Bladen County sees month-over-month improvement in jobless rate

ELIZABETHTOWN — Bladen County saw a slight improvement in its unemployment rate in December, according to the latest figures released last week by the North Carolina Department of Commerce.

In December — the latest month for which data is available — the Commerce Department showed that the county decreased its unemployment rate from 4.2% in November to 3.9%. That represents a three-month decline from October’s high of 4%; the year-over-year rate improved very slightly from the December 2022 rate of 4%.

Unemployment rates (not seasonally adjusted) decreased in 95 of North Carolina’s counties in December 2023, increased in three, and remained unchanged in two. Scotland County — Robeson County’s closest neighbor to the west — had the highest unemployment rate at 5.9% while Buncombe County had the lowest at 2.4%. All 15 of the state’s metro areas experienced rate decreases. Among the metro areas, Rocky Mount had the highest rate at 4.5% while Asheville had the lowest at 2.5%. The not seasonally adjusted statewide rate was 3.2%.

A total of 21 counties had higher unemployment rates than Bladen County.

When compared to the same month last year, not seasonally adjusted unemployment rates decreased in 51 counties, increased in 26, and remained unchanged in 23. Seven metro areas experienced rate decreases over the year, three increased, and five remained unchanged.

The number of workers employed statewide (not seasonally adjusted) decreased in December by 28,036 to 5,058,871, while those unemployed decreased by 10,084 to 167,065. Since December 2022, the number of workers employed statewide increased 95,776, while those unemployed increased 3,277.

Bladen County saw an increase of 2,690 in its labor pool from November to December, but the year-over-year change saw an increase of just 2,252 people available to work.

According to a statement from the Commerce Department, “It is important to note that employment estimates are subject to large seasonal patterns; therefore, it is advisable to focus on over-the-year changes in the not seasonally adjusted estimates.”

The next unemployment update is scheduled for mid-March when the statewide unemployment rate for January 2024 will be made available.

U.S. unemployment trend

An Associated Press report on Thursday stated that the number of Americans filing for jobless benefits rose last week to the highest level in 11 weeks, though layoffs remained at historically low levels.

Applications for unemployment benefits climbed to 224,000 for the week ending Jan. 27, an increase of 9,000 from the previous week, the Labor Department reported Thursday.

The four-week average of claims, a less volatile measure, rose by 5,250, to 207,750.

Weekly unemployment claims are seen as a proxy for the number of U.S. layoffs in a given week. They have remained at extraordinarily low levels despite efforts by the U.S. Federal Reserve to cool the economy.

The Federal Reserve raised its benchmark rate 11 times beginning in March of 2022 in an effort to squelch the four-decade high inflation that took hold after an unusually strong economic rebound from the COVID-19 recession of 2020.

Though inflation has eased considerably in the past year, the Labor Department reported recently that overall prices rose 0.3% from November to December and were up 3.4% from 12 months earlier, a sign that the Fed’s drive to slow inflation to its 2% target will likely remain a bumpy one.

The Fed has left rates alone at its last four meetings.

As the Fed rapidly jacked up rates in 2022, most analysts predicted that the U.S. economy would tip into recession. But the economy and the job market remained surprisingly resilient, with the unemployment rate staying below 4% for 23 straight months, the longest such streak since the 1960s.

Though layoffs remain at low levels, there has been an uptick in job cuts recently across technology and media. Google parent company Alphabet, eBay, TikTok and the Los Angeles Times have all recently announced layoffs.

Outside of tech and media, UPS, Macy’s and Levi’s also recently cut jobs.

Overall, 1.9 million Americans were collecting jobless benefits during the week that ended Jan. 20, an increase of 70,000 from the previous week. That’s the most since mid-November.

U.S. Hiring Burst

The nation’s employers delivered a stunning burst of hiring to begin 2024, adding 353,000 jobs in January in the latest sign of the economy’s continuing ability to shrug off the highest interest rates in two decades.

Friday’s government report showed that last month’s job gain — roughly twice what economists had predicted — topped the December gain of 333,000, a figure that was itself revised sharply higher. The unemployment rate stayed at 3.7%, just above a half-century low.

Wages rose unexpectedly fast in January, too. Average hourly pay climbed a sharp 0.6% from December, the fastest monthly gain in nearly two years, and 4.5% from January 2023. The strong hiring and wage growth could complicate or delay the Federal Reserve’s intention to start cutting interest rates later this year.

The latest gains showcased employers’ willingness to keep hiring to meet steady consumer spending. It comes as the intensifying presidential campaign is pivoting in no small part on views of President Joe Biden’s economic stewardship. Public polls show widespread dissatisfaction largely because even though inflation has sharply slowed, most prices remain well above pre-pandemic levels. Some recent surveys, though, show public approval gradually improving.

