unemployment rate

The unemployment rate dropped significantly in November from 8 to 7.4 percent.  The rate has fallen 2 percentage points in the past year and is the lowest it’s been since 2008.  But that’s not all cause for celebration. 

The labor force decreased by about 8,100.  Allan Freyer, an analyst with the N.C. Budget and Tax Center, says the rate dropped so much because many people just became discouraged and stopped looking for work. 

Ben Bradford / WFAE

One of the fears about the federal budget cuts known as the sequester is that they could shrink the economy and trigger large layoffs. At the same time the government is cutting its program that tracks large layoffs—because of the sequester.