N.C. officials look for silver lining in economic gloom

By Connie Sage

Correspondent

Local business leaders are looking for a silver lining in an otherwise gloomy economy, even though a new report shows 20,400 fewer jobs in North Carolina compared with a year ago, and even as the number of unemployed continues to rise.

The jobless rate statewide edged up to 7 percent in October from 6.9 percent, according to the Employment Security Commission's latest numbers, released Friday. The national unemployment rate for the same month was 6.5 percent.

There were 5,400 fewer jobs in the state in October, compared with the previous month. Since October 2007, the number of nonfarm industry jobs has fallen by 20,400.

To offset the bad news, local business leaders are looking on the bright side. Enrollment at College of The Albemarle is up 12 percent over last year. Chamber of Commerce

executives are encouraging holiday shoppers to buy locally. Real estate agents are cautiously optimistic that the market could be improving.

"We've seen a little flurry of activity" in home sales, said Ann Perry of Perry & Co. Sotheby's International Realty in Edenton. "I don't know if it's snow before Thanksgiving, but we're mighty thankful for it."

Her company sold a historic Edenton home last week for $1.6 million. That may be the exception.

There have been 334 fewer sales - or a 32 percent decrease - in the number of houses, townhouses and condos sold to date this year compared with the same period in 2007, according to Stephanie Bateman, executive director of the Albemarle Area Association of Realtors. That group represents Camden, Chowan, Currituck, Gates, Perquimans and Pasquotank counties and includes homes sold through its Multiple Listing Service.

In Dare County and the northern beaches of Currituck County, 274 fewer homes have been sold to date, compared with all of last year, said Rosemarie Doshier, president of the Outer Banks Association of Realtors.

"There's people out there with money and there are good opportunities," Doshier said.

For example, a house sold for a million dollars in 2005 at The Village at Nags Head. That house went into foreclosure and is now on the market for $740,000, she said.

Homes priced right are selling quickly in what Doshier called a "strange market," with many being sold because their owners are unable to make mortgage payments.

The Outer Banks Chamber of Commerce is promoting "OBX-mas" by featuring local merchants on its Web site.

"I don't know what a Chamber of Commerce can do to create jobs if the federal government can't do it," said John Bone, the chamber's executive director. The chamber, he said, is encouraging people to "shop locally during this particularly difficult time."

Richard Bunch, executive director of the Edenton-Chowan Chamber of Commerce, said he's working with one small business that could provide 20 new jobs locally.

With a 9.4 percent unemployment rate, Chowan County is searching for opportunities to put people to work. The former Edenton Dyeing and Finishing plant is being promoted to prospective business clients as the Chowan River site.

Bunch said there has been some interest in the past 60 days, "and hopefully we'll get some jobs back" to the 100,000-square-foot building on 47 acres.

Bunch said he is optimistic that a $160,000 building constructed with Edenton-Chowan Development Corp. funds and owned by the nonprofit soon will be sold.

Yet even banks are feeling the pinch. For the first time in about seven years, total deposits in Chowan County banks are down, said Steve Skinner, director of government lending for Gateway Bank's Edenton office.

According to the Federal Deposit Insurance Corp.'s Web site, he said, bank deposits in the county dropped to $189 million in June 2007 from $191 million in June 2008. Dare County banks saw their deposits dip to $900 million from $969 million in the same period, he said.

Counties like Pasquotank, however, are virtually recession-proof, Skinner said, because of the presence of the Coast Guard, Elizabeth City State University and College of The Albemarle. Total deposits at its banks rose to $955 million from $889 million in the same 12-month period, he said.

Not every sector of the economy is suffering.

Enrollment at College of The Albemarle, with campuses in Elizabeth City, Dare County and Edenton-Chowan, climbed 12 percent this fall compared with last year, COA President Lynne Bunch told local leaders at a recent Edenton-Chowan Chamber of Commerce economic summit.

Still, as the national economy continues to sink, unemployment is expected to climb, especially in sectors such as boat building, tourism and construction.

The newest jobless rates for the state's 100 counties will be released on Dec. 2.