County Unemployment Remains Low

Orange County's unemployment rate was 3.3 percent in August, decidedly lower than the N.C. rate of 6.3 percent and the national rate, which was 5.7 percent.

The county's unemployment rate is the 10th lowest of all 100 North Carolina counties.

Incoming county Chamber of Commerce President Margaret Cannell is the former assistant director of the county's Economic Development Commission. She said the state drop in unemployment indicates the beginning of an economic recovery from the recent period of recession.

She also explained that the recession affects Orange County's unemployment less because 44.1 percent of the workforce is made up of state employees, which stabilizes unemployment rates.

"State government is much less likely to lay off workers than private enterprises," Cannell said. "It protects employees."

Harry Payne, chairman of the Employment Security Commission of North Carolina, said Orange County's unemployment rate is kept low because of the state-regulated jobs available at UNC and UNC Hospitals.

The campus and the hospital account for almost 16,000 jobs between them in Orange County, making them the two top employers in the county.

The industries in the area, such as the medicinal, pharmaceutical and campus support industries also bolster employment.

Payne is quick to point out that Orange County is the exception for the area. Most of the counties surrounding Orange County have two or three times the rate of unemployment.

"North Carolina is the number one NAFTA-impacted state in the country," Payne said.

North Carolina, especially in the Piedmont belt in which Orange County is located, has historically been an industrial area. The state specializes in textiles, apparel, furniture and fiber optics, Payne said.

Employment in these industries has greatly decreased because of NAFTA because the labor can be performed more cheaply out of the country.

Payne said Orange County has not been affected by NAFTA in the way its neighbors have. While the rest of the state has been suffering from a rise in unemployment this year, Orange County has maintained a steady rate of employment.

In fact, some say parts of Orange County have been experiencing quite the opposite.

"The Town of Carrboro is experiencing one of its better years in recent times," said Des'ree White, personnel director for Carrboro. "Employment turnover rate has been very low."

But Payne, while optimistic about the drop in unemployment, thinks there are other pressing issues that are not represented in unemployment numbers.

"There is a growing issue of underemployment," he said. "Someone who may have been making $15 a hour last year may now be making $9."

The City Editor can be reached at citydesk@unc.edu.