nc today october 2006 Photo courtesy of NC Division of Tourism, Film and Sports development. Linn Cove Viaduct, Blue Ridge Parkway, NC

nc today october 2006 Photo courtesy of NC Division of Tourism, Film and Sports development. Linn Cove Viaduct, Blue Ridge Parkway, NC

September Highlights North Carolina Unemployment Rate (Seasonally Adjusted) 5.0 5.4 5.3 4.0 3.0 2.0 4.8 4.9 North Carolina s September unemployment rate, at 4.9 percent, increased 0.1 of a percentage point from the previous month s 4.8 percent, and is 0.4 percentage points lower than the 5.3 percent recorded a year ago. 1.0 0.0 Aug. 2005 Sept. 2005 Aug. 2006 Sept. 2006 Source: Local Area Unemployment Statistics, LMI of ESC 2006 data are preliminary while 2005 data are benchmarked. (Numbers in Thousands) Total Nonfarm Employment (Seasonally Adjusted) 4,020.0 +10.7 The number of nonfarm jobs increased by 10,700 from August to September, while gaining 70,300 jobs over the year. 3,990.0 3,960.0 3,930.0 +12.4 3,990.9 4,001.6 3,900.0 3,918.9 3,931.3 Source: Current Employment Statistics, LMI of ESC 2006 data are preliminary while 2005 data are benchmarked. 3,870.0 Aug. 2005 Sept. 2005 Aug. 2006 Sept. 2006 I October 2006 NC Today

October 2006 NC Today II

Table Of Contents North Carolina/United States Civilian Labor Force Data... 1 North Carolina/United States Labor Force Comparison Change, September 2005 - September 2006... 2 North Carolina/United States Employment Comparison Change, September 2005 - September 2006... 3 North Carolina/United States Unemployment Comparison Change, September 2005 - September 2006... 4 North Carolina/United States Unemployment Rates Comparison Change, September 2005 - September 2006... 5 Announced Business Closings and Permanent Layoffs, September 2006... 6 Total Nonfarm Employment in North Carolina, September 2006... 7 Total Nonfarm Employment in North Carolina, September 2005 - September 2006... 8 Total Nonfarm Employment Change in North Carolina, August 2006 - September 2006... 9 North Carolina Sector Employment as Percentage of Total Employment, September 2006...10 Employment Change by Major Industries, September 2005 - September 2006... 11 Total Manufacturing Employment in North Carolina, September 2005 - September 2006... 12 Manufacturing Employment in North Carolina Durable & Non Durable Goods Comparison, September 2001 - September 2006... 13 Employment Change in Manufacturing Industries, September 2005 - September 2006... 14 North Carolina Manufacturing Industries, September 2001 Compared to September 2006... 15 United States Manufacturing Industries, September 2001 Compared to September 2006... 16 North Carolina Manufacturing, September 2005 - September 2006... 17 Compensation Per Hours Worked, South Atlantic Region, 2nd Quarter 2006... 18 Total Service Providing Employment in North Carolina, September 2005 - September 2006... 19 North Carolina Private Service Providing Industries, September 2001 Compared to September 2006...20 United States Private Service Providing Industries, September 2001 Compared to September 2006...21 Employment Change in North Carolina s Private Service Providing Industries, September 2005 - September 2006... 22 Unemployment Insurance Benefits Paid, September 2005 - September 2006... 23 September 2006 Trust Fund Activities... 23 North Carolina Economic Indicators, August 2006... 24 Attachments... 25 III October 2006 NC Today

October 2006 NC Today IV

North Carolina Civilian Labor Force Data Month Ago Year Ago North Carolina (Model Based Data) Seasonally Adjusted September 2006 August 2006 September 2005 January 2001 Numeric Change Percent Change Numeric Change Percent Change Labor Force 4,466,723 4,443,773 4,362,237 4,150,295 22,950 0.52 104,486 2.40 Employment 4,249,229 4,230,342 4,129,400 3,965,955 18,887 0.45 119,829 2.90 Unemployment 217,494 213,431 232,837 184,340 4,063 1.90-15,343-6.59 Unemployment Rate 4.9 4.8 5.3 4.4 0.1 xxx -0.4 xxx Not Seasonally Adjusted Labor Force 4,461,330 4,473,120 4,359,913 4,163,377-11,790-0.26 101,417 2.33 Employment 4,260,919 4,261,673 4,148,690 3,959,708-754 -0.02 112,229 2.71 Unemployment 200,411 211,447 211,223 203,669-11,036-5.22-10,812-5.12 Unemployment Rate 4.5 4.7 4.8 4.9-0.2 xxx -0.3 xxx Note: Numbers may not add due to rounding. 2006 data are preliminary while other data are benchmarked. Source: Local Area Unemployment Statistics, LMI of ESC United States Civilian Labor Force Data Month Ago Year Ago United States (CPS Data) September 2006 August 2006 September 2005 January 2001 Numeric Change Percent Change Numeric Change Percent Change Seasonally Adjusted Labor Force 151,799,000 151,698,000 150,083,000 143,800,000 101,000 0.07 1,716,000 1.14 Employment 144,850,000 144,579,000 142,435,000 137,778,000 271,000 0.19 2,415,000 1.70 Unemployment 6,949,000 7,119,000 7,648,000 6,023,000-170,000-2.39-699,000-9.14 Unemployment Rate 4.6 4.7 5.1 4.2-0.1 xxx -0.5 xxx Not Seasonally Adjusted Labor Force 151,635,000 152,465,000 149,838,000 142,828,000-830,000-0.54 1,797,000 1.20 Employment 145,010,000 145,379,000 142,579,000 136,181,000-369,000-0.25 2,431,000 1.71 Unemployment 6,625,000 7,086,000 7,259,000 6,647,000-461,000-6.51-634,000-8.73 Unemployment Rate 4.4 4.6 4.8 4.7-0.2 xxx -0.4 xxx 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 The seasonally adjusted civilian labor force for North Carolina reached another high with a 0.5 percent rise from August 2006. Increases in both employment (0.4%) unemployment (1.9%) contributed to this. The unemployment rate inched upward to 4.9 percent. The United States seasonally adjusted civilian labor force was relatively unchanged from August 2006. Employment increased 0.2 percent and unemployment declined 2.4 percent. The national unemployment rate decreased slightly to 4.6 percent. 1 October 2006 NC Today