“America’s economy is the strongest in the world,” Biden said Friday. “Today, we saw more proof, with another month of strong wage gains and employment gains of over 350,000 in January, continuing the strong growth from last year. ‘’

This week, the Fed took note of the economy’s durability, with Chair Jerome Powell saying “the economy is performing well, the labor market remains strong.” The central bank made clear that while it’s nearing a long-awaited shift toward cutting interest rates, it’s in no hurry to do so.

The details in Friday’s jobs report pointed to broad hiring gains across the economy. Professional and business services, a category that includes managers and technical workers, added 74,000 jobs. Healthcare companies added 70,000, retailers 45,000, governments at all levels 36,000 and manufacturers 23,000.

The unemployment rate has now come in below 4% for two straight years, the longest such streak since the 1960s.

“Overall, the labor market remains strong and continues to defy expectations of a softening,’’ said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. “For Fed officials, these data strongly support patience on rate cuts. Policymakers will be in no rush to lower rates if job and wage growth continue to be robust over coming months.’’

Acting Labor Secretary Julie Su brushed aside any concerns that last month’s wage growth might prove inflationary.

“Wage growth has now been consistently beating inflation,” Su told The Associated Press. “Working people and families have more money in their pockets. They have more security.’’

Julia Pollak, chief economist at the job marketplace ZipRecruiter, noted that not everything in the January report was consistent with gangbuster job growth. She pointed out, for example, that Americans worked an average of 34.1 hours a week last month, the lowest such figure since 2010 excluding the COVID-19 recession.

“When consumer demand slackens, companies often cut workers’ hours before they cut payroll,” Pollak said. “Today’s reading could be a warning sign that demand for workers is softening and that job cuts are looming.’’

That said, she suggested that the decline in work hours might simply reflect January winter storms that kept some people away from work.

To fight inflation, the Fed raised its benchmark rate 11 times beginning in March 2022. The higher borrowing costs were widely expected to boost unemployment and likely cause a recession. Yet the economy has managed to deliver enough job growth to avoid a downturn without accelerating inflation pressures. Inflation cooled throughout 2023, making it likelier that the Fed would achieve a “soft landing” — taming inflation without derailing the economy.

January’s blowout job gain is all but sure to cause the Fed to take a cautious approach toward cutting its key interest rate, which affects many consumer and business loans. A March rate cut now seems definitely off the table.

A series of high-profile layoff announcements, from the likes of UPS, Google and Amazon, have raised some concerns about whether they might herald the start of a wave of job cuts. Yet measured against the nation’s vast labor force, the recent layoffs haven’t been significant enough to make a dent in the overall job market. Historically speaking, layoffs are still low, hiring is still solid and the unemployment rate is still consistent with a healthy economy.

Indeed, some companies are still struggling to fill positions. Ryan Parnow, general manager of Blue Rocket LLC, in Coralville, Iowa, said that hiring workers to do commercial and residential cleaning remains a struggle even though the company is raising pay and offering year-end bonuses, ranging from $750 to $2,000, for new hires as well as existing staffers.

For a window washer job it posted a few weeks ago, Blue Rocket brought in six applicants for interviews, including one who walked out in the middle of the conversation. The others rejected job offers. Now, the company has to start again from scratch.

“It frustrating,” Parnow said.” I am spending more time on the job site.”

While jobs are plentiful in most sectors of the economy, those that offer attractive perks — like the ability to work from home — are drawing particular interest. Among the beneficiaries have been Anthony Pappaly, who began looking for a job in corporate communications or public relations after leaving the Coast Guard in November.

“I was noticing new job postings all the time,’’ said Pappaly, 30. “I also noticed just a swarm of people going to the same jobs … especially the hybrid jobs or the work-from-home jobs.’’

Pappaly landed at Upbring, a Texas nonprofit that runs programs to help children across the state. He works from home most days and likes the flexibility to occasionally visit his mother in California and work from her home.

Upbring, with 1,100 employees, has managed to fill jobs by increasing its recruiting staff, offering work-from-home options where possible, raising pay and surveying employees about their top priorities, said Carolyn Paganoni, who oversees its human resources staff.

Competition for top talent remains tough, said David Lewis, an executive at Wed Society, an Oklahoma-based media franchise brand that promotes wedding vendors. To compete for job applicants, the company has raised pay by up to 15% in the past two years.

“It’s costing more money to find top talent,” Lewis said. “If you’re looking for sheer number of applicants, it’s up. But what it seems to be is people that are currently employed looking to trade up as opposed to unemployed people needing a job.”