Employment in North Carolina

The service sector has replaced the goods-producing sector as the leading employer.

North Carolina, particularly its rural areas, has long been a leading goods-producing state. As recently as 1990, goods-producing employment accounted for more than 40 percent of rural jobs. By 2003, that number had fallen to 29 percent of employment in rural areas. In contrast, the service-producing sector grew from 60 percent to 71 percent. Some of the fastest growing segments in rural North Carolina are professional and business services and education and health services, growing by 102 percent and 58 percent respectively

Source: NC Employment Security Commission, 1990-2003

Manufacturing has continued its three-decade decline.

To stay competitive in the global market, traditional manufacturing has had to improve efficiencies and reduce costs by investing in new plants and equipment. Many companies have moved overseas to take advantage of cost savings while those that were not able to compete have closed down. These changes led to a decline in manufacturing of 27 percent in rural counties from 1990 to 2003.

Source: U.S. Department of Commerce, Bureau of Economic Analysis, 1970-2000

Layoffs have devastated many rural communities.

The recession that began in March 2001 increased the speed at which many manufacturers closed or moved overseas, resulting in large numbers of layoffs. From 2000 to 2003, there were more than 70,000 layoffs in rural areas, over 60,000 of these in manufacturing. The layoffs were greatest in textiles, apparel and furniture. For example, more than 190 textile and apparel mills closed from 2000 through 2003, leading to a loss of 31,000 jobs. An additional 125 textile and apparel plants laid off 11,000 workers. The number of layoffs declined significantly in 2004, returning to the pre-recession levels of the 1990s.

Source: NC Employment Security Commission, 1990-2004

Structural economic change has driven up unemployment rates.

Although the recession has taken its toll on rural communities, most job losses are linked to structural changes in the economy associated with the decline of traditional industries. In 1999, four rural counties had unemployment rates above 10 percent. Most of these counties were affected by jobs losses in traditional industries, particularly in manufacturing. As the economy begins to pick up again, and layoffs continue to decline, counties are seeing improvements in their unemployment rates. In 2003, there were 10 counties with unemployment rates over 10 percent; in 2004 the number of counties dropped to only one. However, county rates overall remain higher in 2004 than in 1999, before the start of the recession. Only 12 counties have unemployment rates lower in 2004 than in 1999.

Source: NC Employment Security Commission, 2005

Unemployment rates continue to be higher in rural areas than in urban areas

During the booming economy of the late 1990s as well as the recession and structural change of 2000-2003, one thing has remained constant: rural unemployment has been significantly higher than urban unemployment. From 2000 through 2004 rural unemployment levels have been at least one percentage point higher than the urban rate and as much as two points higher. During this same period, North Carolina moved from the 12th lowest unemployment rate in the nation to the 5th highest in 2002. As the economy has picked up in recent years, unemployment rates have started to drop in both rural and urban places, but numbers have not returned to pre-recession levels. In 2004, the state's unemployment rate was still higher than 30 other states.

Source: N.C. Employment Security Commission, 2000-2004

Workers continue to have a difficult time finding work after a layoff

While the national recession of 2001 was short, lasting only from March to November, the recover remained "jobless", partially due to the structural changes in the economy. For many workers who lost their job, finding a new job has been difficult. Of rural workers laid off in 2001, 59 percent found work within a year. Slightly less than half (49 percent) of rural dislocated workers laid off in 2002 were able to find a job within a year.

Source: N.C. Employment Security Commission, 2003

Workers going back to work earn less money

Family budgets continued to suffer even when they went back to work. Those new jobs pain, on average, slightly less than three-quarters of their previous wage. Some workers were worse off than others. One-third brought home less than half their previous earnings.

Source: N.C. Employment Security Commission, 2002