4,480,000 North Carolina/United States Labor Force Comparison Change September 2005 September 2006 (Seasonally Adjusted) NC 4,460,000 4,440,000 4,420,000 4,400,000 4,380,000 4,362,237 4,368,824 4,370,484 4,369,451 4,362,082 4,374,036 4,378,767 4,396,045 4,403,553 4,394,216 4,429,530 4,443,773 4,466,723 4,360,000 4,340,000 4,320,000 152,000,000 Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. 2005 2006 US 151,500,000 151,000,000 150,500,000 150,083,000 150,043,000 150,183,000 150,153,000 150,114,000 150,449,000 150,652,000 150,811,000 150,991,000 151,321,000 151,534,000 151,698,000 151,799,000 150,000,000 149,500,000 Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. 2005 2006 Source: Local Area Unemployment Statistics, LMI of ESC Percentages are rounded. 2006 data are preliminary while 2005 data are benchmarked. Since January 2006, the national seasonally adjusted civilian labor force has grown 1.1 percent with steady over-the-month increases of 0.1 to 0.2 percent. North Carolina s growth has been faster at 2.4 percent year to date. The statewide labor force also increased at a faster pace over the year (2.4 percent) and over the last five years (7.2 percent). The national labor force grew by 1.1 percent over the year and 5.4 percent since September 2001. North Carolina s labor force participation rate rose to 66.5 percent over the month, the highest it has been since November 2003. The United States rate remained steady at 66.2 percent for the fourth consecutive month. According to the Current Population Survey (CPS), the percentage of North Carolinians not in the labor force increased by 2.5 percent over the month, not seasonally adjusted. This pool also grew across the nation, but at a more modest 1.4 percent. October 2006 NC Today 2

North Carolina/United States Employment Comparison Change September 2005 September 2006 (Seasonally Adjusted) NC 4,260,000 4,240,000 4,220,000 4,200,000 4,180,000 4,160,000 4,140,000 4,129,400 4,137,678 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 4,120,000 4,100,000 Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. 2005 2006 US 145,000,000 144,500,000 144,000,000 143,500,000 143,000,000 142,500,000 142,435,000 142,625,000 142,611,000 142,779,000 143,074,000 143,257,000 143,641,000 143,688,000 143,976,000 144,363,000 144,329,000 144,579,000 144,850,000 142,000,000 Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. 2005 2006 Source: Local Area Unemployment Statistics, LMI of ESC Percentages are rounded. 2006 data are preliminary while 2005 data are benchmarked. North Carolina s seasonally adjusted employment reached a record high with a 0.4 percent over-the-month increase. United States employment rose 0.2 percent. Upward trends in employment are also noticeable in the over-the-year and over-five-years comparisons. From September 2005, statewide employment increased 2.9 percent and 8.5 percent since September 2001. Over-the-year national employment rose 1.7 percent and 5.8 percent over the last five years. North Carolina s employment-to-population ratio climbed to its highest level since August 2001, increasing to 63.3 percent. The United States rate remained steady for a second consecutive month at 63.1 percent. According to the CPS, full-time employment decreased across the state by 2.1 percent and nationally by 1.0 percent over the month, while part-time employment increased 3.9 and 3.5 percent, respectively. 3 October 2006 NC Today

North Carolina/United States Unemployment Comparison Change September 2005 September 2006 (Seasonally Adjusted) 240,000 235,000 230,000 225,000 220,000 215,000 210,000 205,000 200,000 195,000 190,000 185,000 232,837 231,146 224,908 223,826 189,449 202,349 195,236 189,826 204,643 200,245 214,004 213,431 217,494 Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. 2005 2006 US NC 7,650,000 7,550,000 7,450,000 7,350,000 7,250,000 7,150,000 7,050,000 6,950,000 7,648,000 7,418,000 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 6,850,000 Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. 2005 2006 Source: Local Area Unemployment Statistics, LMI of ESC 2006 data are preliminary while 2005 data are benchmarked. After declining in August 2006, North Carolina s seasonally adjusted unemployment increased 1.9 percent over the month. Unemployment for the United States decreased for the second consecutive month with a 2.4 percent drop. Unemployment fell 6.6 percent statewide and 9.1 percent nationally over the year. Since September 2001, unemployment has dropped by 13.8 percent in North Carolina and 2.7 percent in the United States. Nationally, the percent of job losers, job leavers and entrants to the labor force declined over the month, according to the CPS. Across the state, there was a decrease in job losers, but increases in the percent of job leavers and entrants. October 2006 NC Today 4

North Carolina/United States Unemployment Rates Comparison Change September 2005 September 2006 (Seasonally Adjusted) 7.0 6.5 6.5 6.4 NC US 6.0 5.5 5.0 4.5 4.0 6.1 5.0 5.7 6.1 5.4 5.3 5.3 5.1 5.3 4.9 5.1 5.1 5.0 4.9 4.7 4.3 4.8 4.6 4.7 4.7 4.5 4.3 4.6 4.6 4.6 4.6 4.8 4.8 4.8 4.7 4.9 4.6 Sept. 01 Sept. Sept. Sept. 02 03 04 Prior Years Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. 2005 2006 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. Month North Carolina Change United States Change September 2005 5.3-0.1 5.1 0.2 October 5.3 0.0 4.9-0.2 November 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 2006 4.9 0.1 4.6-0.1 Source: Local Area Unemployment Statistics, LMI of ESC Note: 2006 data are preliminary while 2005 data are benchmarked. Seasonally adjusted, North Carolina s unemployment rate rose to its highest level in 2006. The slight rise to 4.9 percent makes the rate 0.3 of a percentage point higher than the United States 4.6 percent rate. Over the year, North Carolina s unemployment rate has declined 0.4 of a percentage point and fallen 1.2 percentage points since September 2001. The national unemployment rate decreased 0.5 of a percentage point over the year, and 0.4 of a percentage point over the last five years. 5 October 2006 NC Today

