This information may be accessed on the DES World Wide Web page, at http://www.ncesc.com

N e w s R e l e a s eNorth Carolina Department of Commerce - Labor and Economic Analysis Division

For More Information, Contact: For Immediate ReleaseLarry Parker/919.707.1010 July 18, 2014

North Carolina’s June Employment Figures Released

RALEIGH — The state’s seasonally adjusted June unemployment rate was 6.4 percent, unchanged from May’s revised rate of 6.4 percent. The national rate decreased 0.2 of a percentage point to 6.1 percent.

North Carolina’s June 2014 unemployment rate was 1.9 percentage points lower than a year ago. The number of people employed decreased 8,577 over the month to 4,389,167, and increased 77,054 over the year. The number of people unemployed decreased 2,142 over the month to 299,313, and declined 89,007 over the year.

Seasonally adjusted Total Nonfarm industry employment, as gathered through the monthly establishment survey, decreased 5,800 to 4,119,500 in June. The major industry with the largest over-the-month increase was Profes-sional & Business Services at 3,700, followed by Financial Activities, 3,400; Trade, Transportation & Utilities, 1,000; Construction, 600; Education & Health Services, 600; Manufacturing, 300; and Mining & Logging, 100. Major industries experiencing decreases were Government, 13,300; Other Services, 1,500; Information, 500; and Leisure & Hospitality Services, 200.

Since June 2013, Total Nonfarm jobs gained 74,800 with the Total Private sector growing by 82,300 and Gov-ernment declining by 7,500. The largest over-the-year increase of major industries was Professional & Business Services at 31,900, followed by Trade, Transportation & Utilities, 19,800; Leisure & Hospitality Services, 8,200; Education & Health Services, 7,500; Construction, 4,800; Financial Activities, 4,600; Information, 2,500; Other Services, 2,300; Manufacturing, 600; and Mining & Logging, 100. The only major industry experiencing a decrease over the year was Government, 7,500.

The next unemployment update is scheduled for Wednesday, July 30, 2014 when the county unemployment rates for June 2014 will be released.

— More —

N.C. 7.7

U.S.

Sept.2013

7.2

7.5

Oct.2013

7.2

7.2

Nov.2013

7.0

6.9

Dec.2013

6.7

6.7

Jan.2014

6.6

6.4

Feb.2014

6.7

6.2

Apr.2014

6.3

6.4

May2014

6.3

6.4

June2014

6.1

8.3

June2013

7.5

8.1

July2013

7.3

8.0

Aug.2013

7.2

Seasonally Adjusted Unemployment Rates Since June 2013

*2013 Numbers Have Been Annually Revised*

6.3

Mar.2014

6.7

June 2014 May 2014 June 2013NumericChange

PercentChange

NumericChange

PercentChange

(Local Area Unemployment Statistics)

Smoothed Seasonally Adjusted

Labor Force 4,688,480 4,699,199 4,700,433 -10,719 -0.2 -11,953 -0.3

Employed 4,389,167 4,397,744 4,312,113 -8,577 -0.2 77,054 1.8

Unemployed 299,313 301,455 388,320 -2,142 -0.7 -89,007 -22.9

Unemployment Rate 6.4 6.4 8.3 0.0 xxx -1.9 xxx

Not Seasonally Adjusted

Labor Force 4,691,295 4,728,271 4,739,463 -36,976 -0.8 -48,168 -1.0

Employed 4,388,173 4,414,924 4,331,113 -26,751 -0.6 57,060 1.3

Unemployed 303,122 313,347 408,350 -10,225 -3.3 -105,228 -25.8

Unemployment Rate 6.5 6.6 8.6 -0.1 xxx -2.1 xxx

(Current Population Survey)

Seasonally Adjusted

Labor Force 155,694,000 155,613,000 155,822,000 81,000 0.1 xxx xxx

Employed 146,221,000 145,814,000 144,075,000 407,000 0.3 xxx xxx

Unemployed 9,474,000 9,799,000 11,747,000 -325,000 -3.3 xxx xxx

Unemployment Rate 6.1 6.3 7.5 -0.2 xxx xxx xxx

Not Seasonally Adjusted

Labor Force 156,997,000 155,841,000 157,089,000 1,156,000 0.7 xxx xxx

Employed 147,104,000 146,398,000 144,841,000 706,000 0.5 xxx xxx

Unemployed 9,893,000 9,443,000 12,248,000 450,000 4.8 xxx xxx

Unemployment Rate 6.3 6.1 7.8 0.2 xxx xxx xxx

*Effective January 2014, updated US population estimates are used in the national labor force estimates, The annual population adjustments affect the comparability of national labor force estimates over time.

