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State's jobless rate remains at 11% for July
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By Monica Chen

mchen@heraldsun.com; 419-6636

DURHAM -- The state's unemployment rate stayed at 11 percent from June to July.

Seasonally adjusted employment decreased by 12,997 workers to 4,039,946, the state Unemployment Security Commission said in a report Friday. Meanwhile, unemployment decreased by 4,853 workers, to just under half a million. Since July 2008, unemployment has increased statewide by 209,024 people.

Non-farm employment dropped by 26,400 jobs over the past month. The unemployment rate a year ago was 6.3 percent.

"Everybody is looking for the bottom of the recession," ESC spokesman Andy James said. "I hope we can see the end for that, but it's still going to be a couple months before we know."

The U.S. unemployment rate for July was 9.4 percent. North Carolina is among the top 10 states with the highest unemployment rates nationally, and ranked second in job losses behind California in over-the-month change.

The government sector lost the greatest number of jobs in July, shedding 21,300 positions. Manufacturing also lost 5,100 jobs, and the trade sector shed 3,800 positions.

Since the start of the recession in December 2007, North Carolina's labor force has increased by 0.2 percent, and unemployment has increased by 120 percent. The state has shed jobs mostly in manufacturing, trade, transportation & utilities and construction, but industries previously thought to be more resilient during recessions have also had mass layoffs, such as professional & business services.

"The bad news is that you've got thousands of people who are going to be coming off unemployment benefits of all types in the next several months," James said. "Hopefully, people are actively engaging us to help them."

Through state sources and extensions by the federal government, the maximum number of weeks a worker can collect benefits was 79 weeks. For many of those affected in the first wave of layoffs in late 2007/early 2008, those benefits are coming to an end.

Initial claims for unemployment insurance, taken by those who've recently lost their jobs, fell 3,516 from June and totaled 102,391 in July. Fifty-eight percent of initial claims for July were attached to a payroll, meaning there is a possibility for those employees to be called back to their jobs.

The state's unemployment rate has stayed at or near 11 percent since February, when it was 10.7 percent. The high so far this year has been in May, when it stood at 11.1 percent.

Durham County posted an 8.4 percent jobless rate for June, up from May's 8.1 percent. June's rate was the highest in the county since 1973. Durham's jobless rate a year ago was 4.9 percent.

County unemployment numbers for July will be released Friday.
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