NC unemployment rate dips slightly during October despite Hurricane Helene job losses

North Carolina’s jobless rate dipped slightly during October to 3.7% as the state continues to experience considerable churn in the private sector, the N.C.

Commerce Department reported Tuesday. Economists had expected the initial round of individuals in western N.C.



temporarily or permanently out of work due to Hurricane Helene damage would show up in the October state rate. The brunt of Helene ravaged the region on Sept. 27-28.

"With Helene hitting North Carolina, we knew the job numbers would be impacted in October," said Michael Walden, an economics professor at N.C. State University.

"But perhaps surprisingly, the state jobless rate actually fell in the month. "Because of the difficulty of surveying people in October, this report should have a big asterisk attached to it, indicating conclusions should be shelved due to the difficulty of accessing people and companies after Helene," Walden said. As has been the pattern since early 2023, there was notable churn among the 10 private-sector categories during October.

In the employer survey, there was an overall 5,500-job month-over-month loss — a 6,100 decline in the private sector and a net gain of 600 government jobs. Six private-sector categories had month over month job losses, led by 4,300 in construction, 2,000 in manufacturing, 1,800 in the other services category. 800 in the lower-wage leisure and hospitality services, 400 in professional and business services, and 200 in financial activities.

Leading the private-sector net gains were 2,800 in education and health services and 500 in trade, transportation and utilities. "We can certainly see the impacts of Helene in the job numbers, with significant job declines in construction, manufacturing, and services," Walden said. "Part of the reason the impact on the jobless rate was muted was drop in the labor force, likely because the survey of households was hindered by the aftermath of the storm.

" Over the past year, the state has had a net gain of 61,800 private-sector and 14,000 government jobs. Topping the private sector is 27,700 in educational and health services, 16,800 in leisure and hospitality services, 12,000 in professional and business services and 6,400 in construction. Meanwhile, there was a loss of 4,100 in manufacturing and a loss of 2,400 in trade, transportation and utilities.

In the household survey, there was an overall 1,866 decline in the labor force from September, representing 763 fewer employed North Carolinians and 1,103 fewer listed as newly unemployed and looking for work. Taking a year-over-year look, the state’s labor force is up 0.2%, or by 12,893.

That represents a net gain of 4,529 people listed as employed and an increase of 8,364 of those considered unemployed and looking for work. When people leave the work force, they are no longer considered as unemployed. Gov.

Roy Cooper issued Oct. 16 an emergency executive order than nearly doubles the maximum weekly unemployment benefit amount — from $350 to $600 — for North Carolinians whose job has been affected by Helene. Among the 39 affected counties are Alleghany, Ashe, Forsyth, Surry, Watauga, Wilkes and Yadkin counties.

However, the number of state unemployment benefit weeks remains capped at 12, per state law approved in 2013 by the Republican legislative super-majority. Only eight states have a lower weekly maximum unemployment benefit than North Carolina. The N.

C. Division of Employment Security estimates it may take between two and three weeks for impacted individuals to see the impact in their weekly benefit checks. The benefits for eligible claimants will be retroactive to Sept.

29, with adjustment payments being issued for benefit weeks going back to that date. Workers who lived or worked in the 39 impacted counties, and are out of work due to the disaster, will qualify for up to 14 weeks of federal benefits. Those benefits will be paid through March 29 under the federal Disaster Unemployment Assistance program.

[email protected] 336-727-7376 @rcraverWSJ Get the latest local business news delivered FREE to your inbox weekly..