Fed job report shows gains, but Triangle economists warn of uncertainty

RALEIGH, N.C. (WTVD) -- New data from the Federal Reserve, showing a drop in unemployment and stronger-than-expected job growth last month, is offering signs of economic strength, even as some consumers in the Triangle remain uneasy about rising costs and global uncertainty.

Economists say the region's economy continues to outperform many parts of the country, but caution that revisions to earlier job numbers and geopolitical developments could affect spending and growth in the months ahead.

Consumers in Raleigh expressed skepticism Saturday about whether recent economic gains are reaching everyday households.

"A lot of things need to be fixed in this economy," said Erica Williams, who was visiting Raleigh.

Her concerns echoed those of others reacting to the Federal Reserve's latest data, which showed a decline in the unemployment rate and higher-than-expected job growth for the previous month.

"Improvements for everything, especially job wise, you know, because as everything else goes up, the pay isn't," said Christopher Williams, who was also visiting Raleigh.

Economists at the University of North Carolina analyzed the figures, noting that the overall job picture remains positive, but not without warning signs. Christian Lundblad, a research fellow at the UNC Kenan Institute, said the Triangle continues to benefit from long-term advantages.

"I continue to be relatively bullish about our area. I mean, this is one of the fastest growing areas," Lundblad said.

Those strengths include major research universities, a robust biotechnology sector and continued population growth, factors economists say have helped insulate the region from broader economic headwinds.

Still, Lundblad and other economists pointed to revised job loss numbers from the previous month as a potential concern, suggesting momentum may be slowing.

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"The kind of rolling average, as it were, of job creation is a bit more muted," Lundblad said.

Beyond domestic indicators, economists are also watching international developments, particularly in the Middle East, for their potential impact on energy prices and inflation.

"I do think a very big sort of wrench that's been thrown into the works over here is the Iranian conflict and the potential for energy costs to sort of come in here and make that all more complicated," Lundblad said.

Higher fuel prices are already affecting consumers' daily decisions. Williams said gas prices have become noticeably more painful over the past year.

"The gas is horrible compared to what, a year ago. It's ridiculous," she said.

The rising cost of fuel is forcing some to reconsider how often they use their cars.

"You don't want to take the car everywhere because then you have to save it to go to work and different things like that," Williams said.

Despite those concerns, economists say the Triangle remains better positioned than many regions across the country because of its diverse and innovation-driven economy. They expect continued resilience, even as households and businesses navigate higher prices and uncertainty both at home and abroad.