Announced Business Closings And Permanent Layoffs September 2006 Industry Number of Establishments Number Affected Agriculture, Forestry, Fishing & Hunting 1 Unknown Construction 2 100 Manufacturing 12 1,317 Wholesale Trade 6 295 Retail Trade 21 91 Transportation & Warehousing 2 205 Finance & Insurance 2 Unknown Real Estate & Rental & Leasing 1 7 Professional, Scientific & Technical Services 1 6 Administration & Support, Waste Management & Remediation Services 2 4 Health Care & Social Assistance 8 196 Arts, Entertainment & Recreation 1 3 Accommodation & Food Services 9 203 Other Services 1 Unknown Source: LMI of ESC The Manufacturing sector led with the number of workers affected by business closings and layoffs, followed by Wholesale Trade. A majority of Manufacturing closings were attributed to foreign trade competition. October 2006 NC Today 6

Total Nonfarm Employment in North Carolina September 2006 (Numbers in Thousands) (Seasonally Adjusted) Change NAICS Industry September P August R September B August 2006 to September 2006 2006 2006 2005 Net Percent Total Nonfarm 4,001.6 3,990.9 3,931.3 10.7 0.3 Construction 243.2 242.4 233.7 0.8 0.3 Manufacturing 556.6 559.5 565.1-2.9-0.5 Trade, Transportation & Utilities 735.3 736.1 735.1-0.8-0.1 Information 77.4 78.2 77.2-0.8-1.0 Financial Activities 206.6 205.1 198.2 1.5 0.7 Professional & Business Services 457.3 455.9 448.1 1.4 0.3 Educational & Health Services 485.0 485.2 467.0-0.2 0.0 Leisure & Hospitality Services 368.2 363.3 354.5 4.9 1.3 Government 684.4 681.9 667.7 2.5 0.4 P Preliminary; R Revised; B Benchmarked Other* 4.7% Construction 6.1% Government 17.1% Manufacturing 13.9% Leisure & Hospitality Services 9.2% Trade, Transportation & Utilities 18.4% Educational & Health Services 12.1% Information 1.9% *Other includes Natural Resources, Mining and Other Services. Professional & Business Services 11.4% Financial Activities 5.2% Seasonally adjusted, total nonfarm employment increased by 10,700 jobs over the month and gained 70,300 over the year. Leisure and Hospitality Services reported the largest net (4,900) and percentage (1.3%) over the month gain. Educational and Health Services had the largest net (18,000) over-the-year increase. 7 October 2006 NC Today

(Numbers in Thousands) 4,040.0 Total Nonfarm Employment in North Carolina September 2005 September 2006 (Not Seasonally Adjusted) 4,000.0 3,960.0 3,920.0 3,880.0 3,957.6 3,965.0 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 4,019.1 3,840.0 3,800.0 Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Source: Current Employment Statistics, LMI of ESC 2005 2006 September 2006 data are preliminary. Earlier 2006 data are revised and 2005 data are benchmarked. The September 2006 employment level of 4,019,100 was 61,500 (1.6%) higher than last September. The United States September 2005 to September 2006 employment increase was 1.3 percent. The United States has had a 3.0 percent employment increase from September 2001 to September 2006. North Carolina has had a 3.3 percent employment increase over the same period. The following table depicts North Carolina Total Nonfarm Employment since September 2001: Year Employment September 2001 3,891,400 September 2002 3,853,100 September 2003 3,801,900 September 2004 3,888,200 September 2005 3,957,600 September 2006 4,019,100 October 2006 NC Today 8

Total Nonfarm Employment Change In North Carolina August 2006 to September 2006 (Not Seasonally Adjusted) (Numbers in Thousands) August September 800.0 700.0 600.0 500.0 400.0 300.0 200.0 100.0-0.4 245.5 245.1-2.8 560.7 557.9-3.3 739.7 736.4-0.6-0.8 207.6 206.8 0.0 461.0 461.0 +3.9 480.8 484.7 381.4-8.1 373.3 648.6 +39.9 688.5 0.0 Construction 77.8 77.2 Manufacturing Trade, Transportation & Utilities Information Financial Activities Professional & Business Services Educational & Health Services Leisure & Hospitality Services Government Source: Current Employment Statistics, LMI of ESC. September 2006 data are preliminary while August 2006 data are revised. Government had the largest net (39,900) over-the-month employment gain due to the seasonal employment increase in Local Government Educational Services. 9 October 2006 NC Today

North Carolina Sector Employment As Percentage of Total Employment September 2006 (Not Seasonally Adjusted) Total Nonfarm Employment 4,019,100 Natural Resources & Mining 0.2% Construction 6.1% Government 17.1% Manufacturing 13.9% Wholesale Trade 4.2% Other Services 4.5% Retail Trade 10.9% Leisure & Hospitality Services 9.3% Educational & Health Services 12.1% Professional & Business Services 11.5% Transportation, Warehouse & Utilities 3.2% Information 1.9% Financial Activities 5.1% Source: Current Employment Statistics, LMI of ESC September data are preliminary. Government is the largest employing group with 17.1 percent of total nonfarm employment. Combining Wholesale Trade and Retail Trade makes Trade the second largest employing group with 15.1 percent of total nonfarm employment. October 2006 NC Today 10

Employment Change by Major Industries September 2005 September 2006 (Not Seasonally Adjusted) (Numbers in Thousands) Financial Activities +7.1 Trade +1.3 Trans., Warehouse & Utilities +0.9 Prof. & Business Services +9.9 Manufacturing -9.4 Leisure & Hospitality Services +11.2 Information +0.7 Government +10.3 Ed. & Health Services +16.3 Construction +9.1 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 2006 2005 (Employment in Thousands) Source: Current Employment Statistics, LMI of ESC September 2006 data are preliminary while 2005 data are benchmarked. Educational and Health Services had the largest net over-the-year increase, gaining 16,300 (3.5%) jobs. The only over-the-year decrease was in Manufacturing (9,400, or 1.7%). 11 October 2006 NC Today

