Summer break skews jobs report

Paul B. Johnson, The High Point Enterprise, N.C.
·2 min read

Jul. 29—HIGH POINT — The summer break from school appears to have skewed the latest local unemployment report.

Jobless rates increased from May to June in 99 of 100 counties, the N.C. Department of Commerce reported Wednesday. The only county posting a decrease was tourism-dependent Dare County at the Outer Banks.

Local unemployment rates typically rise after the school year ends because of the number of school employees who work nine-month contracts.

Government employment plunged for the month as schools were dismissed for the summer break in early June. In the Greensboro-High Point metropolitan area, the government sector posted a monthly loss of 4,900 jobs, or 11.5%.

However, private sector categories such as manufacturing, professional and business services and leisure and hospitality recorded gains for the month.

"More teachers will have found jobs in late June and early July," said Mike McCully, associate professor of economics at High Point University. "Next month's report will likely be more positive."

The city of High Point unemployment rate rose from 5.8% in May to 6.3% in June. But the jobless level has turned noticeably from the 11.7% rate in June 2020 when the coronavirus pandemic was throttling the economy.

"The Greensboro/High Point area is still much better off than a year ago," McCully told The High Point Enterprise.

When compared to June 2020, jobless rates declined in all North Carolina counties, according to the state Commerce Department.

Since June 2020, the number of workers employed statewide has increased by 376,701, while the number unemployed has decreased by 185,399, the Commerce Department reports.

However, the state has yet to recover all the jobs lost from the pandemic-related shutdowns that began in March 2020. More than 4.93 million state residents had jobs in February 2020, compared to 4.79 million in June 2021.

pjohnson@hpenews.com — 336-888-3528 — @HPEpaul