The state’s jobless rate remained idling at 3.7% for the eighth consecutive month during March, the N.C. Commerce Department reported Thursday.
However, the department expects the Elon Musk-led DOGE cost-slashing initiative will take an increasing toll on federal government jobs in North Carolina, as well as on universities’ federal research grants.
The latest example is RTI International disclosing in a WARN Act notice it was eliminating 276 jobs permanently from its Research Triangle Park facility in Durham. Family Health International, doing business as FHI 360, is eliminating 144 jobs, also in Durham.
IBM filed a WARN notice of eliminating 72 jobs — starting on May 30 — at its 1100 Reynolds Blvd. operations on the University Corporate Center campus in Winston-Salem.
The uncertainty surrounding Trump administration tariffs also is looming over the U.S. and N.C. employment sectors.
People are also reading…
“The April and May numbers will be critical and potentially ugly, unless trade deals are made quickly,” said Michael Walden, a retired economics professor at N.C. State University,
Walden said that some of the jobs eliminated related to federal funding cuts won’t show up in the government category. “Research firms, like RTI, may be included in the information technology sector, which did lose jobs,” Walden said.
There was less employment churn among the 10 private-sector categories during March compared with most months since early 2023.
In the employer survey, there was a net gain of 6,500 private sector jobs from February, as well as 1,800 government jobs.
Leading the way in hiring was 2,500 in professional and business services, along with 1,700 in private education and health services, and 1,200 in manufacturing.
Over the past year, the state has had a net gain of 48,300 private-sector and 16,100 government jobs.
Topping the private sector is 21,200 jobs in private education and health services, 13,000 in professional and business services and 7,800 in trade, transportation and utilities.
Meanwhile, there was a loss of 8,000 jobs in manufacturing and a loss of 1,100 in information technology.
In the household survey, there was an overall 924 decrease in the labor force from February, representing 574 fewer employed North Carolinians and 350 fewer listed as newly unemployed and looking for work.
When people leave the work force, they are no longer considered as unemployed.
Taking a year-over-year look, the state’s labor force is up 0.2%, or by 9,862. That represents a net gain of 1,627 people listed as employed and an increase of 8,235 of those considered unemployed and looking for work.
Walden said it’s still unclear whether North Carolina will enter into recession during 2025, or just experience a very slow-growth economy.