It’s not that anyone needed to be told that things economically are bad across the state. However, it is important to quantify the economic damage COVID-19 has had on the state of North Carolina.
On Friday, the state’s unemployment rate skyrocketed to over 12%,
The seasonally adjusted rate of 12.2% represents a nearly 8-point increase from March. The national rate for April was 14.7%.
The federal Bureau of Labor Statistics said it’s the highest seasonally adjusted rate for North Carolina since 1976 when it began keeping records in the manner it currently does. Numerous other states also hit records. The previous North Carolina record was 11.4% for multiple months in 2010, according to state data.WRAL
Inevitably as more and more people are unemployed revenue to the state will drop as well. Considering income tax is more than 50% of the state’s total revenue, this creates a very large hole in the state’s budget. On Friday, the Governor’s office working in tangent with the General Assembly released some pretty dire numbers,
North Carolina’s tax revenues will likely come in nearly $5 billion below what lawmakers expected just three months ago because of the ongoing coronavirus pandemic.WRAL
North Carolina is not alone, in fact the national unemployment rate in April was 14.7%. Whether or not we thought it would be this bad, it doesn’t matter, we are here now. The big question is how quickly do we recover. While the thought of a v-shaped recovery has long such passed. A recovery in a year or two is not completely out of the question. The really good news for North Carolina is that, unlike 2009, the state’s trusts funds are flush and when the recovery does start we won’t be in a two billion dollar hole. Let’s hope voters remember which party is responsible for that in November. (Hint: It was the Republicans)