Q2 2012 Raleigh-Durham, North Carolina Commercial Real Estate Economy

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Q2 2012 Raleigh-Durham, North Carolina Commercial Real Estate Economy

The second quarter of 2012 has brought a drop in unemployment and modest but continued job growth in the Raleigh-Durham area. Current Employment (CES) data from the U.S. Bureau of Labor Statistics (BLS) show that non-farm employment increased by 17,400 jobs (2.2%) in the 12 months ending June 2012. The Triangle Business Journal reported in September that the “Triangle’s diverse economy is paying off with three counties topping gainers,” for jobs in North Carolina. “With diversified economies that insulated them from the full force of the recession, Wake and the counties around it are continuing to create jobs at a faster clip than most other areas in the state,” according to this source. Total private employment was up 20,000 jobs (3.1%) in the 12 months ending in June, the BLS reports. The Triangle Business Journal reports that “Wake, Franklin and Johnston were the state’s top counties for adding private and public payroll jobs in the 12 months ending June 30, according to data compiled by the U.S. Bureau of Labor Statistics. The growth rate for each was 4.15%,” says BLS.

The BLS reports the Professional and Business Services sector added 4,300 jobs, (3.4%), while the substantially government-funded Education and Health Services sector added 3,700 jobs (3.0%). Manufacturing increased by 1,100 jobs (1.8%). Financial Activities increased by 800 jobs (2.0%). The Information sector posted an increase of 400 jobs (1.9%). Transportation and Utilities saw an increase of 400 jobs (2.8%), while Retail Trade posted another gain, adding 3,600 jobs (4.5%). The Leisure and Hospitality industry showed a solid gain of 4,600 jobs (6.0%). For “Other Services,” the BLS reports a slight increase of 400 jobs, or 1.2%. Other Services is a general term of various service industry jobs not covered in the other categories. Government employment is down as municipalities continue to tighten their belts. Overall Government employment is reported down by 2,600 jobs (1.9%).

“The Triangle jobless rate crept up in July, but the overall jobs picture remains markedly improved today since the beginning of the year,” the News Observer reported in August. The region gained about 2,500 jobs in July and has about 12,100 more than it did in January. “The Triangle is on track to add about 20,000 jobs this year, potentially attracting more job seekers to the area and increasing competition for available jobs,” said Wells Fargo economist Mark Vitner. “By comparison, the Charlotte area lost 3,000 jobs in July and has gained just 3,700 since the beginning of this year. The Triangle remains the state’s economically healthiest major metropolitan region, ahead of the Triad and the Charlotte area. The Triangle is doing better than the state, which had a jobless rate of 9.6% last month. The Triangle is also performing better than the national average, which posted a jobless rate of 8.3% for July,” the News Observer reported. According to the BLS, the Raleigh-Durham labor force increased by 20,699 in the 12 months ending in June.