Aug. 23--For the first time in four years, unemployment in the Triangle broke the 5 percent barrier, coming in at 5.1 percent.

"Five percent is considered to be full employment," said Mark Vitner, a Wachovia economist. "5.1 percent is still a relatively low unemployment rate but higher than we usually see in the Triangle."

The 5.1 unemployment rate for July, up from 4.8 percent in June, is the highest rate for the eight-county Triangle region -- including Durham, Johnston, Orange and Wake counties -- since December 2003.

Local unemployment data for July was released Friday by the N.C. Employment Security Commission and adjusted for seasonal fluctuations by Wachovia.

The driving force in the higher unemployment rate was an uptick in the number of people, especially teenagers, looking for work, Vitner said. But the number of jobs fell as well.

The labor force -- the number of people who have jobs plus job seekers -- rose by 5,500 people in July compared with June, Vitner said. The number of jobs fell by 2,000.

Teenage unemployment is at a 25-year high nationwide, possibly because more teens are seeking work to earn gas money, Vitner said. The sour economy means employers didn't hire as many teens as in summers past.

N.C. Bankers Association economist Harry Davis noted that the state unemployment rate in July rose more than twice as much as the rate in the Triangle.

"If you look at economic growth and employment, Charlotte and the Triangle continue to lead the state," said Davis, also Appalachian State University professor.

The state reported a 6.6 percent jobless rate for July, up from 5.9 percent in June. U.S. unemployment in July was 5.7 percent.

Vitner said the unemployment rate could decline as teens return to school, but he would view that as a blip rather than a trend.

"I think unemployment will continue to trend higher this year and into 2009 to 5.5 percent-to-6 percent, which is very high for the Raleigh-Durham area," he said.

Local companies that have cut jobs recently include: InnerPulse, a small Durham company developing a new kind of defibrillator, which eliminated 18 jobs in June; GlaxoSmithKline, which laid off 22 chemists in Research Triangle Park and 90 production workers in Zebulon; and American Airlines, which is laying off about 35 workers at RDU. Cary yellow pages publisher R.H. Donnelley announced a new round of cost-cutting that likely will include job cuts.

On the plus side, this month the U.S. subsidiary of an Indian consulting firm, HCL Technologies, announced plans to create more than 500 jobs in Wake County.

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