(Numbers in Thousands) 568 Total Manufacturing Employment in North Carolina September 2005 September 2006 (Not Seasonally Adjusted) 566 567.3 564 565.6 565.4 562 564.2 563.5 560 558 559.4 559.6 561.3 561.9 561.3 559.4 560.7 556 557.9 554 552 Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. 2005 2006 Source: Current Employment Statistics, LMI of ESC September 2006 data are preliminary. Earlier 2006 data are revised, while 2005 data are benchmarked. Not seasonally adjusted manufacturing employment declined 1.7 percent or 9,400 jobs from September 2005. The United States had a 0.1 percent increase in manufacturing employment over the year. The following table depicts North Carolina s manufacturing employment since September 2001: Year Manufacturing Employment September 2001 689,200 September 2002 638,600 September 2003 588,700 September 2004 579,300 September 2005 567,300 September 2006 557,900 October 2006 NC Today 12

Manufacturing Employment in North Carolina Durable & Non Durable Goods Comparison September 2001 through September 2006 (Not Seasonally Adjusted) 700.0 600.0 Total 689,200 Total 638,600 Total 588,700 Total 579,300 Total 567,300 Total 557,900 500.0 400.0 344.3 49.96% 325.1 50.91% 296.2 281.7 271.5 262.4 50.31% 48.63% 47.86% 47.03% 300.0 200.0 100.0 344.9 50.04% 313.5 49.09% 292.5 297.6 295.8 295.5 49.69% 51.37% 52.14% 52.97% 0.0 2001 2002 2003 2004 2005 2006 Durable Goods Non Durable Goods Source: Current Employment Statistics, LMI of ESC September 2006 data are preliminary while other data are benchmarked. 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. 13 October 2006 NC Today

Employment Change in Manufacturing Industries September 2005 September 2006 (Not Seasonally Adjusted) Total Manufacturing: 557,900 70.0-7.8 (Employment in Thousands) 60.0 50.0 40.0 30.0 20.0 +0.2 +0.9-0.1 +0.6-0.3 +2.0-3.1 +0.8-0.6-2.9-0.2-0.7 +0.3 10.0 0.0 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 Sep-05 Sep-06 Source: Current Employment Statistics, LMI of ESC September 2006 data are preliminary while 2005 data are benchmarked. The Textile industry combining Textile Mills and Textile Product Mills has the largest number of manufacturing jobs in North Carolina (58,400), but also had the largest over-the-year employment decline (7,800). The largest net over-the-year manufacturing increase was in Transportation Equipment (2,000 or 5.4%). Other manufacturing industries with over-the-year increases: Fabricated Metal Product, 900; Food Manufacturing, 800; Computer and Electronic Product, 600; Plastics and Rubber Manufacturing, 300; and Wood Product, 200. October 2006 NC Today 14

North Carolina Manufacturing Industries September 2001 Compared to September 2006 2006 (Not Seasonally Adjusted) Total: 557,900 All Other 11.5% Wood Product 4.9% Fabricated Metal Product 7.6% Plastics & Rubber 6.0% Machinery 5.6% Chemical 7.8% Computer & Electronic Product 7.1% Printing 2.6% Apparel Mfg. 3.8% Electrical Equip. & Appliance 4.5% Textiles 10.5% Transportation Equip. 7.0% 2001 Total: 689,200 Plastics & Rubber 5.5% Beverage & Tobacco Product 2.7% All Other 9.9% Food 9.2% Wood Product 4.0% Furniture & Rel. Product 9.2% Fabricated Metal Product 5.9% Machinery 5.2% Chemical 7.2% Printing 2.5% Computer & Electronic Product 7.9% Apparel Mfg. 5.5% Electrical Equip. & Appliance 5.3% Transportation Equip. 5.0% Textiles 15.3% Furniture & Rel. Product 10.3% Beverage & Tobacco Product 2.8% Food 7.7% Source: Current Employment Statistics, LMI of ESC 2006 data are preliminary while 2001 data are benchmarked. North Carolina has lost 19.1 percent of its manufacturing jobs since September 2001. Transportation Equipment (4,100), Pharmaceutical and Medicine (1,700) within Chemical Manufacturing, and Fabricated Metal Product (1,400) were the only manufacturing industries with employment increases over the five-year period. 15 October 2006 NC Today

United States Manufacturing Industries September 2001 Compared to September 2006 2006 Total: 14,259,000 Wood Product 3.8% (Not Seasonally Adjusted) Fabricated Metal Product 10.9% Machinery 8.3% All Other 16.0% Computer & Electronic Product 9.3% 2001 Plastics & Rubber 5.5% Chemical 6.3% Printing 4.5% Total: 16,185,000 Apparel Mfg. 1.7% Textiles 2.5% Wood Product 3.6% All Other 15.7% Beverage & Tobacco Product 1.4% Food 10.5% Fabricated Metal Product 10.1% Furniture & Rel. Product 3.8% Machinery 8.2% Electrical Equip. & Appliance 3.1% Transportation Equip. 12.4% Computer & Electronic Product 10.3% Plastics & Rubber 5.5% Electrical Equip. & Appliance 3.4% Chemical 5.9% Printing 4.7% Transportation Equip. 11.9% Apparel Mfg. 2.5% Textiles 3.2% Beverage & Tobacco Product 1.3% Food 9.8% Furniture & Rel. Product 3.9% Source: Bureau of Labor Statistics 2006 data are preliminary while 2001 data are benchmarked. Manufacturing employment in the United States has decreased by 11.9 percent since September 2001. All major manufacturing industries in the United States lost jobs during the five-year period. October 2006 NC Today 16

North Carolina Manufacturing September 2005 September 2006 (Not Seasonally Adjusted) Average Weekly Hours Average Hourly Earnings Average Weekly Earnings September 2005 40.2 $14.35 $576.87 October 40.9 $14.41 $589.37 November 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 2006 39.9 $14.78 $589.72 Source: Current Employment Statistics, LMI of ESC Data not adjusted for inflation and refers to production workers only. September 2006 data are preliminary while earlier 2006 data are revised and 2005 data are benchmarked. Over the month, manufacturing average hourly earnings increased by $0.26, average weekly earnings increased by $10.37, and average weekly hours were unchanged. Over the month, Durable Goods average hourly earnings increased by $0.25, average weekly earnings increased by $8.83, and average weekly hours decreased by 0.1 (6 minutes). Over the month, Nondurable Goods average hourly earnings increased by $0.26, average weekly earnings increased by $11.39, and average weekly hours increased by 0.1 (6 minutes). 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. 17 October 2006 NC Today

