Aug. 28--CHAPEL HILL -- The unemployment rate in Orange County reached its highest point in 18 years in July, reflecting economic trends across the state, according to the Employment Security Commission of North Carolina.

Orange's 5.1 percent rate is the seventh lowest among the state's 100 counties, but still higher than the previous county high of 5.0 percent in June 2003. Online statistics maintained by the ESC only go back to 1990.

"It shows that our county's economy, while it's definitely strong, is still affected by national trends," said Adam Klein, vice president for economic development and government relations at the Chapel Hill-Carrboro Chamber of Commerce. "There's no way to deny that or separate that out."

Experts point to several factors that may be contributing to the rising unemployment numbers, but there is no agreement on any definite local causes beyond a reflection of nationwide economic hardships.

Klein said layoffs at GlaxoSmithKline and other Research Triangle Park firms may be showing up in the numbers as commuters living in Orange County are forced to search for new jobs.

Brad Broadwell, director of the Orange County Economic Development Commission, said the area's strongest sectors -- including government, university and health care -- seem to be relatively stable, but jobs in service industries and manufacturing are likely suffering.

Broadwell figures the half-percent increase in unemployment from June to July translates to roughly 100 people who are now out of a job. He's concerned that those people will have difficulty finding new jobs in Orange and, considering rising unemployment in neighboring counties, they may consider leaving the area.

Unemployment in Durham County increased from 5.1 percent to 5.5 percent in July. In Wake County it went from 4.8 to 5.2; in Chatham it rose from 5.5 to 5.8.

A 5.1 percent unemployment rate in Orange still may be considered healthy by some experts, Broadwell said, but he's concerned about the long-term impact on the tax base if those people can no longer afford to live in the county.

"This is a tough one," Broadwell said. "A lot of people that are working have not seen a sizable recession since the '70s. They don't know how to handle it."

Aaron Nelson, president of the Chapel Hill-Carrboro Chamber of Commerce, noted the county numbers to community leaders in a recent e-mail, inviting feedback on how "we might prepare for any negative impacts on our business community, local government tax receipts and the community as a whole."

"While not greatly concerned, I do think the unemployment number is worthy of note and worth some discussion," Nelson wrote.

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