Job market shows little change
The number of people in the labor force dropped in August for the first time since February, according to the latest statistics from the N.C. Employment Security Commission.
Employment remained about the same and unemployment edged down slightly to 5.6 percent from 5.7 percent in July.
Economists said it was too early to tell whether the 3,547 decrease in the labor force, the number of workers either employed or unemployed and looking for work, was an anomaly or indicated a trend. While the figures are meant to account for changes in the labor force like students leaving jobs to return to school and teachers returning to the classroom, they often underestimate changes, they say. A prolonged drop would indicate a slowdown in the economy.
"The labor force is growing in the Carolinas, particularly in North Carolina," said John Silvia, chief economist at Wachovia Corp. "We're still getting immigration into this state from Latin America and from the North. I would treat this as a seasonal blip."
Economist Michael Walden, a professor at N.C. State, said figures in May and June as well as November and January -- times when big labor shifts occur because of school and Christmas -- should not be overanalyzed.
"We all need to be cautious. I’d wait to see if the trend continues," said Walden.