2014 estimates for the current month are preliminary. Estimates for the previous month have undergone monthly revision.2013 estimates have undergone annual revision.

United States

Month Ago Year Ago

North Carolina

North Carolina data is embargoed until 10:00 A.M., Friday July 18, 2014

June 2014 May 2014 June 2013NumericChange

PercentChange

NumericChange

PercentChange

(Current Employment Statistics)

Seasonally Adjusted

Total Nonfarm 4,119,500 4,125,300 4,044,700 -5,800 -0.1 74,800 1.8

Total Private 3,419,400 3,411,900 3,337,100 7,500 0.2 82,300 2.5

Mining & Logging 5,600 5,500 5,500 100 1.8 100 1.8

Construction 178,000 177,400 173,200 600 0.3 4,800 2.8

Manufacturing 443,500 443,200 442,900 300 0.1 600 0.1

Trade, Transportation & Utilities 773,900 772,900 754,100 1,000 0.1 19,800 2.6

Information 71,800 72,300 69,300 -500 -0.7 2,500 3.6

Financial Activities 211,400 208,000 206,800 3,400 1.6 4,600 2.2

Professional & Business Services 579,900 576,200 548,000 3,700 0.6 31,900 5.8

Education & Health Services 565,300 564,700 557,800 600 0.1 7,500 1.3

Leisure & Hospitality Services 438,900 439,100 430,700 -200 <0.1 8,200 1.9

Other Services 151,100 152,600 148,800 -1,500 -1.0 2,300 1.5

Government 700,100 713,400 707,600 -13,300 -1.9 -7,500 -1.1

(Current Employment Statistics)

Not Seasonally Adjusted

Total Nonfarm 4,133,000 4,155,800 4,057,100 -22,800 -0.5 75,900 1.9

Total Private 3,450,500 3,423,900 3,365,700 26,600 0.8 84,800 2.5

Mining & Logging 5,600 5,500 5,500 100 1.8 100 1.8

Construction 180,000 177,300 175,900 2,700 1.5 4,100 2.3

Manufacturing 445,300 442,800 444,600 2,500 0.6 700 0.2

Trade, Transportation & Utilities 775,800 771,300 756,400 4,500 0.6 19,400 2.6

Information 72,100 71,500 69,500 600 0.8 2,600 3.7

Financial Activities 214,800 209,400 208,700 5,400 2.6 6,100 2.9

Professional & Business Services 583,700 578,400 549,200 5,300 0.9 34,500 6.3

Education & Health Services 560,200 565,000 554,800 -4,800 -0.8 5,400 1.0

Leisure & Hospitality Services 459,100 449,600 450,000 9,500 2.1 9,100 2.0

Other Services 153,900 153,100 151,100 800 0.5 2,800 1.9

Government 682,500 731,900 691,400 -49,400 -6.7 -8,900 -1.3

Mfg. Production Workers (PW) Not Seasonally AdjustedMfg. PW Average Hourly Earnings $16.65 $16.81 $16.63

Mfg. PW Hours Worked 43.8 43.1 41.7

All 2014 Labor Force and CES data for the current month are preliminary.All 2013 Labor Force and CES estimates have been benchmarked.Estimates may not add to totals due to rounding.

North Carolina

North Carolina

Month Ago Year Ago

North Carolina data is embargoed until 10:00 A.M., Friday, July 18, 2014

L a b o r & E c o n o m i c A n a l y s i s D i v i s i o n | N o r t h C a r o l i n a D e p a r t m e n t o f C o m m e r c e | 1 o f 2

The North Carolina smoothed seasonally adjusted unemployment rate was 6.4 percent in June, remaining unchanged from the previous month, and falling 1.9 percentage points from June 2013. Over the month, the number of persons unemployed fell by 2,142 (0.7%). The civilian labor force decreased by 10,719 (0.2%) to 4,688,480.

Nationally, June’s unemployment rate was 6.1 percent. The number of persons unemployed was 9,474,000, while the civilian labor force was 155,694,000.

Seasonally adjusted Total Nonfarm industry employment (4,119,500) has decreased 5,800 (0.1%) since May 2014, and increased 74,800 (1.8%) since June 2013.1 Private sector employment grew over the month by 7,500 (0.2%) and 82,300 (2.5%) over the year.

