Oct. 12--Here's some good news: The stock market is closed today.

It's a break from a horrifying week on Wall Street marked by record declines that erased more than a trillion dollars in investors' wealth.

But it's only a temporary lull in a global economic storm that is slamming the once-robust North Carolina economy and its strongest regions.

In the Triangle, layoffs are mounting, and companies are delaying expansion. In Charlotte, residents and businesses are gripped by uncertainty as they await the fate of 20,000 Wachovia workers after the Wells Fargo purchase.

The challenges have tempered optimism that North Carolina would experience a milder downturn than the rest of the nation. North Carolina -- and the Triangle in particular -- did avoid the worst of the housing market plunge. But the worldwide credit crunch is too broad for any area to escape. The economic pain is coming home.

"There's no question the state is facing some difficult times," said Mark Vitner, an economist with Wachovia in Charlotte. "It's not going to be fun."

Charlotte, the nation's second- largest banking center, could bear the brunt of the financial meltdown, a possibility that would have big ramifications for North Carolina as a whole.

The three urban centers of the state -- Charlotte, the Triangle and the Triad -- are the main engines of North Carolina's economy. Charlotte and its suburbs account for more than a fifth of personal income in the state.

A slowdown in Charlotte will cut tax receipts. And that will hurt a driver of the Triangle economy: government.

Gov. Mike Easley has called on state agencies to reduce their budgets by 3 percent in recognition that tax revenue will likely decline.

So far, the Triangle has held up better than the rest of the state and most of the nation.

A recent analysis by Moody's Economy.com found this region to be one of 56 metropolitan areas still growing.

But it is weakening.

In the past two weeks, Sony Ericsson, a mobile-phone maker, announced more than 400 job cuts in Research Triangle Park. The pharmaceutical giant GlaxoSmithKline said it will cut 850 jobs in the U.S. and the United Kingdom, an undisclosed number of them in RTP.

Guilford Performance Textiles will close a Fuquay-Varina plant and put as many as 115 out of work.

"The North American auto industry, a core business unit for Guilford, has been hit hard by the current economy," Chief Executive Shannon White said in a statement. Higher energy costs, tightened credit and a pullback in consumer spending have combined to cause "a significant drop in automobile sales."

Even businesses that haven't shut down or resorted to layoffs are modifying their operations.

Rocky Top Hospitality, which owns several popular Raleigh restaurants, including Bogart's American Grill in Glenwood South and Twisted Fork in Triangle Town Center mall, changed menus at three eateries last week to include lower-priced items.

Dean Ogan, the owner, said customers' responses to his comment card program stress that they want a good product at a modest price.

"The biggest thing I see everywhere is the word 'value,' " he said. "Two years ago, that was never a question."

Recovery in '09?

There's general agreement that the nation is now in recession. By some estimates, the economy could start recovering by the middle of next year. Others say it could be 2010.

The length and depth of the slowdown will determine the full effect on North Carolina.

One thing is certain, though: People in different industries will have different experiences.

Evan Halley, 24, joined Sony Ericsson about 10 months ago after graduating from N.C. State University. He worked in software testing and was among those who lost their jobs earlier this month. Since then, he has had five job interviews and two job offers.

He expects a third soon.

"I was surprised by that given the current economic situation," Halley said.

He has a couple of advantages in the search for work. For one, he's willing to move. Of his interviews so far, only two were in the Triangle. The others were for jobs in Maryland, California and Texas.

Halley also benefits from working in technology. While all sectors of the economy have been hurt by the downturn, technology has not been hurt as much as others.

Many technology companies are flush with cash, which helps them avoid troubles brought on by the credit crunch. And in difficult times, some actually see an increase in demand as businesses look to reduce costs through automation.

Many sectors shrink

In North Carolina, the education and health care industries are also showing employment gains. Manufacturing, retail and construction are in decline.

So, too, is financial services. Julie Witers knows all too well.

In April, she lost her job as a credit analyst with BB&T in Charlotte, and she has yet to find a job.

"The jobs I've applied for, I've never gotten a call," said Witers, 31, adding that she's applied for positions ranging from administrative assistant to financial analyst. "I think it's me and half the people I used to work with going for the same jobs."

In recent years, North Carolina has had a strong track record of attracting new employers. For people in other parts of the country, that's a big draw.

The pace of expansions, though, is slowing. Duke Energy helps recruit businesses to the state, and its economic developers report few new projects coming in. That means job creation could be limited for six months or longer, tightening the labor market and crimping opportunity.

"I couldn't even get a job at McDonald's; that's how bad it is," said Wendell James, 25, of Raleigh.

He lost his job in pool renovation in August and has not been able to find work.

He admits to making mistakes in the past, losing his license, for instance, for driving while under the influence. He didn't go to college, a decision he regrets and says makes the job search more difficult.

But he's trying to get back on track. He's enrolled with the University of Phoenix to get a degree in business management. And he spends at least five hours a day filling out applications and looking for work -- anything that will pay the bills.

"The thing is, I like working," he said. "I like having a sense of accomplishment, and the fact that no one will allow me to work is tearing me up.

"I try to keep my head up," he added. "Something eventually will come up."

jonathan.cox@newsobserver.com or 919-836-4948

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