The good news is that the state’s rising unemployment rate triggered a safety net that may catch about 40,000 jobless North Carolinians who’ve used up all their unemployment benefits in the past year. But the bad news is that this program is just a short-term solution to a growing problem. The new governor will have to work with state and local leaders to improve the economy and create more jobs.

The N.C. Employment Security Commission says that the program to provide extended benefits, paid for through a shared arrangement by state and federal governments, remains in effect as long as certain criteria are met. Those criteria include a high unemployment rate. Unfortunately, that shouldn’t be a problem. Economists are projecting the state’s jobless rate to hit at least 7.5 percent in 2009, Richard Craver reported recently in the Journal.

“There are more employers with hiring freezes than those hiring,” said Piers Clarkson of the Clarks Group of Winston-Salem. “There may be some thawing of the hiring freeze once the presidential election is over and we know who will be in the White House. But I don’t expect any significant interest in local hiring until 2009, perhaps well into 2009.”

Some of the unemployed have savings to get them through — what’s left after the economic crisis, anyway. Others don’t have any savings. Their dreams have died, and they’re turning to social-service agencies for help.

Some can turn to the state as well.

About 14 percent of the nearly 315,000 state residents counted as unemployed in August are eligible for up to 13 weeks of extended benefits, if they meet additional eligibility requirements. But even if they do so, they can receive the extended benefits only once. The program and others to help the unemployed are certainly needed, but what’s needed even more is a lot more jobs.

“We know there are a lot of people hurting out there,” said Larry Parker, a spokesman for the Employment Security Commission.

“North Carolina seems to have gotten hit later by the economy than other states in the Southeast, but we’re definitely feeling it now. ”

He got that right. News of company layoffs and closings are a broken record in North Carolina. A few years ago at least, a laid-off factory worker with the proper retraining stood a good chance of getting a decent job in another field. But now, with businesses across the board in trouble, there’s no guarantee that any laid-off worker will find another job, at least not in any timely manner.

That’s bad for them, and bad for North Carolina. And it’s all the more reason to vote in this year’s elections. Go for candidates who offer the best plans for improving the economy. And whichever candidates win, demand that they help create jobs.

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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.

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.

The nation’s unemployment rate reached a five-year high of 6.1 percent in September. Nearly 10 million Americans were officially unemployed last month and still actively looking for work. Unemployment claims are now at a seven-year high, with nearly 500,000 workers applying for benefits every week.

There has also been a major increase in long-term joblessness. The number of workers who found themselves unemployed for more than six months while still actively looking for work increased by nearly 300,000 from May to September, reaching 2 million workers last month. Congress should make every effort to expedite unemployment insurance legislation that expands the UI program to address the severe hardship faced by record numbers of unemployed workers.

The federal government enacted the Emergency Unemployment Compensation program on June 28th, which provides an additional 13 weeks of federally funded extended jobless benefits to workers beyond the 26 weeks of unemployment insurance provided by the states. Since the federal program of extended jobless benefits was enacted, nearly 900,000 more workers have become unemployed in a rapidly declining economy, and 800,000 workers have reached the end of those 13 weeks of federal jobless benefits. These national figures are stark, but they understate the even more serious situation facing many individual states, which are suffering from particularly high levels of unemployment.

Given the recent surge in unemployment, Congress should act swiftly to pass UI legislation that will fund additional benefits for all states. The legislation will provide extra relief for especially hard-hit states. The House of Representatives voted overwhelmingly in favor of such a measure in October, and the Senate should follow suit in its November session.

Read more about how the economic downturn has affected employment rates in the states:

Alaska | Colorado | Florida | Georgia | Kentucky | Maine | Mississippi | Missouri | North Carolina | Nevada | Ohio

For more information, contact Judy Conti at the National Employment Law Project (202-533-2573), Lisa Donner at Half in Ten (202-682-1611), or Alexandra Cawthorne at the Center for American Progress Action Fund (202-682-1611).

Read the press release from the National Employment law Project, the Center for American Progress Action Fund, and Half in Ten, with a chart of the September unemployment figures.

“Indiana: Facing Foreclosure,” May 5, 2008.

“St. Paul, Minn. Passes ACORN-Backed Foreclosure Moratorium,” May 22, 2008.

“Landmark ACORN Foreclosure Bill Becomes Law in California,” July 8, 2008.

“North Carolina Passes Three Bills to Curtail Predatory Lending,” August 21, 2008.