Of the major industries for which payroll data are seasonally adjusted, Professional & Business Services had the largest over-the-month gain in jobs (3,700; 0.6%), followed by Financial Activities (3,400; 1.6%), Trade, Transportation & Utilities (1,000; 0.1%), Construction (600; 0.3%), Education & Health Services (600; 0.1%), Manufacturing (300; 0.1%) and Mining & Logging (100; 1.8%). Government (13,300; 1.9%) had the largest over-the-month decrease, followed by Other Services (1,500; 1.0%), Information (500; 0.7%), and Leisure & Hospitality Services (200; >-0.1%).

Since June 2013, Professional & Business Services added the largest number of jobs (31,900; 5.8%), followed by Trade, Transportation & Utilities (19,800; 2.6%), Leisure & Hospitality Services (8,200; 1.9%), Education & Health Services (7,500; 1.3%), Construction (4,800; 2.8%), Financial Activities (4,600; 2.2%), Information (2,500; 3.6%), Other Services (2,300; 1.5%), Manufacturing (600; 0.1%) and Mining & Logging (100; 1.8%). Government was the only industry to report a loss over the year at 7,500 (1.1%).

1It is important to note that industry employment estimates are subject to large seasonal patterns. Seasonal adjustment factors are applied to the data. However, these factors may not be fully capturing the seasonal trend. Therefore, when interpreting the changes in industry employment, it is advisable to focus on over-the-year changes in both the seasonally adjusted and not seasonally adjusted series.

Changes in Employment by NAICS IndustriesJune 2013 Compared to June 2014(Seasonally Adjusted)

United States/North Carolina Unemployment RatesJune 2013-June 2014(Smoothed Seasonally Adjusted**)

North Carolina Total Nonfarm EmploymentJune 2013-June 2014(Seasonally Adjusted)

7.57.3 7.2 7.2 7.2

7.06.7 6.6 6.7 6.7

6.3 6.36.1

8.38.1 8.0

7.77.5

7.26.9

6.76.4 6.3 6.2

6.4 6.4

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

June

2013

July

2013

Aug.

2013

Sept.

2013

Oct.

2013

Nov.

2013

Dec.

2013

Jan.

2014

Feb.

2014

March

2014

April

2014

May

2014

June

2014

Percent

United  States North  Carolina

4,000

4,020

4,040

4,060

4,080

4,100

4,120

4,140

June

2013

July

2013

Aug.

2013

Sept.

2013

Oct.

2013

Nov.

2013

Dec.

2013

Jan.

2014

Feb.

2014

March

2014

April

2014

May

2014

June

2014

In  Thousands

+4.8

+0.6

+19.8

+2.5

+4.6

+31.9 +7.5

+8.2

+2.3

-­‐7.5

0

100

200

300

400

500

600

700

800

900

Construc on Manufacturing Trade,Transporta on

&  U li es

Informa on FinancialAc vi es

 Professional&  BusinessServices

Educa on  &HealthServices

Leisure  &HospitalityServices

Other  Services Government

In  Thousands

June  2013 June  2014

Labor  Market  ConditionsNorth Carolina J u n e  

2 0 1 4

* N C c u r r e n t m o n t h d a t a a r e p r e l i m i n a r y , w h i l e o t h e r 2 0 1 4 d a t a a r e r e v i s e d a n d 2 0 1 3 d a t a h a v e u n d e r g o n e a n n u a l r e v i s i o n . U S 2 0 1 4 d a t a r e f l e c t n e w p o p u l a t i o n e s t i m a t e s , w h i l e p r e v i o u s y e a r s ’ d a t a h a v e u n d e r g o n e a n n u a l r e v i s i o n .

* * U S d a t a a r e n o t s m o o t h e d .

L a b o r & E c o n o m i c A n a l y s i s D i v i s i o n | N o r t h C a r o l i n a D e p a r t m e n t o f C o m m e r c e | 2 o f 2

The June 2014 not seasonally adjusted Total Nonfarm employment level of 4,133,000 was 22,800 (0.5%) lower than the May 2014 revised employment level of 4,155,800. Among the major industries in North Carolina, Leisure & Hospitality Services had the largest over-the-month increase in employment at 9,500 (2.1%), followed by Financial Activities (5,400; 2.6%), Professional & Business Services (5,300; 0.9%), Trade, Transportation & Utilities (4,500; 0.6%), Construction (2,700; 1.5%), Manufacturing (2,500; 0.6%), Other Services (800; 0.5%), Information (600; 0.8%) and Mining & Logging (100; 1.8%). Government (49,400; 6.7%) had the largest over-the-month decrease, followed by Education & Health Services (4,800; 0.8%).

