| Scope Activities related to the production and distribution of goods and services in a particular geographic area constitute its “economy.” The economy of the Charlotte region has evolved from one strongly based on textiles and manufacturing into one with a more diverse and well-distributed base. The area’s economy is well-represented in industries as varied as banking and finance, tourism, motorsports, retail, information, health care and education. This diversity of employment has protected the area from downturns in the economy when other places have seen job layoffs and high unemployment. The indicators in this report are employment (measures of persons working or looking for work, such as the civilian labor force, employment, unemployment, and the unemployment rate), employment by industry (a measure of jobs), average annual wage by industry, number of establishments by industry, per capita income and median household income. The map shown on this page represents results from one indicator in this theme area.
Regional Context A downturn or upturn in the economy can dramatically change other indicators in this report. Changes in other indicators can similarly affect the economy. The closing of a major business can spur people to move out of the area, while a thriving economy can draw people from across the country, increasing the population. Arts and cultural activities may see a decrease in contributions when the economy struggles, while a booming economy may boost donations. Education and the economy have a symbiotic relationship. If there is not an educated workforce, the economy will suffer, and if the economy suffers, the education system suffers. There has long been an argument that environmental regulations slow economic growth; however, with air and water quality gaining importance, regional initiatives are showing the two areas can work in harmony. A stable economy can support government activities and encourage residents’ participation in the community. A downturn in the economy can lead to lower incomes, a decline in health, more homelessness and deterioration of social well-being, such as more crime and public safety problems. A poor economy means less money being spent, less money available for taxes (government) and thus less money for government services such as roads and improvements (transportation). The economy cuts across all the other themes in the Charlotte Regional Indicator Project: arts and cultural life, education, environment, government and citizen participation, health, housing, public safety, social well-being and transportation. Summary of Indicator Results The overall employment picture for the Charlotte region has shone brightly since the early 1990s. Both wages and per capita income have steadily risen. Per capita income in 1990 was $18,641, while in 2005 it was 80 percent higher, at $33,639. The region’s labor force also has grown dramatically. In 2006, the labor force was a third larger than it was in 1990 — increasing from 911,385 to over 1.2 million. Unemployment rates peaked in 2003 at 6.8, dropping since then to 5.1 in 2006. Employers in Mecklenburg County pay the highest average annual wages in the region, and the industries with the highest wages in the region are “Utilities” and “Management of companies and enterprises” (businesses that manage other companies). The lowest wages are in “Accommodations and food services” and “Retail trade.” “Finance and Insurance” ranks fourth in average annual wages in the region, with an average annual wage of $42,114 in 2005. A great disparity exists, though, for median household income per county. In 2004, the highest median household income for the region was Union County at $56,218, and the lowest, Anson at $29,320. Though “Manufacturing” as a category declined relative to other job categories over the six years studied (2000 through 2005), it remains strong in the Charlotte region, representing 15.2 percent of all employment, the highest percentage of jobs for any industry category. As manufacturing’s share of jobs has diminished, two categories that have seen significant gains are “Finance and insurance” and “Health care and social assistance,” currently at 5.8 percent and 10.4 percent of all jobs, respectively. Both categories are part of the service sector. This rise in the service sector is also borne out by the data on establishments by industry. So even as employment has been strong in the region from 2000 through 2005, the mix of jobs and industries is changing. If manufacturing continues to shed jobs, the region will need to focus on creating jobs in other industries. Missing and Future Indicators The report’s authors considered several other indicators but didn’t include them due to priorities among indicators, data availability and time constraints. The economic impact of travel was a low priority in light of other indicators, while a “New Economy Index” was not available on a county basis (only statewide). The report’s authors also found data difficult to gather on two key topics they hope to include in future reports: purchasing power and the economy of the older population. Other indicators worthy of examination for future inclusion include measures of venture capital, entrepreneurship and occupational trends and projections. Perhaps a regional index could be created to track venture capital and entrepreneurship, given that the only data found to date is on the state level. With occupational trends and projections, the only data found relate to North Carolina workforce development and are not broken out by county. A major need exists for better comparisons of data across state lines. The 14-county Charlotte region is unique because it does not match any other geographic footprint, such as the Metropolitan Statistical Area or a Combined Statistical Area. The region also crosses state lines, making county comparisons difficult unless the data is available on a federal basis. |