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Jobless rate hits 19-year high

By Sharon McBrayer | The News Herald

Published: March 19, 2009

Morganton - Burke County's unemployment rate hit 14 percent in January, and the Hickory-Lenoir-Morganton metropolitan area now has the highest unemployment in the state.
Burke's rate in December was 11.7 percent, according to information from the Employment Security Commission of North Carolina.
The reported number of unemployed in the county for January was 5,663.
Rates in all 100 counties in the state experienced an increase in January, with 72 counties having rates at 10 percent or higher.
Part of Burke's unemployment in January was likely due, in part, to Shadowline closing and Viscotec laying off workers.
Keith Sutton with the Morganton office of the employment security commission, said his office has seen layoffs from numerous places. It's not just one company that has driven the numbers up to 14 percent, he said.
"A lot of companies have been impacted by this economy," Sutton said.
The unemployment rate also reflects those whose benefits have been extended, he said.
The last time Burke's rate hit 14 percent was in October 1982, said Pam Davenport, with the commission's labor market.
But there's a difference in the way unemployment numbers were compiled in 1982 and now, Davenport warned. The commission may use a different methodology, steps and information now compared to 1982.
Burke's January rate is certainly the highest since 1990, which uses the same methodology as today.
In much of 2008, the Hickory-Lenoir-Morganton area consistently had the second-highest rate of the 14 metropolitan areas, behind Rocky Mount. The Hickory-Lenoir-Morganton area went from 10.9 percent in December to 13.6 percent in January, while Rocky Mount's rate went from 11.7 percent in December to 13.2 percent in January.
Of Burke's surrounding counties, Caldwell, McDowell, Cleveland and Rutherford County had higher rates in January, with Caldwell's at 14.6 percent, McDowell at 15.5 percent, Cleveland at 14.5 percent and Rutherford at 15.5 percent.
"The Employment Security Commission is continuing to help our customers who come to us in this difficult time seeking jobs and unemployment benefits," said ESC Chairman Moses Carey Jr. "The ESC is paying record amounts of benefits to transitional workers and will distribute over $200 million in benefits from the American Recovery and Reinvestment Act of 2009."
The state rate in January jumped from 8.1 percent in December to 9.7 percent, while the national rate went from 7.2 in December to 7.6 percent.