Over the year, the Service Providing sector (all industries except Mining & Logging, Construction, and Manufacturing) showed an increase of 71,000 (2.1%) jobs. Professional & Business Services experienced the largest employment increase with 34,500 (6.3%), followed by Trade, Transportation & Utilities (19,400; 2.6%), Leisure & Hospitality Services (9,100; 2.0%), Financial Activities (6,100; 2.9%), Education & Health Services (5,400; 1.0%), Other Services (2,800; 1.9%) and Information (2,600; 3.7%). Government (8,900; 1.3%) had the only over-the-year decrease.

The Goods Producing sector increased by 4,900 (0.8%) jobs over the year. Construction experienced the largest employment increase with 4,100 (2.3%), followed by Manufacturing (700; 0.2%) and Mining & Logging (100; 1.8%).

Food had the largest amount of manufacturing employment with 51,600 in June 2014. Both Chemical and Wood Product had the largest net over-the-year increase at 1,300. Other manufacturing industries with over-the-year gains were: Transportation Equipment, 1,100; Furniture & Related Product, 900; Fabricated Metal Product, 800; Machinery, 500; Plastics & Rubber Products, 100; and Printing, 100.

Average Weekly Hours for manufacturing production workers in June increased 42 minutes from May’s revised rate of 43.1. Average Hourly Earnings fell by $0.16 to $16.65, as Average Weekly Earnings grew by $4.76 to $729.27.

Regular Initial Claims for Unemployment Insurance (UI) totaled 24,209 in June, increasing 903 from May. Less than 1 percent of Initial Claims for June 2014 were “attached” to a payroll, meaning that employees expect to be recalled to their jobs.

A total of $36,846,105 in regular UI benefits was paid in June to 40,347 claimants statewide — a decrease of 2,035 claimants since May 2014.

For the 12-month period ending June 2014, $717,849,262 waspaid from all programs, both state and federal. The UI Trust Fund balance at the end of June was in the red ($976,599,197). The State Reserve Fund balance was $52,279,881.

-­‐1.1

-­‐0.8

-­‐0.7

-­‐0.6 -­‐0.6

-­‐0.3

-­‐1.5

-­‐1.0

-­‐0.5

0.0

Computer  &

Electronic

Product

Food

Manufacturing

Apparel Beverage  &

Tobacco

Product

Tex le  Product

Mills

Tex le  Mills

In  T

housands

23.9

9.4 9.1 8.57.8

4.8

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Admin  &

Waste  Mgmt

Accom.  &

Food  Services

Professional,

Scien c  &

Tech.

Retail  Trade Wholesale

Trade

Educa onal

Services

In  Thousands

$1,613,294,359

$673,641,005

$151,236

$0

$300,000,000

$600,000,000

$900,000,000

$1,200,000,000

$1,500,000,000

$1,800,000,000

UI  Taxes  Collected UI  Bene ts  Paid Interest  Received

Selected Manufacturing Industries With Job LossesJune 2013-June 2014(Not Seasonally Adjusted)

Selected Service Industries With Job GainsJune 2013-June 2014(Not Seasonally Adjusted)

UI Taxes Collected and NC Regular UI Benefits PaidJune 2013-June 2014

North Carolina Labor  Market  Conditions

— Technical Notes —

Technical Notes

This release presents labor force and unemployment estimates from the Local Area Unemployment Statistics (LAUS) program. Also presented are nonfarm payroll employment estimates the Current Employment Statistics (CES) program. The LAUS and CES programs are both federal-state cooperative endeavors.

Labor force and unemployment--from the LAUS program

Definitions. The labor force and unemployment estimates are based on the same concepts and definitions as those used for the official national estimates obtained from the Current Population Survey (CPS), a sample survey of households that is conducted for the Bureau of Labor Statistics (BLS) by the U.S. Census Bureau. The LAUS program measures employment and unemployment on a place-of-residence basis. The universe for each is the civilian noninstitutional population 16 years of age and over. Employed persons are those who did any work at all for pay or profit in the reference week (the week including the 12th of the month) or worked 15 hours or more without pay in a family business or farm, plus those not working who had a job from which they were temporarily absent, whether or not paid, for such reasons as bad weather, labor-management dispute, illness, or vacation. Unemployed persons are those who were not employed during the reference week (based on the definition above), had actively looked for a job sometime in the 4-week period ending with the reference week, and were currently available for work; persons on lay-off expecting recall need not be looking for work to be counted as unemployed. The labor force is the sum of employed and unemployed persons. The unemployment rate is the number of unemployed as a percent of the labor force.

