(Source: The News & Observer)

By Alan M. Wolf, The News & Observer, Raleigh, N.C.
Sep. 27--The Triangle area's unemployment rate continued its steady climb in August, as the national slump and soaring energy prices hurt hiring prospects for job seekers.
The jobless rate for the region that includes Durham, Johnston, Orange and Wake counties was 5.4 percent in August, according to data released Friday by the N.C. Employment Security Commission and adjusted for seasonal effects by Wachovia in Charlotte.
That was the highest since November 2003 and up from 3.7 percent a year ago.
"There's no doubt businesses are less willing to expand their operations now and hire more workers," said Mark Vitner, a Wachovia economist.
Still, this region's job market remains stronger than that of the nation, which saw the unemployment rate jump to 6.1 percent in August. The state average climbed to 6.9 percent last month.
Mecklenburg County had a seasonally adjusted jobless rate of 7 percent in August. That was the highest since the 1980s, Vitner said. But that region relies heavily on more cyclical industries, including the financial and transportation sectors.
The Triangle is holding up relatively well because of its recession-resistant foundations of government, education and health care. Also, this region continues to attract people from other markets.
"Even during bad times, Raleigh is one of the better-looking horses in the glue factory," said Mike Helmar, an economist with Moody's Economy.com. "What you've really got is a flat, stagnant economy."
That's not to say this area is immune to the storms roiling Wall Street and the national economy. Any businesses tied to the housing market are seeing slowing sales and are unlikely to hire until things improve. The British parent of Raleigh-based Stock Building Supply announced this week that it's reviewing whether to sell that division or cut more jobs.
Other large employers, including GlaxoSmithKline and R.H. Donnelley, are eliminating jobs to offset slower sales.
Helmar doesn't expect the Triangle job market to begin to rebound until later in 2009. "Even when the economy begins to recover next year, the job market will take more time," he said. "Employers will look to wring more productivity out of existing workers."
A separate employment survey of businesses that is not used to calculate the jobless rate was also released Friday. It showed that the Raleigh-Cary market added about 3,000 jobs in August, with increases in retailing and health care. Drug research firms such as Quintiles and PPD are among those recruiting new workers.
Fidelity Investments, which added 1,500 jobs at its Research Triangle Park campus last year, continues to hire. The Boston-based firm typically has 20-30 openings in RTP at any time, said spokesman Mike Shamrell. Thirty-two open positions in RTP are listed on Fidelity's Web site.
"It is a very skilled talent pool down there," Shamrell said.
alan.wolf@newsobserver.com or (919) 829-4572
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