Report: WNC economy is weak

Jason Sandford

Jason Sandford is a reporter, writer, blogger and photographer interested in all things Asheville.

1

Here’s the report, from Appalachian State University’s WNC Economic Index:

BOONE—Western North Carolina’s economic activity remains weak, falling 0.2 percent in March and erasing earlier gains during the first two months of the year.

According to the WNC Economic Index compiled at Appalachian State University, the region’s economy remained flat for the first quarter of the year.

“We had some positive movement during the first two months of the year, but that was wiped out by the losses in March,” said Todd Cherry, an author of the report. Cherry is a professor of economics at Appalachian.

“The regional economy continues to teeter on the edge of a recession, but the main story is the magnitude and persistence of the economic weaknesses,” he said. “Recessions are designed by negative growth. The actual growth rate reveals much more.”

Cherry says the region’s job losses are troubling. “Looking at the employment numbers from the first quarter, Western North Carolina is not holding up as well as the rest of the state,” he said. “The region lost nearly 3,000 jobs, or 0.5 percent of the workforce, during the first quarter of 2008. The state lost about 13,500 jobs, but that represents 0.3 percent of the statewide workforce.”

Seasonally adjusted employment for WNC fell 0.25 percent in March, and declined 0.50 percent in the first quarter of 2008.

Thirteen of the 25 WNC counties experienced a net job loss in March. Graham, Haywood and Wilkes counties had the largest job losses (0.84, 0.51 and 0.51 percent). Ashe, Alexander and Catawba counties had the largest job gains (0.67, 0.55 and 0.41 percent.)