Highlights:
DMJPS is pleased to provide a statewide quarterly economic report for North Carolina. In the second quarter of 2022, the state of North Carolina experienced positive gains across the majority of economic indicators. Asheville metro led second quarter year-over-year employment gains among N.C.’s 15 metro areas. Asheville, Durham-Chapel Hill, and Raleigh metros tied as having the lowest unemployment rate in the state. Charlotte metro led North Carolina’s metros in average hourly wages with an average wage higher than both the state and nation. Raleigh metro led state metros in the same-home appreciation rate change year-over-year.
In the third quarter of 2022, the state of North Carolina’s average employment at approximately 4.8 million marked a high point looking as far back as 1993. The Charlotte Metro led third quarter year-over-year employment gains among the state’s fifteen metros while the Asheville Metro had the lowest unemployment rate. The Charlotte Metro led in average hourly wages for the quarter, exceeding both the state and national averages. The Durham-Chapel Hill Metro led in same-home appreciation rate change year-over-year.
- In the third quarter of 2022, the state of North Carolina gained an average 4.0 percent employment, or 183,800 jobs compared to a year earlier.
- Averaging 3.6 percent during the third quarter of 2022, North Carolina’s unemployment rate was equal to the national average. At 2.9 percent, the Asheville Metro had the lowest average unemployment rate among the state’s fifteen metros.
- All major industries with the exception of Mining and Logging added employment in the third quarter of 2022 when compared to a year earlier. Professional and Business Services led gains with approximately 53,000 new net jobs.
- North Carolina’s average hourly wage was $30.12 in the third quarter of 2022, an increase of 6.2 percent year-over-year. The Charlotte Metro led the state’s fifteen metros with an average hourly wage of $33.21.
- Taxable retail sales in North Carolina reached approximately $57.7 billion in the third quarter of 2022, an 11.7 percent increase compared to a year earlier.
- Special feature: Educational Attainment estimates for the state’s fifteen metros revealed that Raleigh (58 percent), Durham-Chapel Hill (55 percent), and Wilmington (51 percent) had the highest percentages of the population aged 25+ with an associate’s degree or higher.
Detailed Analysis
Employment
In the third quarter of 2022, employment in the state of North Carolina averaged 4,780,600 employees- the highest quarterly average dating back to 1993. Third quarter employment increased by an overall average of 4.0 percent when compared to a year earlier (Figure 1 and Figure 2). This growth rate represented an average increase of 183,800 jobs. The nation’s comparable growth rate of 3.9 percent in the third quarter was slightly less than the state’s (Figure 2).
Figure 1
Total Employment
Monthly Year-to-Year
Percent Change
Source: US Bureau of Labor Statistics
With the exception of the Rocky Mount Metro, each metro in the state of North Carolina gained employment in the third quarter compared to a year earlier, as did the state and nation (Figure 2). The state’s top three metros for percentage rate of employment gain were Charlotte (5.3 percent), Raleigh (4.8 percent), and Durham-Chapel-Hill (4.1 percent). These three metros outpaced the growth rate of the state’s overall 4.0 percent and nation’s 3.9 percent.
Figure 2
2022 3Q Average
North Carolina Metros
Employment One-Year Percent Change
Source: US Bureau of Labor Statistics
Averaging 3.6 percent over the third quarter of 2022, North Carolina’s unemployment rate was equal to the national average (Figure 3 and Figure 4). This marked one of seven times the state dropped below 4.0 percent looking as far back as 1976. The unemployment rate in the state translated to roughly 186,500 unemployed, a decline of 20.2 percent compared to a year earlier. The state metros with the lowest third quarter unemployment rates were Asheville (2.9 percent), Durham-Chapel Hill (3.0 percent), and Raleigh (3.1 percent); whereas Rocky Mount had the highest unemployment rate at 6.0 percent.
Figure 3
Unemployment Rate (%)
Source: US Bureau of Labor Statistics
Figure 4
Unemployment Rate (%)
2022 3Q Average
Source: US Bureau of Labor Statistics
In the third quarter of 2022, all major industries in the state of North Carolina gained employment compared to one year earlier except for Mining and Logging. Professional and Business Services’ net increase of 53,000 jobs and Leisure and Hospitality’s net increase of 41,900 jobs led overall employment gains and made up over half of the state’s total non-farm employment growth of 183,800 (Figure 5).