Compensation Per Hours Worked South Atlantic Region 2nd Quarter 2006 Total Compensation: $23.32 June 2006 June 2004 Change Cost Percent Cost Percent Cost Percent Total Compensation $23.32 100.0% $21.25 100.0% $2.07 0.0% Wages and Salaries $16.86 72.3% $15.46 72.8% $1.40-0.5% Total Benefits $6.45 27.7% $5.78 27.2% $0.67 0.5% Paid Leave $1.52 6.5% $1.33 6.3% $0.19 0.2% Vacation $0.78 3.3% $0.66 3.1% $0.12 0.2% Holiday $0.51 2.2% $0.46 2.1% $0.05 0.1% Sick $0.18 0.8% $0.16 0.8% $0.02 0.0% Other $0.06 0.2% $0.05 0.3% $0.01-0.1% Supplemental Pay $0.56 2.4% $0.51 2.4% $0.05 0.0% Overtime and Premium $0.23 1.0% $0.21 1.0% $0.02 0.0% Shift Differentials $0.05 0.2% $0.05 0.2% $0.00 0.0% Nonproduction Bonuses $0.28 1.2% $0.25 1.2% $0.03 0.0% Insurance $1.65 7.1% $1.45 6.8% $0.20 0.3% Life $0.04 0.2% $0.04 0.2% $0.00 0.0% Health $1.52 6.5% $1.33 6.3% $0.19 0.2% Short-term Disablity $0.05 0.2% $0.04 0.2% $0.01 0.0% Long-term Disablitiy $0.04 0.2% $0.03 0.2% $0.01 0.0% Retirement and Savings $0.75 3.2% $0.65 3.1% $0.10 0.1% Defined Benefit $0.31 1.3% $0.27 1.3% $0.04 0.0% Defined Contribution $0.44 1.9% $0.39 1.8% $0.05 0.1% Legally Required Benefits $1.97 8.4% $1.81 8.5% $0.16-0.1% Social Security and Medicare $1.41 6.1% $1.30 6.1% $0.11 0.0% Social Security $1.14 4.9% $1.04 4.9% $0.10 0.0% Medicare $0.28 1.2% $0.25 1.2% $0.03 0.0% Federal Unemployment Insurance $0.03 0.1% $0.03 0.2% $0.00-0.1% State Unemployment Insurance $0.10 0.4% $0.10 0.5% $0.00-0.1% Workers Compensation $0.42 1.8% $0.38 1.8% $0.04 0.0% *May not sum due to rounding 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. The South Atlantic Region s Total Compensation of $23.32 is $3.54 below the national average of $26.86 per hour worked. Wages & Salaries reported during 2nd Quarter 2006 comprise 72 percent of Total Compensation. Insurance ($1.65), Paid Leave ($1.52) and Legally Required Benefits ($1.97) have increased more than any other benefits provided by employers since 2nd Quarter 2004. Employers now pay a combined $0.55 cents more for these benefits than they did two years ago. However, Insurance alone added $0.20, comprising 9.8 percent of Wages & Salaries, followed by Paid Leave, which added $0.19 and comprised 9.0 percent of Wages & Salaries. Within Insurance, Health ($1.52) increased $0.19 since 2nd Quarter 2004, while Life, Short- and Long-Term Insurance combined rose only $0.02. Legally Required Benefits ($1.97) while the most expensive benefit in the South Atlantic Region, comprising 8.4 percent of Total Compensation are lower than the national average of $2.17. Within Legally Required Benefits, Social Security added $0.10; Medicare, $0.03; Workers Compensation, $0.04, while Federal Unemployment Insurance and State Unemployment Insurance Benefits saw no change. An increase from 2nd Quarter 2004 of $0.10 was reported in Retirement & Savings and $0.05 in Supplemental Pay. October 2006 NC Today 18

Total Service Providing Employment In North Carolina September 2005 September 2006 (Not Seasonally Adjusted) (Numbers in Thousands) 3,220 3,200 3,180 3,160 3,140 3,120 3,100 3,080 3,147.5 3,157.4 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 3,209.4 3,060 3,040 Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. 2005 2006 Source: Current Employment Statistics, LMI of ESC September 2006 data are preliminary while earlier 2006 data are revised and 2005 data are benchmarked. Over the year, the Service Providing sector increased by 2.0 percent or 61,900 jobs. For the United States, the Service Providing sector has increased 1.3 percent since September 2005. The following table depicts North Carolina s Service Providing employment since September 2001: Year Employment September 2001 2,964,100 September 2002 2,986,600 September 2003 2,993,900 September 2004 3,078,900 September 2005 3,147,500 September 2006 3,209,400 19 October 2006 NC Today

North Carolina Private Service Providing Industries September 2001 Compared to September 2006 2006 Total: 2,520,900 Leisure & Hospitality Services 14.8% Other Services 7.2% Transportation, Warehouse & Utilities 5.1% Wholesale Trade 6.7% Retail Trade 17.4% Educational & Health Services 19.2% Information 3.1% 2001 Total: 2,320,800 Other Services 7.3% Professional & Business Services 18.3% Financial Activities 8.2% Transportation, Warehouse & Utilities 5.7% Leisure & Hospitality Services 14.2% Wholesale Trade 7.0% Retail Trade 19.1% Educational & Health Services 17.4% Information 3.4% Professional & Business Services 17.8% Financial Activities 8.1% Source: Current Employment Statistics, LMI of ESC 2006 data are preliminary while 2001 data are benchmarked. Educational and Health Services is the largest Private Service Providing sector with 19.2 percent of the total. October 2006 NC Today 20

United States Private Service Providing Industries September 2001 Compared to September 2006 2006 Total:91,308,000 Leisure & Hospitality Services 14.5% Other Services 6.1% Transportation, Warehouse & Utilities 5.5% Wholesale Trade 6.4% Retail Trade 16.5% Educational & Health Services 19.4% Information 3.3% 2001 Total: 86,961,000 Other Services, 6.1% Professional & Business Services 19.2% Transportation, Warehouse & Utilities 5.7% Financial Activities 9.1% Wholesale Trade 6.6% Leisure & Hospitality Services 14.1% Retail Trade 17.4% Educational & Health Services 18.1% Information 4.1% Financial Activities 9.0% Professional & Business Services 18.9% Source: Bureau of Labor Statistics 2006 data are preliminary while 2001 data are benchmarked. Educational and Health Services is the largest Private Service Providing sector in the United States with 19.4 percent of the total. 21 October 2006 NC Today

