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Western NC economy on the rise,
index says
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 by
Anna Oakes
Staff Writer
Western North Carolina’s economy is growing steadily, according
to the Western North Carolina Economic Index and Report.
The monthly report, which is compiled at Appalachian State University,
showed that regional economic activity increased 0.5 percent in
December and has grown 3.2 percent in the past six months.
Appalachian professors Todd Cherry, John Dawson and Rich Crepeau
authored the report. Cherry and Dawson teach economics and Crepeau
teaches geography and planning.
“The index continues to increase at a quick pace, indicating
continued strong economic growth for the region,” Cherry said.
Job growth appears to be lagging behind economic growth with an
increase of 401 jobs, the report said.
“December’s job growth was insignificant, but the positive
numbers do continue the four month run of job growth for the region,”
Cherry said.
Advantage West North Carolina and the Appalachian Regional Development
Institute supported the report, Cherry said. The authors of the
report look at economic indicators such as employment, unemployment
and retail sales when compiling a report, Cherry said.
“The region is … separated into two subregions,”
Cherry said. “We have the High Country … that’s
a more retail and service-oriented economy, where the foothills
are more manufacturing-based.
“The foothills … have been hit hard,” Cherry said.
“The reason the [High Country] has done pretty well …
is the fact that it’s tourist-based.”
Watauga County had an unemployment rate of 2.2 percent in December,
the lowest in the state. Watauga’s unemployment rate was 3.6
percentage points lower than the state average.
“Watauga County is unique in the sense that it is very stable,”
Cherry said.
“The university is somewhat the hub of the High Country, and
the university really helps Watauga County remain stable, especially
in the Boone area.
“The problem with Watauga County is wages,” Cherry said.
“People have jobs, it’s just that the pay in Watauga
County is not as high as you would like it to be, especially with
the cost of living.”
Watauga County has had the lowest unemployment rate in the state
for three consecutive months, Boone Chamber of Commerce President
Mike Wagoner said.
“The differential between the Watauga County rate and the
state rate … [has been] at least a margin of 3 percent for
31 straight months now,” Wagoner said.
“Relatively speaking, Watauga County is performing much better
than the other economies in the state.”
An economy geared through the university and year-round tourism
is largely responsible for Watauga County’s success, Wagoner
said.
“I think that we have a diverse business base which helps
us to be insulated from huge swings in the economy,” he said.
The fact that several banks are moving to this region shows that
investors see potential in our area, Wagoner said.
Lonnie Jones is the general manager of Watauga County JobLink Center
and Employment Security Commission.
There is always an increase in the number of people filing for unemployment
in the winter months because of the weather, Jones said.
“Overall unemployment hasn’t been increasing,”
he said.
“I think [the economy] is something the county can be proud
of,” Jones said. Jobs, many in the service sector, have been
increasing, he said.
“I think [Watauga’s economy] is one of the strongest
in the state,” Jones said.
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