Although the Fed resisted raising interest rates on May 19, inflation hawks on the Federal Open Market Committee are gaining ground as they point to mounting inflation factors. With intense price competition and tight labor markets, businesses have little choice but to continue spending on labor-saving equipment. Two states warrant separate mention. Manufacturing employment remains flat in all five states. South Carolina and Georgia are projected to lead the way, followed by North Carolina and Tennessee.
Wage inflation is likely to continue to increase.
In North Carolina revised figures show that almost 120,000 net new jobs were added to economy in 1997, putting last year slightly ahead of the previous five years in which 100,000 to 110,000 new jobs were created each year. The service and finance, insurance and real estate sectors were most responsible for the state's job growth. Banking and finance, health care and other service sectors are expected to continue leading the creation of new jobs. Revised job growth figures for 1997 show the three major metropolitan areas accounted for more half of the net new jobs in the state. The entire report and individual charts may be viewed and printed.