May 12, 2006

Region’s Economy Rebounds in March

BOONE—Western North Carolina’s economy increased 0.8 percent in March, the largest monthly increase in 10 months. The regional economy grew at an annual rate of 3.6 percent during the first quarter of 2006, according to data complied in the Western North Carolina Economic Index prepared at Appalachian State University.

“The regional numbers rebounded strongly in March,” said Todd Cherry, author of the report. Cherry is an economist and the Harlan E. Boyles Professor in Appalachian’s Walker College of Business.

“The strong numbers in March counter the weakness observed in January and put us back on a trend of solid growth,” he said.

Seasonally adjusted employment for the region increased 0.48 percent in March, the highest level of employment in recent years. Statewide employment increased 0.3 percent.

Eighteen of the region’s 25 counties had positive job growth, with the largest gains in employment occurring in the foothill counties. The largest job losses occurred in Alleghany, Ashe and Watauga counties.

“Job creation and unemployment declines were widespread throughout the region,” Cherry said. “Employment numbers for the region reached the highest level in many years. This is a welcome outcome in the foothill counties, which have often struggled with the region’s highest unemployment.”

The seasonally adjusted rate of unemployment for the region decreased 0.3 percentage points to 4.7 percent. The adjusted unemployment rate for the state decreased 0.1 points to 4.5 percent, while the national unemployment rate was 4.7 percent for the month.

Unemployment within the region’s rural counties declined 0.2 points, and dropped 0.1 points to 3.6 percent in Asheville. Unemployment also was down in the Hickory-Morganton-Lenoir area, dropping 0.2 points to 5.8 percent.

Every county, except Caldwell County, had lower unemployment rates than 12 months ago. Rutherford County has the region’s highest unemployment rate at 8.11 percent. Jackson County had the lowest rate at 2.96 percent.

Seasonally adjusted initial claims for unemployment insurance, a leading indicator of unemployment, fell 15.2 percent in March.

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 report uses seasonally adjusted numbers which differ from the absolute numbers often reported. Seasonally adjusted numbers are used because they generally better represent the underlying structure of the economy.

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 co-authors John Dawson of the Department of Economics and Rich Crepeau of the Department of Geography and Planning.

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