, 17.9% Financial Activities, 6.7% January 2006 NC Today 34

40 North Carolina Total: 3,934,300 North Carolina Industry As Compared to Alabama December 2005 Natural Resources & Mining, 0.2% Construction, 5.9% Government, 16.3% Manufacturing, 14.9% Other Services, 4.4% Trade, Transportation, Warehouse & Utilities, 18.8% Leisure & Hospitality Services, 9.4% Information, 1.8% Educational & Health Services, 11.8% Professional & Business Services, 11.5% Financial Activities, 5.0% Alabama Total: 1,944,900 Government, 18.6% Natural Resources & Mining, 0.7% Construction, 5.4% Manufacturing, 15.4% Other Services, 4.2% Trade, Transportation, Warehouse & Utilities, 19.7% Leisure & Hospitality Services, 8.6% Source: Bureau of Labor Statistics, US DOL Educational & Health Services, 10.2% Data are Not Seasonally Adjusted and preliminary. Professional & Business Services, 10.6% Information, 1.6% Financial Activities, 5.0% January 2006 NC Today 35

41 North Carolina Total: 3,934,300 North Carolina Industry As Compared to Virginia December 2005 Natural Resources & Mining, 0.2% Construction, 5.9% Government, 16.3% Manufacturing, 14.9% Other Services, 4.4% Trade, Transportation, Warehouse & Utilities, 18.8% Leisure & Hospitality Services, 9.4% Information, 1.8% Educational & Health Services, 11.8% Virginia Total: 3,686,300 Professional & Business Services, 11.5% Financial Activities, 5.0% Government, 17.9% Natural Resources & Mining, 0.3% Construction, 6.7% Manufacturing, 8.1% Other Services, 5.0% Trade, Transportation Warehouse & Utilities 17.9% Leisure & Hospitality Services, 9.3% Information, 2.7% Educational & Health Services, 10.6% Source: Bureau of Labor Statistics, US DOL Data are Not Seasonally Adjusted and preliminary. Professional & Business Services, 16.2% Financial Activities, 5.3% January 2006 NC Today 36

42 January 2006 NC Today 37 Source: Bureau of Labor Statistics, US DOL

43 North Carolina and Neighboring States Employment (Not Seasonally Adjusted) December December 2005 Data are preliminary and not benchmarked Total Nonfarm Employment 4, , , , ,500.0 Georgia North Carolina South Carolina Tennessee Virginia 2, ,500.0 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Source: Bureau of Labor Statistics, US DOL Government Georgia North Carolina South Carolina Tennessee Virginia Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Source: Bureau of Labor Statistics, US DOL January 2006 NC Today 38

44 North Carolina and Neighboring States (Not Seasonally Adjusted) December December 2005 Data are preliminary and not benchmarked Manufacturing Georgia North Carolina South Carolina Tennessee Virginia Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Total Service Providing Nov-05 Dec-05 Source: Bureau of Labor Statistics, US DOL 3, , , ,200.0 Georgia North Carolina South Carolina Tennessee Virginia 1, ,200.0 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Source: Bureau of Labor Statistics, US DOL January 2006 NC Today 39

45 Glossary of Terms Average Hourly Earnings: The average hourly earnings of production workers in manufacturing industries and nonsupervisory 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 baseperiod 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, (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. January 2006 NC Today 40

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 establishment 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. January 2006 NC Today 41

47 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 four current variables are NC Initial Unemployment Insurance Claims, National Leading Index, NC residential Building Permits and NC Average Weekly Manufacturing Hours. 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. January 2006 NC Today 42

48 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); Greensboro/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 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 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 January 2006 NC Today 43

49 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 12 th 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. 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. January 2006 NC Today 44

50 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. January 2006 NC Today 45

51 Prepared By: Employment Security Commission of North Carolina (ESC), Labor Market Information Division (LMI) January 2006 NC Today 46