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may 2002


State Government News Briefs
Jobless rate jumps to 6.6%, highest in 18 years
North Carolina's unemployment rate jumped to 6.6 percent in March from a revised 6.3 percent in February, according to state Employment Security Commission figures. That compares with a national jobless rate of 5.7 percent. The last time the state's seasonally adjusted unemployment rate was at or above 6.6 percent was in October 1984, when the rate was 6.7 percent. Industries reporting the largest job losses were furniture and fixtures; apparel; wholesale goods; food stores; and finance, insurance and real estate.

There are bright spots in the ESC numbers. Total seasonally-adjusted nonagricultural employment increased by 5,700 jobs from February to March, and both the manufacturing (+2,400 jobs) and service industries (+5,700) showed an overall increase in employment over the month. This is the first month-to-month increase in manufacturing employment since September 2000.

Average hourly earnings in manufacturing jobs increased from $13.48 to $13.57. Average weekly hours for production workers also increased to 40.0 hours compared to 39.6 the previous month. However, several months of positive change are necessary before suggesting that an economic change has occurred.

The state paid approximately $102.5 million in unemployment benefits in March, bringing the total amount paid over the past 12 months to nearly $1.1 billion.


ESC survey finds plenty of jobs available
Despite the state’s high unemployment rate, there are nearly 6,782 jobs going begging at companies all across the state, according to a  survey by the N.C. Employment Security Commission. More than 40 percent of those job openings are in professional, technical and managerial positions, the survey said. The ESC also asked the 2,700 largest employers in North Carolina to give an idea of possible job openings in their business which would be created as demand for products and services increased over the next 60 to 90 days. The companies said they anticipated creating 4,731 new jobs in that period. Officials said that the total of more than 11,500 currently available or soon-to-be-created jobs indicates a strong economic recovery ahead.


Federal aid bolsters unemployment insurance trust fund
The state Employment Security Commission will not tap an emergency reserve fund to pay jobless claims until a $240 million infusion of federal money has been spent. The move means that, for now at least, employers will not be hit with a 20 percent unemployment insurance tax surcharge. But employers still face a doubling of unemployment insurance premiums next year if the trust fund is below $800 million on Aug. 1. With the federal funds, the state's unemployment trust fund stood at $527.3 million in mid-April.

Education groups urge state to throw in the towel in Leandro case
Fifteen education advocacy groups are urging state leaders to drop appeals in the long-running Leandro case and instead promptly comply with a Superior Court judge's order to ensure that at-risk children receive a quality education. State officials said they’re deciding whether to appeal Judge Howard Manning’s order that the state must take immediate steps to improve educational opportunities for students at risk of academic failure. It’s assumed that the only way the state can do that is through increased spending on k-12 schools.


State moves up in national education rankings
North Carolina has moved up to 21st in the nation in average teacher salary, at $41,151 a year, according to an annual report issued by the National Education Association. The report said teach pay in North Carolina is $2,184. Teachers in New Jersey earn the nation’s highest salaries, at $53,281. North Carolina teacher pay ranking has increased steadily because of the additional $1.4 billion expenditures mandated by the Excellent Schools Act. Other statistics about North Carolina in the NEA report:

North Carolina ranks 46th in the nation in the percentage of male classroom teachers, at 19.3 percent. Michigan topped the list with 37.4 percent of its workforce being male. The U.S. average 25.8 percent.

North Carolina ranks in 39th in average per pupil spending, at $6,169 per year. The national average is $7,161. If North Carolina funded its schools at the national average, it would cost an additional $1.1 billion. 

In terms of the sources of revenue for public schools, North Carolina continues to be a national leader in the percentage of funding that comes from the state.  Since 1991, the state has increased its share of education funding from 65.1 percent to 70.6 percent.
 
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