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Editorial |
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The OTHER terror Oct. 26 - The Sept. 11 attacks on American have taken their toll on our sense of security and peace at home but here in Lincolnton and across the state another enemy is stalking our workforce and ravaging our pocketbook. It’s our anemic economy. A little more than a year ago we bragged about our economy, even gloated over it. Stocks kept going up and unemployment levels were at record lows. Now, we are wondering when all the layoffs will stop and when the sales will pick up. Each day we hear reports of new, massive layoffs and shutdowns. Recently the Timken Co., one of Lincoln County’s biggest employers, was among the long list of companies reporting dismal earnings. “The U.S. manufacturing sector has been in a recession for an entire year, with factory output declining for the past 14 months,” said W.R. Timken Jr., chairman and chief executive officer, in announcing third quarter earnings were down 9 percent from a year ago. He didn’t see any early turn-around. “The Sept. 11 attack has created more pressure on the economy, and this will become even more apparent in the fourth quarter.” The Timken Co. makes roller bearings and alloy steels, products used in sectors of the economy now in a slowdown —automotive, industrial, aerospace, rail and others. So far, Timken hasn’t announced any new wave of layoffs. We will keep our fingers crossed, knowing that other industries in our area have eliminated jobs. Our unemployment rate reflects a higher than usual number of jobless claims. In August it was almost at 7 percent, well above a state average of close to 5 percent. New figures for September will be reported later this month. This climate not only finds us with more unemployed, but it restricts the growth in our business community and discourages the spending and shopping needed for the kind of prosperity we have come to expect. While employment is down, jobs continue to grow instead of diminish when you look at the state as a whole. Statewide preliminary numbers show that total non-agricultural employment has increased by 20,900 — a .5 percent increase over the month and 32,4000 over the year, to 4,001,500 jobs, an .8 percent increase, the State ESC said in September. Actually, North Carolina is nearly dead-even with the rest of the nation for September in its unemployment rate — 5 percent compared to 4.9 percent nationally. It is the state’s manufacturing sector that is taking the biggest hit. Total manufacturing employment dropped by 6,200 in August. That brought the total jobs lost in that category for the year to 45,300. So, when will it all end? We believe the slump will end before, or by, mid-year 2002. The rebound will likely be sparked by the automobile and housing markets, which are now luring customers in with the lower borrowing rates. While Americans have put off travel plans and canceled some of their major financial decisions, look for them to invest in their homes and family during a healthy holiday season. It would be nice to have these terrible times completely behind us by this time next year.
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© 2001 Lincoln Times-News |
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