‘A lot of discouragement’: Local job market is tight
By Sarah A. Reid
The Fayetteville Observer
Before January, Robert Wallace always had great luck with temporary agencies.
They provided the 43-year-old with steady work in good-paying factories and warehouses.
But in January, a temp-to-hire job did not materialize, and his work in a factory that makes body washes ended.
Wallace was suddenly without a job and without any prospects.
Instead of turning back to the temporary agency, Wallace started hunting for a permanent job on his own. He peppered retail businesses, factories and warehouses from Fayetteville to Scotland County with applications, he said.
“I just needed a job, and I didn’t know what else to do,” he said. “I needed to do something.”
He dropped by a few employers’ offices and was told he couldn’t make office calls, he said. Others scolded him for calling them. A few prospective employers promised they would call him back, but no one ever did.
“It’s been depressing at times,” he said “A lot of discouragement.”
Job seekers and those who keep a close eye on unemployment figures say the local job market is tight, especially for unskilled workers.
Some employers have been inundated with applications for a few openings. Others in more specialized fields say they have seen little to no increase.
“It’s tight everywhere,” said Glenn McQueen, the manager of the Cumberland County office of the Employment Security Commission.
There have been no mass layoffs in Cumberland County, according to the Employment Security Commission. Instead, employers are laying off a few people at a time and small offices are closing, McQueen said.
On Monday morning, the parking lot of the ESC office on Ray Avenue was nearly full. All 15 computers were in use by job hunters. People stood in a line stretching to the door, waiting to file a claim.
“We have people now who are taking fast-food jobs where years ago you would never see the elderly take fast-food jobs,” McQueen said.
Jobless claims spike
The number of new unemployment claims filed in Cumberland County jumped 3,288 for the first nine months of this year compared with the first nine months of last year.
“That is a significant increase,” said Larry Parker, a spokesman for the state Employment Security Commission.
The state’s September unemployment rate is the highest it has been since January 2002, according to the Commission. The unemployment rate rose slightly from 6.9 percent in August to 7 percent in September. A year ago, the rate was 4.7 percent.
Even the Security Commission has not been immune to cutbacks. Five branch offices were closed this year, and the commission isn’t filling some positions when people leave or retire, Parker said.
Only nine states had higher unemployment rates in September than North Carolina, according to the U.S. Department of Labor.
In August, 27 of North Carolina’s 100 counties had unemployment rates of 8percent or higher, said John Quinterno, a research associate with the N.C. Budget and Tax Center, a nonprofit, anti-poverty group.
Cumberland County’s unemployment figures for September are scheduled to be released Friday.
“That level of unemployment is a serious level,” Quinterno said. “It points to a general weakness in the labor market.”
The September numbers do not capture the full brunt of the subprime mortgage debacle and financial services meltdown, Quinterno said. He expects unemployment will rise in the next few months.
“This is not exactly the best time to be looking for a job,” he said.
By the end of October, roughly 30,000 North Carolinians will have used up all of their unemployment benefits, Quinterno said. Another estimated 13,000 may do so by the end of the year.
In June, Congress voted to extend unemployment benefits by 13 weeks. Most workers can collect up to 26 weeks of partial paychecks through the unemployment system.
The House passed another extension earlier this month that would tack on an additional seven weeks for workers nationwide. Workers in high-unemployment states like North Carolina would be eligible for a 13-week extension if the Senate passes the plan. The N.C. Budget and Tax Center, which is urging approval, believes a vote may be taken in mid-November.
Bragg helps city’s outlook
Local economist Inder Nijhawan said Fayetteville is in a better economic position than the rest of the state because of its proximity to Fort Bragg.
“An acceleration in government spending could give us a cushion,” Nijhawan said.
In September, a Virginia-based construction company won a $288.5 million contract to build a combined headquarters for Forces Command and Army Reserve Command. Nijhawan, a professor at Fayetteville State University, expects more construction dollars will flow into Fort Bragg and spill into the local economy as the military prepares to absorb soldiers as part of the Base Realignment and Closure process.
A low manufacturing base has also helped Cumberland County keep unemployment figures in the single digits, Nijhawan said. He sees a slowdown in that sector and in food service.
“I’m more worried about the retail sector,” he said.
Work in high demand
The prospect of getting a job has been enough to attract huge crowds to job fairs and a few businesses seeking workers.
When Lowe’s Home Improvement Center decided to open a new store in Fayetteville, the company collected more than 1,000 applications during a three-day job fair in July inside a vacant building on Raeford Road.
“Which is a phenomenal outpouring,” said Lowe’s spokeswoman Maureen Rich.
Only 100 jobs were available at the new store off Raeford Road, she said.
Lowe’s offers benefits for part-time workers, Rich said. She would not disclose how much those jobs paid.
Steve Snyderman, a spokesman for Goodwill Industries, wants people to know that Goodwill jobs pay at least $10 an hour with full benefits. A recent job opening in Fayetteville yielded about five more applicants than the usual 25, he said.
“We have not had a crushing increase in applicants,” Snyderman said.
Neither has Brad Loase, co-owner of Express Employment Professionals in Fayetteville. Loase’s company places clerical, office, and light and heavy industrial workers, mostly in permanent positions.
More highly skilled workers are coming through Loase’s doors, he said. He also has noticed an uptick in employees seeking second jobs.
Last week, companies sought 32 workers from Loase’s company, he said. He filled those positions and a few more.
“When we are finding good people, employers are taking them,” Loase said.
Although he admitted that the job market may be stagnant in other parts of the country, Loase thinks Fayetteville is insulated because of Fort Bragg.
“I just don’t see it here,” he said.
Linda Wheeler, an instructor from Fayetteville Technical Community College, has watched the number of unemployed grow from the local ESC office. Six to eight people usually attend her weekly employability classes. Lately, she said she has been teaching as many as 14.
Wallace, the unemployed factory worker, was in her class this week. He has found steady part-time work and has decided to go to school to become a social worker, he said.
The depressed, tiresome feeling he had during his job hunt has been replaced by hope.
“I feel a lot better,” he said with a big grin on his face.
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See the latest unemployment figures for North Carolina.
Read the press release from the National Employment Law Project, the Center for American Progress Action Fund, and Half in Ten on the September unemployment figures.
Tags: North Carolina
