Jul. 3--Unemployment increased in Cabarrus and Rowan counties in May, according to official state statistics released last week, and the rate is expected to increase again when Philip Morris USA stops production at its Concord plant this month, laying off 1,000 workers.

The plant on U.S. 29 will stop producing cigarettes July 29. Most of the workers who will lose their jobs are hourly union workers. About 100 employees will continue to work until the plant is completely decommissioned, according to Philip Morris USA.

To help mitigate the affect on its employees, Philip Morris has continued to offer employees training for new careers through its course reimbursement program.

"One figure that highlights this is that since June 2007, Cabarrus employees have taken advantage of nearly 1,300 company-reimbursed courses," said Paige Magness, spokeswoman for Philip Morris USA.

The cigarette manufacturer has offered its employees six to 20 months of severance pay.

Recent state figures show that Cabarrus County unemployment increased from 10.8 percent in April to 11.4 percent in May. Rowan County fared worse, rising from 12.5 percent unemployment to 13.6 percent for the same time period. Both counties are above the state average of 11.1 percent unemployment.

"All of the state's 100 counties continue to be challenged by this recession," N.C. Employment Security Commission Chairman Moses Carey Jr. said in a statement.

Unemployment rates increased in 82 counties and decreased in 16 counties, according to state statistics. The worst unemployment rate was reported in Scotland County with 17.2 percent jobless. Currituck County has the state's lowest unemployment rate at 6.3 percent.

The state ESC has paid nearly $3 billion in benefits from June 2008 to May 2009. Cabarrus County residents collected about $56 million in unemployment benefits from June 2008 to May 2009, while Rowan residents collected about $57 million. In May, $239.4 million in benefits were paid to 239,894 people statewide.

"We continue to work with customers in our 89 offices statewide -- and over the Internet and telephone -- to make sure those seeking work can find a position and those needing unemployment benefits receive those monies," Carey said.

While the outlook seems bleak, some companies are hiring locally. Great Wolf Lodge, a resort that opened in April off Bruton Smith Boulevard, recently held a job fair to fill 80 openings in its retail, front desk and housekeeping departments. Concord Mills recently opened new stores, including Off Broadway Shoes and Papaya, a women's clothing store, and is expecting to add more in the coming months.

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