Report: Hickory metro area among worst in nation for jobs

Hickory has landed on another list, and this one is not something it wants to be known for.

The Hickory-Lenoir-Morganton metropolitan statistical area (MSA) was called one of the 10 worst cities for finding a job, according to a report released Friday by US News and World Report. The report looked at unemployment across the metropolitan areas over a year’s time. The Hickory-Lenoir-Morganton area was the eighth-worst in the country, at 11.7 percent, and one of only two areas on the east coast.

The other was Atlantic City-Hammonton, N.J., at 12.4 percent. Rounding out the list were seven areas in California, six of which took the top spots, and Brownsville-Harlingen, Texas.

According to the US News and World Report article, many of the areas on the list can cite the housing bust as a contributing factor.

Catawba County Economic Development President Scott Millar said that’s not the case for this area.

“Our reason is because of our heavy dependence on manufacturing,” he said. “The housing boom and bust didn’t impact us.”

The Hickory-Lenoir-Morganton area may not appear to have a lot in common with Fresno, Calif., or Atlantic City, but there is one similarity.

“What we have to take from this is there is no magic bullet to take and create jobs,” Millar said. “We have to work together and be smart to develop arguments to create jobs in such a competitive marketplace.”

He added that the report doesn’t say anything people the area weren’t already aware of. Burke, Caldwell and Catawba counties have known for some time they were suffering from high unemployment numbers, Millar said.

In November unemployment figures from the NC Division of Employment Security, Catawba’s unemployment rate was 11.4 percent, Caldwell’s was 13.1 percent and Burke’s was 11.7 percent. That’s in line with the area’s MSA unemployment of 11.7 percent, the lowest it’s been in seven months. In June and again in August, the MSA unemployment rate was at 12.6 percent.

In figures released Tuesday, the state’s unemployment rate in December was 9.9 percent. It was 10 percent in November. The national average is 8.5 percent.

Scott Darnell, president of Burke Development Inc., said the area was hurting even before the Great Recession began, as furniture manufacturers began shipping jobs overseas. The recession just exacerbated unemployment.

“There is no quick fix, it’s a long-term solution,” he said. “A lot of opportunities are being created, but it’s going to take a lot of jobs and a lot of these things over time to move these percentages a big number.”

In 2011, Burke County announced more than 600 new jobs throughout the county, including furniture manufacturer Ekornes opening a facility, American Roller Bearing opening another facility and Case Farms adding another shift. Most of those jobs will be filled in 2012.

Millar said Catawba County works to keep the county attractive to industries looking to locate, despite being labeled as having a high unemployment rate.

“There are no easy jobs anywhere. But within commuting distance of us, we have a lot of jobs in the metropolitan area. A spouse can work in Mecklenburg, Winston Salem or Statesville. It’s a fluid marketplace,” he said. “We have a lot of assets we market to different entities.”

Millar said the Top 10 listing by US News and World Report was not one he had hoped for Hickory, but it does point to side issues industries ask about: “Can you get us workers? Can you get jobs for our spouses?”

The Catawba County Chamber of Commerce has spent the last year also trying to combat the problem, working to improve the marketability of the area. It partnered with area agencies, including the EDC and Catawba Valley Community College, looking at jobs initiatives and how to stimulate the economy, said Danny Hearn, president of the Chamber.

It also held a summit with the Western Piedmont Council of Governments to get data on what should be targeted. A plan stemming from this will be unveiled in the coming weeks, he said.

“We’re now in a position to look at a very narrow, focused plan, with all these entities,” Hearn said.

He said one of the things that has crippled the area is the loss of younger workers, ages 25 to 40. He said about a quarter of that age group leaves. The plan that is being worked on looks at how to retain that age group.

Additionally, the plan focuses on entrepreneur opportunities for small business growth, which creates the jobs in the area, Hearn said.

“It also looks at the industrial end. It’s not dead, but the EDC is doing about as good a job as we can ask, but that’s an issue we have to stay on top of. Land, buildings and incentives play into the mix,” he said.

The workforce and skill level also factors in with the educational attainment — that’s where CVCC comes into play, Hearn said.

The older age group is also something to consider. The 55 and older group is an “economic engine all to itself that will need services,” Hearn said.

He added that one thing to look at, when examining rankings like this, is the number of jobs the area lost when manufacturing went overseas.

“We fell so far in the manufacturing sector — at least 30 percent,” Hearn said. “It’s going to take a little while to get back.”

What the community needs is a plan to rally around. He thinks one has been formulated.

“That’s the next step,” Hearn said. “We have the answers and abilities to fix this.”

And while Millar may not yet be able to see an end to the economic recession, he said the number of businesses looking at Catawba County is higher than it was six months ago — a step in the right direction.

Darnell said he also sees hope, saying North Carolina is also a competitive state to do business in.

“It’s just a matter of trying to be aggressive enough and smart enough to compete with every other community in the US trying to recruit the same types of companies,” he said.