Employment Change in North Carolina s Private Service Providing Industries September 2005 September 2006 (Not Seasonally Adjusted) Total: 2,520,900 500.0-0.4 +9.9 +16.3 (Employment in Thousands) 400.0 300.0 200.0 +0.9 +1.7 +7.1 +11.2 +4.2 100.0 +0.7 0.0 Transp., Whse. & Util. Wholesale Trade Retail Trade Information Financial Activities Prof. & Business Educational & Health Leisure & Hospitality 2005 2006 Other Services Source: Current Employment Statistics, LMI of ESC Government is excluded in graph. 2006 data are preliminary while 2005 data are benchmarked. Educational and Health Services had the largest over-the-year increase (16,300 jobs or 3.5%) with Ambulatory Health accounting for 5,900 of these jobs. October 2006 NC Today 22

Unemployment Insurance Benefits Paid September 2005 September 2006 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $66,089,016 $63,177,082 $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 $20,000,000 $10,000,000 $0 Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. 2005 2006 September 2006 Trust Fund Activities UI Activities As of 9/30/2006 UI Trust Fund Balance: $206,048,633 Federal Loan Balance: $0.00 Tax Anticipation Note Payback Balance: $0.00 State Reserve Balance: $38,285,479 Taxes Collected $4,519,243 Interest Received - Trust Fund $2,448,536 UI Benefits Paid $62,434,371 Source: Employment Services and Unemployment Insurance Reporting, LMI of ESC North Carolina ESC paid $62,434,371 in Unemployment Insurance (UI) benefits during the month of September 2006, representing a $9.9 million decrease (13.7%) from the $72,319,172 paid during August 2006, and $3.7 million (5.6%) less than the $66,089,016 paid during September 2005. During the month ending Sept. 30, 2006, individuals receiving UI benefits totaled 78,061, which represented a decrease of 1,743 when compared to the 79,804 recipients during the month ending Aug. 31, 2006, and an increase of 1,900 from those 76,161 recipients during the month ending Sept. 30, 2005. The average UI check during September 2006 was $261.42; August 2006, $259.85; and September 2005, $253.68. 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.) ESC began September 2006 with a balance of $262,452,468 in the UI Trust Fund. During September 2006, $4.5 million was collected in UI taxes and $62.4 million was paid in UI benefits. September 2006 includes benefits paid from the UI Trust Fund for the period Aug. 31, 2006 Sept. 28, 2006. August 2006 includes benefits paid from the UI Trust Fund for the period July 31, 2006 Aug. 30, 2006. 23 October 2006 NC Today

North Carolina Economic Indicators August 2006 NC Leading Index, NC Coincident Index & US Leading Index (1996=100) 145 NC Leading Index NC Coincident Index US Leading Index 135 125 115 105 95 Jan-00 May-00 Sep-00 Jan-01 May-01 Sep-01 Jan-02 May-02 Sep-02 Jan-03 May-03 Sep-03 Jan-04 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 May-06 Index Years 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, New Orders for Total Capital Goods and New Orders for Non-Defense Goods produced monthly by US Census. October 2006 NC Today 24

Attachments A Comparison of Unemployment Rates in North Carolina, The United States and All States, August 2006...26 Unemployment Rate by State, August 2006...27 A Comparison of Unemployment Rates in North Carolina and Selected Southeastern States, August 2006...28 North Carolina and Neighboring States; Comparison of Civilian Labor Force and Unemployment...29 North Carolina Nonfarm Employment, March 2001 - September 2006...30 Manufacturing Change in States With Largest Employment, August 2001 Compared to August 2006...31 Comparison of North Carolina s Recovery From Last Two Recessions, NC Manufacturing Employment...32 Average Weekly Manufacturing Wage In Selected States, August 2006...33 North Carolina Industry Composition as Compared With: Georgia...34 South Carolina...35 Tennessee...36 Mississippi...37 Florida...38 Alabama...39 Virginia...40 Percent Change in Nonfarm Employment by State, August 2005 - August 2006...41 North Carolina and Neighboring States Employment, Total Nonfarm and Government...42 North Carolina and Neighboring States Employment, Manufacturing and Total Service Providing...43 Glossary of Terms...44 25 October 2006 NC Today

A Comparison of Unemployment Rates In North Carolina, The United States and All States August 2006* (Seasonally Adjusted) 7.0% 6.0% 7.1% 5.0% 4.0% 4.8% 4.8% 4.8% 4.7% 3.0% 2.0% 1.0% 2.8% 28 States Below 19 States Above 0.0% Hawaii Colorado Kansas North Carolina Mississippi United States States With Rates Higher Than North Carolina ~ California 4.9% ~ Massachusetts 4.9% ~ Pennsylvania 4.9% ~ Missouri 5.1% ~ Texas 5.1% ~ Washington 5.2% ~ ~ Arkansas 5.3% ~ Indiana 5.3% ~ New Jersey 5.3% ~ Oregon 5.5% ~ Rhode Island 5.6% ~ Ohio 5.7% ~ Tennessee 5.7% ~ ~ Kentucky 5.8% ~ West Virginia 5.9% ~ Alaska 6.5% ~ South Carolina 6.5% ~ Michigan 7.1% ~ Mississippi 7.1% ~ Source: Bureau of Labor Statistics, US DOL *Most recent data available for comparison purposes. In July 2006, 17 states had unemployment rates higher than North Carolina s rate. Six states, including North Carolina, were tied with the national rate of 4.8 percent. October 2006 NC Today 26

Source: Bureau of Labor Statistics, US DOL Note: Data are preliminary. 27 October 2006 NC Today

A Comparison of Unemployment Rates In North Carolina and Selected Southeastern States August 2006* (Seasonally Adjusted) Mississippi 7.1% South Carolina 6.5% West Virginia Kentucky Tennessee 5.8% 5.7% 5.9% North Carolina Georgia 4.6% 4.8% Alabama Louisiana Florida 3.5% 3.4% 3.3% Virginia 3.2% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Source: Bureau of Labor Statistics, US DOL *Most recent data available for comparison purposes October 2006 NC Today 28