Method of estimation. Statewide estimates are produced using an estimation algorithm administered by the BLS. This method, which underwent substantial enhancement at the beginning of 2005, utilizes data from several sources, includ-ing the CPS, the CES, and state unemployment insurance (UI) programs. Each month, census division estimates are controlled to national totals, and state estimates are then controlled to their respective division totals. Substate estimates are controlled to their respective state totals. For more information about LAUS estimation procedures, see the BLS website at www.bls.gov/lau/laumthd.htm

Revisions. Labor force and unemployment data for the previous month reflect adjustments made in each subsequent month, while data for prior years reflect adjustments made at the end of each year. The monthly revisions incorporate updated model inputs, while the annually revised estimates reflect updated population data from the U.S. Census Bu-reau, any revisions in the other data sources, and model reestimation. In most years, historical data for the most recent five years (both seasonally adjusted and not seasonally adjusted) are revised near the beginning of each calendar year, prior to the release of January estimates.

Seasonal adjustment. The LAUS program introduced smoothed seasonally adjusted (SSA) estimates in January 2010. These are seasonally-adjusted data that have incorporated a long-run trend smoothing procedure, resulting in estimates that are less volatile than those previously produced. The estimates are smoothed using a filtering procedure, based on moving averages, to remove the irregular fluctuations from the seasonally-adjusted series, leaving the trend. The same process is used on both historical and current year estimates. For more information about the smoothing technique, see the BLS website at www.bls.gov/lau/lassaqa.htm.

Area definitions. The substate area data published in this release reflect the standards and definitions established by the U.S. Office of Management and Budget on December 1, 2009. A detailed list of the geographic definitions is available online at www.bls.gov/lau/lausmsa.htm.

Employment--from the CES program

Definitions. Employment data refer to persons on establishment payrolls who receive pay for any part of the pay period that includes the 12th of the month. Persons are counted at their place of work rather than at their place of residence;

those appearing on more than one payroll are counted on each payroll. Industries are classified on the basis of their principal activity in accordance with the 2012 version of the North American Industry Classification System.

Method of estimation. CES State and Area employment data are produced using several estimation procedures. Where possible these data are produced using a “weighted link relative” estimation technique in which a ratio of current-month weighted employment to that of the previous-month weighted employment is computed from a sample of establishments reporting for both months. The estimates of employment for the current month are then obtained by multiplying these ratios by the previous month’s employment estimates. The weighted link relative technique is utilized for data series where the sample size meets certain statistical criteria.

For some employment series, relatively small sample sizes limit the reliability of the weighted link-relative estimates. In these cases, BLS uses the CES small domain model (SDM) to generate employment estimates. The SDM combines the direct sample estimates (described above) and forecasts of historical (benchmarked) data to decrease the volatility of the estimates. For more detailed information about the CES small domain model, refer to the BLS Handbook of Methods.

Annual revisions. Employment estimates are adjusted annually to a complete count of jobs, called benchmarks, derived principally from tax reports that are submitted by employers who are covered under state unemployment insurance (UI) laws. The benchmark information is used to adjust the monthly estimates between the new benchmark and the preceding one and also to establish the level of employment for the new benchmark month. Thus, the benchmarking process establishes the level of employment, and the sample is used to measure the month-to-month changes in the level for the subsequent months.

Seasonal adjustment. Payroll employment data are seasonally adjusted at the statewide supersector level. In some states, the seasonally adjusted payroll employment total is computed by aggregating the independently adjusted supersector series. In other states, the seasonally adjusted payroll employment total is independently adjusted. Revisions of histori-cal data for the most recent 5 years are made once a year, coincident with annual benchmark adjustments.

Reliability of the estimates

The estimates presented in this release are based on sample surveys, administrative data, and modeling and, thus, are subject to sampling and other types of errors. Sampling error is a measure of sampling variability--that is, variation that occurs by chance because a sample rather than the entire population is surveyed. Survey data also are subject to nons-ampling errors, such as those which can be introduced into the data collection and processing operations. Estimates not directly derived from sample surveys are subject to additional errors resulting from the specific estimation processes used. Model-based error measures for seasonally adjusted and not seasonally adjusted data and for over-the-month and over-the-year changes to LAUS estimates are available online at www.bls.gov/lau/lastderr.htm. Measures of sampling error for state CES data at the total nonfarm and supersector levels are available online at www.bls.gov/sae/790stderr.htm.

Release Dates

The next unemployment update is scheduled for Wednesday, July 30, 2014 when the county unemployment rates for June 2014 will be released.

The complete 2014 data release schedule can be accessed at:

http://www.nccommerce.com/Portals/47/Documents/2014_NC_Release_Dates.pdf