Banking boomtown loses one of its biggest players. Charlotte, N.C. is the country's second largest banking center, but the recent failure of Wachovia has the entire city bracing for fallout from thousands of executive-level layoffs. NBC's Kerry Sanders reports.
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N.C. Unemployment rises to 11%
North Carolina's unemployment rate rose in October to 11 percent, erasing any progress made in recent months and returning the state to the same unemployment rate it had in June.
The figures, released this morning by the N.C. Employment Security Commission, showed that the number of unemployed workers in the state rose by 4,537 in October.
The state's unemployment rate has been above 10 percent since February.
"We've had ups and downs concerning the number of people employed and unemployed, but we haven't experienced any significant changes," said ESC Chairman Moses Carey Jr.
Since this time last year, the number of unemployed workers in the state has increased by more than 174,000.
Federal Reserve Official: Charlotte faces slow recovery
An economic recovery is on the way, though it might take longer in Charlotte than other parts of the country, Federal Reserve senior vice president Matt Martin told a group of local business owners Thursday.
The event, for the Charlotte chapter of the Entrepreneurs' Organization, was part of a 24-hour "entrepreneurial wave" during which EO chapters around the world held similar sessions.
The recession is "almost certainly over," Martin said, but it's still unclear how long the recovery will take.
"It just means overall, things are not getting worse," he said. "It doesn't mean things are getting better."
One crucial factor is consumer confidence and the spending that will follow, Martin said. Consumers' expectations are tied to what's going on in business - particularly regarding workers' wages and job losses, which have slowed but not stopped, he said.
He expects employment to level off or begin to grow in the near future, which "might be a psychologically pretty important piece of data for consumers," he said. Economists say the unemployment rate will remain above 9 percent through the end of 2010, Martin told the group.
Looking forward, cities that will recover first are those that missed the worst of the housing boom and bust and that have some key industry that's in good shape, he said.
In Charlotte, while housing prices didn't climb or fall as dramatically as in other areas, the number of permits is down significantly. That, combined with the hit to the financial sector, could mean Charlotte will recover slower than other areas, Martin said.
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Sources: McClatchy Newspapers, Charlotte Observer, MSNBC, Recovery.gov, Wikipedia, Google Maps
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