North Carolina and Neighboring States Labor Force Data August 2005 - August 2006 (Seasonally Adjusted) Civilian Labor Force 5,000.0 4,500.0 4,000.0 3,500.0 3,000.0 2,500.0 Georgia North Carolina South Carolina Tennessee Virginia 2,000.0 1,500.0 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Source: Bureau of Labor Statistics, US DOL Unemployment 280.0 260.0 240.0 220.0 200.0 180.0 160.0 140.0 Georgia North Carolina South Carolina Tennessee Virginia 120.0 100.0 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Source: Bureau of Labor Statistics, US DOL 29 October 2006 NC Today

North Carolina Nonfarm Employment March 2001 - September 2006 (Not Seasonally Adjusted) 4,500 2001 recession 4,000 Nonfarm Employment 3,500 4,019,100 3,928,300 3,000 In Thousands 2,500 2,000 2,962,900 Service Providing Sector 3,209,400 1,500 Goods Producing Sector 809,700 1,000 500 965,400 0 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 Source: Current Employment Statistics, LMI of ESC September 2006 data are preliminary while earlier 2006 data are revised and all other years are benchmarked. Since March 2001, employment in the Service Providing sector (including Government) has increased by 8.3 percent or 246,500 jobs, while the Goods Producing sector has decreased by 16.1 percent or 155,700 jobs. The Service Providing sector made up 75.4 percent of Total Nonfarm Employment in March 2001, compared to 79.9 percent in September 2006. The Goods Producing sector made up 24.6 percent of Total Nonfarm Employment in March 2001, compared to 20.1 percent in September 2006. October 2006 NC Today 30

Manufacturing Change in States With Largest Employment August 2001 Compared to August 2006 (Not Seasonally Adjusted) (Employment in Thousands) State August 2001 August 2006 Percent Change Michigan 813.1 645.1-20.66% New Jersey 397.7 315.9-20.57% New York 702.8 562.6-19.95% Massachusetts 381.8 306.6-19.70% North Carolina 694.1 561.0-19.18% Pennsylvania 816.0 671.8-17.67% South Carolina 309.1 256.0-17.18% Illinois 806.9 679.0-15.85% Ohio 943.2 807.1-14.43% California 1,786.1 1,529.1-14.39% Connecticut 223.9 193.5-13.58% Arkansas 225.9 197.1-12.75% Virginia 339.5 298.5-12.08% Missouri 341.9 300.9-11.99% Texas 1,022.1 907.1-11.25% Tennessee 450.4 402.8-10.57% Kentucky 288.8 260.1-9.94% Washington 319.3 287.6-9.93% Georgia 493.3 451.6-8.45% Florida 435.1 398.5-8.41% Wisconsin 562.5 516.9-8.11% Alabama 324.2 300.9-7.19% Minnesota 378.5 353.8-6.53% Indiana 612.8 575.7-6.05% Oregon 219.2 213.7-2.51% Iowa 240.8 236.3-1.87% Source: Bureau of Labor Statistics August 2006 data are preliminary while 2001 data are benchmarked. 31 October 2006 NC Today

Comparison of North Carolina s Recovery From Last Two Recessions North Carolina Manufacturing Employment (Seasonally Adjusted) 5% July 1990: 822,300 March 2001: 727,000 0% % change from beginning of recession -5% -10% -15% September 1995: 818,400 September 2006: 556,600-20% -25% 1 2 3 4 5 6 7 8 9 10 1112 13 14 15 16 1718 1920212223242526272829303132333435363738394041424344454647484950 51525354555657 585960616263646566 Months from beginning of recession 1990-91 Recession 2001 Recession September 2006 data are preliminary while previous years data are benchmarked. North Carolina has lost 23 percent (170,400 net) of its manufacturing jobs since March 2001. October 2006 NC Today 32

Average Weekly Manufacturing Wage In Selected States August 2006 Louisiana West Virginia Kentucky Virginia Alabama South Carolina Florida $751.02 $734.18 $680.62 $677.28 $649.24 $624.42 $598.37 Georgia North Carolina Tennessee Mississippi $571.83 $559.22 $546.55 $541.73 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 $800 Source: Bureau of Labor Statistics, US DOL Regional states largest industry in Manufacturing during July: 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 33 October 2006 NC Today

North Carolina Total: 3,990,400 North Carolina Industry Composition As Compared With Georgia August 2006 Government 16.2% Natural Resources & Mining 0.2% Construction 6.1% Manufacturing 14.1% Other Services 4.7% Leisure & Hospitality Services 9.6% Trade, Transportation & Utilities 18.5% Information 1.9% Georgia Total: 4,109,400 Educational & Health Services 12.0% Professional & Business Services 11.5% Financial Activities 5.2% Government 16.1% Natural Resources & Mining 0.3% Construction 5.4% Manufacturing 11.0% Other Services 3.9% Trade, Transportation & Utilities 21.2% Leisure & Hospitality Services 9.5% Information 2.8% Source: Bureau of Labor Statistics, US DOL Data are not seasonally adjusted and preliminary. Educational & Health Services 10.7% Professional & Business Services 13.5% Financial Activities 5.6% October 2006 NC Today 34

North Carolina Total: 3,990,400 North Carolina Industry Composition As Compared With South Carolina August 2006 Government 16.2% Natural Resources & Mining 0.2% Construction 6.1% Manufacturing 14.1% Other Services 4.7% Leisure & Hospitality Services 9.6% Trade, Transportation & Utilities 18.5% Information 1.9% Educational & Health Services 12.0% South Carolina Total: 1,908,000 Professional & Business Services 11.5% Financial Activities 5.2% Natural Resources & Mining 0.3% Construction 6.7% Government 17.2% Manufacturing 13.4% Other Services 3.9% Trade, Transportation & Utilities 19.3% Leisure & Hospitality Services 11.2% Information 1.5% Source: Bureau of Labor Statistics, US DOL Data are not seasonally adjusted and preliminary. Educational & Health Services 9.9% Professional & Business Services 11.1% 35 Financial Activities 5.5% October 2006 NC Today

