BOONE—Western North Carolina’s economy grew a modest 0.2 percent in November, continuing the pattern of slow growth that has plagued the region for the past six months.

According to the current Western North Carolina Economic Index compiled at Appalachian State University, the regional economy has slowed to an annual growth rate of 1.2 percent over the past four months. The national economy grew 1.6 percent during the third quarter of 2006.

“While the regional economy slowed considerably in the second half of the year, it is still moving forward, albeit at a weak pace,” said Todd Cherry, a professor of economics in Appalachian’s Walker College of Business and coauthor of the index.

While 19 of the 25 WNC counties had positive job growth in November, the largest gains in employment were in the central-west area of the region. “The employment gains were not felt by everyone.  Hickory, in particular, had a rough month,” Cherry said.

Seasonally adjusted employment for WNC increased 0.24 percent in November, the fifth monthly gain in the last six months. Statewide employment increased 0.30 percent for the month.

The seasonally adjusted rate of unemployment for the WNC region increased 0.2 percentage points in November to 4.9 percent. The national and statewide adjusted unemployment rates also increased 0.2 points to 4.9 percent. WNC’s November unemployment rate is 0.3 points lower than 12 months ago.

Unemployment in the rural WNC counties increased 0.1 points to 5.2 percent in November. Unemployment rates also increased in the region’s metro areas for the month: up 0.1 points to 3.6 percent in Asheville and up 0.6 points to 6.3 percent in Hickory-Morganton-Lenoir.

The rise in adjusted unemployment was widespread across the region, with 20 of the 25 WNC counties experiencing higher unemployment rates.

Polk, Jackson and Watauga counties had the lowest unemployment rates in November (3.26, 3.29 and 3.33), while Caldwell, Rutherford and McDowell counties had the highest (8.50, 7.31 and 6.52).

Swain and Yancey counties had the largest declines in unemployment rates (0.11 and 0.10 pts), while Caldwell and Burke counties had the largest increases (1.67 and 0.54 pts).

Seasonally adjusted initial claims for unemployment insurance in the region, a leading indicator of unemployment, increased 15.8 percent in November. Initial claims increased sharply in the metro areas–47.5 percent in Asheville and 30.5 percent in Hickory-Morganton-Lenoir.

“The region’s metro areas’ higher unemployment and sharp increase in initial claims for unemployment insurance indicates we may see additional increases in unemployment for these areas,” Cherry said.

For more information, visit www.business.appstate.edu/wncindex.asp.
The WNC Economic Index and Report provides a monthly account of economic
conditions for Western North Carolina. It typically is released the fifth week following the end of each month.

The WNC Economic Index and Report is provided by the Department of Economics in Appalachian State University’s Walker College of Business. Cherry is assisted by coauthors John Dawson of the Department of Economics and Rich Crepeau of the Department of Geography and Planning.

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