Asheville, nestled in the Blue Ridge Mountains of North Carolina, traditionally boasts one of the strongest job markets among the state’s midsize cities. However, recent data from the North Carolina Department of Commerce shows Asheville now leads the state with a troubling 6 % unemployment rate—the highest of any city in North Carolina as of January 2025.
This article explores the factors behind the surge in joblessness, including the lasting economic impacts of natural disasters, mismatches in job skills versus available openings, and mounting financial and mental health barriers—while also highlighting potential paths to recovery.
A New Low for Asheville
In January 2025, Asheville recorded an unemployment rate of 6 %, surpassing Rocky Mount and Fayetteville—each hovering around 5 %—and far above Raleigh’s 3.2 % rate. This stark rise marks a dramatic reversal: back in September 2023, Buncombe County, which encompasses Asheville, had the lowest unemployment rate in the state at just 2.5 %—it’s a sharp climb to worst in the state within 16 months .
A broader snapshot from April 2025 highlights Asheville’s metro area leading in unemployment among seven urban centers in North Carolina, with a county-level rate of 4.8 %, against a statewide average of 3.7 %.
Storm-Battered Tourism Sector
The key catalyst: Tropical Storm Helene, which swept across Western North Carolina six months prior. The storm inflicted severe damage to infrastructure and flooded neighborhoods, triggering widespread business closures and shifting unemployment from 2.5 % to 8.8 % in October 2024 alone.
The local economy, deeply anchored in tourism, dining, and outdoor recreation, was hit especially hard. Restaurateurs in Asheville reported mass layoffs and permanent closures; many hospitality workers left the region entirely due to lost wages and prolonged shutdowns. As one chef explained, without water and power, “a large swath of the area’s residents are without work”.
This economic knock-on extended to hotels, attractions, and recreation businesses like rafting and zip-lining, all of which depend on functional infrastructure and visitor interest. Though some sectors saw temporary job gains in cleanup and debris removal, these roles were not sufficient to offset the broader economic downturn.
Not a Lack of Openings—But of Workers
Despite high unemployment, the region didn’t experience a shortage of job postings. According to the Mountain Area Workforce Development Board, there are roughly 20,000 active job openings, especially in health care, manufacturing, construction, and debris removal.
“The issue isn’t jobs—it’s unemployment,” states Andrew Berger-Gross of the N.C. Department of Commerce.
Two significant challenges impede re-employment:
- Skills and Job Mismatches
Many displaced workers hail from tourism and hospitality backgrounds—barista, server, bartender—positions that don’t readily align with roles in construction, healthcare, or manufacturing. The learning curve and certification requirements act as barriers. - Personal and Financial Obstacles
The hurricane’s fallout isn’t just economic—it’s deeply personal. Many impacted residents lost housing or transportation, while others contend with emotional trauma. Without stable living conditions or mental health support, returning to work becomes difficult, even when jobs are available.
Unemployment Aid in Crisis
Complicating matters further, the state’s disaster unemployment assistance system has faltered. Local officials report people struggling to navigate claims, receiving partial benefits, or facing outright denials—particularly if returning to part-time roles.
A state senator commented, “Either they’ve applied and haven’t gotten [aid], or they’ve been turned down because they’re back at work a little bit, but not full time”. Multiple sources suggest the system is overloaded and under-resourced, leaving residents caught in limbo.
Silver Linings and Ongoing Risks
That said, there are early signs of recovery:
- Open positions remain abundant, signaling active hiring in many industries.
- Metrics like hotel occupancy and retail sales show upticks, suggesting tourism is attempting a comeback.
However, Asheville’s recovery faces continued threats from secondary disasters. Western North Carolina is still dealing with wildfires, poor air quality, and lingering mental health trauma—factors that may temper tourism resurgence and economic normalization during the spring and summer seasons .
Strategies for Sustainable Recovery
Local leaders and agencies are deploying several strategies to rebuild Asheville’s workforce and economy:
- Targeted Retraining Programs
Organizations like the Mountain Area Workforce Development Board are expanding training tracks into construction, health care, and logistics to help displaced workers transition. - Infrastructure & Support Services
Advocates are pushing for boosted access to mental health counseling, transportation aid, childcare assistance, and housing support—critical elements for helping individuals rejoin the workforce. - Tourism & Disaster Resilience
The Asheville Chamber of Commerce is working to attract spring visitors for wildflower season, while local authorities invest in wildfire prevention and emergency-readiness plans to safeguard against further disruptions.
Broader Context
Asheville’s 6 % unemployment rate contrasts with North Carolina’s statewide rate of around 4 %, and more rural counties like Camden (2.8 %). It serves as a stark reminder: even economically vibrant cities can be vulnerable to climate-related shocks and underlying structural fragilities.
This local issue reflects a larger trend: among 389 U.S. metro areas, Asheville saw one of the steepest unemployment spikes between December 2023 and December 2024—rising by 2.6 percentage points.
Conclusion
Asheville’s status as North Carolina’s unemployment leader is a cautionary tale of how quickly natural disasters can ripple through an economy, especially one reliant on tourism and hospitality. The city now finds itself at a crossroads—armed with job openings, strategic planning, and community will, yet challenged by ongoing environmental risks and personal hardships.
Sustained recovery will hinge on several factors: bridging skills mismatches, delivering effective support services, and instilling resilience into Asheville’s economic foundation. If policymakers and organizations can address these interconnected issues—and do so swiftly—the city may once again climb out of its current downturn. But failure to act risks not only prolonging the jobless crisis, but deepening social and economic divides that could take years to heal.