Current Positive Economic News? Cheer, Then Take a Breath and Look Deeper at the Divided NC Economy

<p>There have been numerous national reports of positive economic information over the past six months. Unemployment is low, economic growth is steady and even growing, jobs are being created and 10 years later, we are finally moving beyond the devastating impacts of the recession. It would appear that CED professionals should be preparing for how to handle the coming growth. But before launching the celebratory party, it would be better instead to look at the actual distribution of the data that lies underneath the aggregate headline numbers, and consider several disturbing, stark examples of the divided NC economy.</p> <p>The most recent (December 16, 2016) North Carolina Employment Condition report from the Wells Fargo Economics Group is an excellent example of the need to consider the whole picture of job data. The first headline refers to a “solid month of hiring”; a second states “New Data Dispute Recent Slowdown in Job Growth.” These are both true and positive. Yet the report also highlights trends that could cause NC CED professionals pause.</p> <p>First, one can consider the concentration of the good news. Unsurprisingly, the growth is centered in the largest MSAs, particularly the Triangle and Charlotte areas, pointing to the continuing divide between rural and urban areas. This is not a new story, but it is important to note that the gap is continuing to widen, and that even within the strong growth metro areas, there are challenges.</p> <p>Second, workforce growth has actually outpaced job creation, leading to a slight increase in the unemployment rate. As highlighted in several additional [...]</p>