North Carolina Total: 3,990,400 North Carolina Industry Composition As Compared With Tennessee August 2006 Government 16.2% Natural Resources & Mining 0.2% Construction 6.1% Manufacturing 14.1% Other Services 4.7% Leisure & Hospitality Services 9.6% Trade, Transportation & Utilities 18.5% Information 1.9% Educational & Health Services 12.0% Tennessee Total: 2,783,900 Government 14.6% Natural Resources & Mining 0.2% Professional & Business Services 11.5% Construction 4.6% Financial Activities 5.2% Manufacturing 14.5% Other Services 3.7% Trade, Transportation & Utilities 21.8% Leisure & Hospitality Services 10.1% Educational & Health Services 12.1% Source: Bureau of Labor Statistics, US DOL Professional & Business Services 11.4% Information 1.8% Financial Activities 5.2% Data are not seasonally adjusted and preliminary. October 2006 NC Today 36

North Carolina Total: 3,990,400 North Carolina Industry Composition As Compared With Mississippi August 2006 Government 16.2% Natural Resources & Mining 0.2% Construction 6.1% Manufacturing 14.1% Other Services 4.7% Leisure & Hospitality Services 9.6% Trade, Transportation & Utilities 18.5% Information 1.9% Educational & Health Services 12.0% Mississippi Total: 1,138,600 Professional & Business Services 11.5% Financial Activities 5.2% Natural Resources & Mining 0.8% Construction 5.0% Manufacturing 15.5% Government 21.0% Other Services 3.4% Trade, Transportation & Utilities 19.8% Leisure & Hospitality Services 10.6% Information 1.2% Source: Bureau of Labor Statistics, US DOL Educational & Health Services 10.7% Professional & Business Services 7.9% Financial Activities 4.1% Data are not seasonally adjusted and preliminary. 37 October 2006 NC Today

North Carolina Total: 3,990,400 North Carolina Industry Composition As Compared With Florida August 2006 Government 16.2% Natural Resources & Mining 0.2% Construction 6.1% Manufacturing 14.1% Other Services 4.7% Leisure & Hospitality Services 9.6% Trade, Transportation & Utilities 18.5% Information 1.9% Educational & Health Services 12.0% Professional & Business Services 11.5% Financial Activities 5.2% Florida Total: 8,056,600 Government 13.6% Natural Resources & Mining 0.1% Construction 7.7% Manufacturing 4.9% Other Services 4.4% Trade, Transportation & Utilities 19.8% Leisure & Hospitality Services 11.3% Information 2.1% Source: Bureau of Labor Statistics, US DOL Data are not seasonally adjusted and preliminary. Educational & Health Services 12.0% Professional & Business Services 17.3% Financial Activities 6.8% October 2006 NC Today 38

North Carolina Total: 3,990,400 North Carolina Industry Composition As Compared With Alabama August 2006 Government 16.2% Natural Resources & Mining 0.2% Construction 6.1% Manufacturing 14.1% Other Services 4.7% Leisure & Hospitality Services 9.6% Trade, Transportation & Utilities 18.5% Information 1.9% Educational & Health Services 12.0% Alabama Total: 1,972,300 Professional & Business Services 11.5% Financial Activities 5.2% Government 18.1% Natural Resources & Mining 0.7% Construction 5.6% Manufacturing 15.3% Other Services 4.1% Leisure & Hospitality Services 8.8% Trade, Transportation & Utilities 19.4% Information 1.6% Source: Bureau of Labor Statistics, US DOL Educational & Health Services 10.4% Data are not seasonally adjusted and preliminary. Professional & Business Services 11.0% 39 Financial Activities 5.0% October 2006 NC Today

North Carolina Total: 3,990,400 North Carolina Industry Composition As Compared With Virginia August 2006 Government 16.2% Natural Resources & Mining 0.2% Construction 6.1% Manufacturing 14.1% Other Services 4.7% Leisure & Hospitality Services 9.6% Trade, Transportation & Utilities 18.5% Information 1.9% Virginia Total: 3,723,400 Educational & Health Services 12.0% Professional & Business Services 11.5% Financial Activities 5.2% Government 17.2% Other Services 5.0% Natural Resources & Mining 0.3% Construction 7.1% Manufacturing 8.0% Trade, Transportation & Utilities 17.7% Leisure & Hospitality Services 9.6% Information 2.4% Source: Bureau of Labor Statistics, US DOL Data are not seasonally adjusted and preliminary. Educational & Health Services 10.4% Professional & Business Services 17.0% Financial Activities 5.3% October 2006 NC Today 40

Source: Bureau of Labor Statistics, US DOL Note: Data are preliminary. 41 October 2006 NC Today

North Carolina and Neighboring States Employment August 2005 - August 2006 (Not Seasonally Adjusted) Total Nonfarm Employment 4,500.0 4,000.0 3,500.0 3,000.0 2,500.0 Georgia North Carolina South Carolina Tennessee Virginia 2,000.0 1,500.0 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Source: Bureau of Labor Statistics, US DOL Government 750.0 700.0 650.0 600.0 550.0 500.0 450.0 400.0 Georgia North Carolina South Carolina Tennessee Virginia 350.0 300.0 250.0 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 October 2006 NC Today 42 Source: Bureau of Labor Statistics, US DOL

North Carolina and Neighboring States Employment August 2005 - August 2006 (Not Seasonally Adjusted) Manufacturing 600.0 550.0 500.0 450.0 400.0 350.0 300.0 Georgia North Carolina South Carolina Tennessee Virginia 250.0 200.0 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Source: Bureau of Labor Statistics, US DOL Total Service Providing 3,700.0 3,200.0 2,700.0 2,200.0 Georgia North Carolina South Carolina Tennessee Virginia 1,700.0 1,200.0 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Source: Bureau of Labor Statistics, US DOL 43 October 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. October 2006 NC Today 44

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. 45 October 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 four current variables are NC Initial Unemployment Insurance Claims, National Leading Index, NC residential Building Permits and NC Average Weekly Manufacturing Hours. October 2006 NC Today 46

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); 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 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 47 October 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 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. October 2006 NC Today 48

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. 49 October 2006 NC Today

Prepared By: Employment Security Commission of North Carolina (ESC), Labor Market Information Division (LMI) www.ncesc.com October 2006 NC Today 50