Figure 5
North Carolina – 2022 3Q
Major Industry Employment
One-Year Change
Totals rounded to nearest 100
Source: US Bureau of Labor Statistics
Wages
Private industry average hourly wages in the state of North Carolina equaled $30.12 in the third quarter of 2022, a 6.2 percent increase from a year earlier (Figure 6). This marked a decline from the previous four quarterly year-over-year percentage gains. The metros with the highest third quarter hourly wages were Charlotte ($33.21), Raleigh ($32.20), Durham-Chapel Hill ($32.18), and Greenville ($30.75). These four metros exceeded the state’s overall average of $30.12 while the Charlotte Metro also exceeded the national average of $32.22 (Figure 7).
Figure 6
North Carolina
Average Hourly Wages
Private Industry
Source: US Bureau of Labor Statistics
Figure 7
North Carolina Metros – 2022 3Q
Average Hourly Wages
Private Industry
Source: US Bureau of Labor Statistics
Housing
At 22.8 percent, the state of North Carolina’s same-home annual appreciation rate in the third quarter surpassed the national rate of 16.6 percent (Figure 8). Durham-Chapel Hill ranked first among the state’s metros at 25.5 percent. All state metros exceeded the national rate.
Figure 8
North Carolina Metros
Same-Home Annual Appreciation Rate (%)
2022 3Q
Source: Federal Reserve Bank of St. Louis
Estimated activity for new residential building permits in the state of North Carolina totaled 21,667 units in the third quarter of 2022 for single family and multi-family units combined (Figure 9). This was down 9.3 percent from one year earlier. The total third quarter value of $4,997,311,000 ($5.0 billion) was down 5.3 percent from one year earlier and down compared to the previous two quarters in 2022. Permitted multi-family units totaled 6,610 and accounted for 30.5 percent of building permits.
Figure 9
North Carolina
Estimated Residential Building Permits Activity*
*Based on a survey of permitting agencies. The Census Bureau provides estimates for any missing agency data, which typically amounts to less than 20% of the total permits.
Source: US Census Bureau
*Based on a survey of permitting agencies. The Census Bureau provides estimates for any missing agency data, which typically amounts to less than 20% of the total permits.
Retail Sales
Taxable retail sales in North Carolina totaled $57,674,457,740 ($57.7 billion) in the third quarter of 2022. This represented an 11.7 percent increase compared to a year earlier and exceeded both 2020 and 2021 third quarter sales (Figure 10 and Figure 11).
Figure 10
North Carolina
Total Taxable Retail Sales
Includes collections of penalties, interest, and sales & use tax; and may reflect activity from prior periods.
Source: NC Department of Revenue
Includes collections of penalties, interest, and sales & use tax; and may reflect activity from prior periods.Figure 11
North Carolina
Total Taxable Retail Sales
Quarterly Year-to-Year Change (%)
Includes collections of penalties, interest, and sales & use tax; and may reflect activity from prior periods.
Source: NC Department of Revenue
Includes collections of penalties, interest, and sales & use tax; and may reflect activity from prior periods.Special Feature:
Educational Attainment
Educational attainment in the state of North Carolina for the population aged 25 years and older with an associate’s degree or higher was estimated at 43 percent in 2021 (Figure 12). Three of the fifteen state metros estimated over 50 percent with an associate’s degree or higher: Raleigh (58 percent), Durham-Chapel Hill (55 percent), and Wilmington (51 percent). The Greenville Metro had the largest percentage with an associate’s degree at 13 percent. The Raleigh Metro had the largest percentage with a bachelor’s degree at 30 percent. The Durham-Chapel Hill Metro had the highest percentage with a graduate or professional degree at 23 percent.
Figure 12
North Carolina Metros
Educational Attainment Population Age 25+ with Associate’s Degree or Higher
Source: US Census Bureau, 5-year Estimates (2017-2021)
Source: US Census Bureau
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End note: Data reflects a snapshot or point in time, December 2022, and may be subject to periodic adjustment.
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