BOONE—Western North Carolina’s economy increased 0.7 percent in February, recovering much of the 1.5 percent decline that occurred in January.

According to the Western North Carolina Economic Index compiled at Appalachian State University, the region regained its economic footing in February with strong job growth and widespread declines in unemployment.

“The region stumbled at the start of the year, but it recovered a bit in February,” said Todd Cherry, the Harlan E. Boyles Professor in Appalachian’s Walker College of Business and a Faculty Fellow at the Institute of Emerging Issues at North Carolina State University. “There are signs the economy may be losing some steam, but there has yet to be any shift in long-term trends.”

Seasonally adjusted employment for WNC increased 0.75 percent in February, recovering from a January decline. Watauga and Polk counties had the largest job growth for the month. Graham and Swain counties had the largest losses.

The seasonally adjusted rate of unemployment for the region decreased 0.3 percentage points in February to 4.7 percent, slightly higher than state and national rates. The adjusted state unemployment rate fell 0.1 points to 4.5 percent. The national employment rate was down 0.1 points to 4.5 percent.

“The decline in regional unemployment was widespread with all but two of the region’s 25 counties posting a drop in unemployment,” Cherry said.

Ten counties recorded rates below the state and national average. Watauga and Henderson counties had the lowest rates at 3.40 and 3.43 respectively.

Five counties had rates above 6.0 percent, with Mitchell and Rutherford counties posting the highest rates at 7.33 and 7.02.

The metro areas in the region faired better than the rural counties in terms of unemployment. While the rural areas saw a 0.1 percentage point increase in unemployment to 5.4 percent, Asheville’s unemployment rate was 3.4 percent (down 0.1 percentage points) and the Hickory-Morganton-Lenoir unemployment rate dropped 0.8 points to 5.6 percent.

Seasonally adjusted claims for unemployment insurance, a leading indicator of unemployment, decreased 39.6 percent across the region.  Initial claims decreased 7.7 percent in Asheville, and increased 21.5 percent in the Hickory-Morganton-Lenoir area.

The Western North Carolina Index and Report provides a monthly account of economic conditions for Western North Carolina. It typically is released the fifth week following each month.

The report is compiled and written by Cherry, John W. Dawson from the Department of Economics, and Richard Crepeau from the Department of Geography and Planning.

The index and report is a cooperative effort by AdvantageWest North Carolina, and Appalachian’s Walker College of Business and the Appalachian Regional Development Institute.