NC Bankers Statement on Unemployment

The North Carolina Bankers Association says a majority of Americans believe the U.S. economy is still in a recession even though the economy has been in an expansion for three years.  The annualized rate of GDP growth in the first quarter of this year was a very disappointing 2.1 percent.  The employment picture is dismal with the unemployment rate still above 8 percent.  The level of debt for households and government are higher now than the level coming out of previous recessions in the post WWII period. The state unemployment rate dropped the last three months falling to 9.4% in April.  About 30,000 nonfarm jobs were added in the last 12 months. Unfortunately, only three states have a higher unemployment rate. Structural unemployment is a serious problem for North Carolina.   According to the North Carolina Bankers Association, our government must cut regulations across the board, flatten the tax code for individuals and businesses, increase infrastructure spending, and promote the development of natural gas and oil exploration or high unemployment will become the new normal.