As NC earns praise for economic performance, some workers feel there are areas for improvement

RALEIGH, N.C. (WTVD) -- In the past few years, groundbreakings and high-profile job announcements have become routine occurrences in North Carolina, as some of the world's biggest companies open or expand operations in the state.

"The tech sector in particular likes our higher educational programs because they can rely on a steady stream of people coming into the workforce," said economist Dr. Michael Walden of NC State University.

Walden added that the state's efforts to establish partnerships between community colleges and businesses have also paid dividends.

"Businesses that come here, for example, if they need skilled workers, maybe in a factory, our community colleges will set up individualized training programs for them," said Walden.

North Carolina has earned national praise for its economic performance, being named the top state for business by CNBC in 2022 and 2023, and second-best in 2024. According to the U.S. Bureau of Labor Statistics, the statewide unemployment rate of 3.7% is markedly lower than the national rate of 4.3%.

"There's a little bit of a chicken and egg. There are good jobs to be had here, a high quality of life. And so, I think companies see that talent want to move here and then I think that the state has made investments," said Dr. Gerald Cohen, Chief Economist of the Kenan Institute of Private Enterprise.

The state's comparatively lower cost of living has also been attractive in both enticing workers and keeping talent in state. According to the US Census Bureau, North Carolina saw the third-largest population increase between July 2022 and July 2023, adding nearly 140,000 residents.

"I think we have a very, very well-developed business recruiting model. It's a combination of a positive public-private sector group that recruits," said Walden, who said he believes the state will make an effort to attract renewable energy companies moving forward.

Room For Improvement?

Still, there are areas where some feel the state could improve.

"Investing in our K-12 education system so that we're building out that pipeline, so it's not that we need people to come from outside the state. It's having people come from within the state," said Cohen.

Though the overall business environment has attracted start-ups and entrepreneurs, local funding doesn't quite stack up compared to other major cities.

"They'll end up going to the Bay Area to get (Venture Capital) VC financing. So that's kind of something (where) we have less of an infrastructure at this point," Cohen explained.

Workers have also expressed concerns. According to a report from StartFleet.io, North Carolina has the second-lowest union participation rate.

"We have that voice and we do use it," said Grant Welch, NC Legislative Political Director for Communications Workers of America.

Welch has worked in the telecom industry for 25 years. Members of the union are on strike against AT&T, holding a rally in Raleigh last week. The union alleges the company has failed "to bargain in good faith." In a statement, AT&T wrote in part:

"Our goal is to reach fair and competitive agreements that recognize the hard work our employees do to serve our customers, with market-based pay and benefits tied to cost of living and projected inflation data. This is true for all employees, management and non-management alike."

In North Carolina, collective bargaining for public sector employees is prohibited. Welch said he believes those efforts limit workers' rights, as he calls on the state to step up in ensuring safety.

"Our state does not require breaks. It does not require lunch periods. We fall short in that," said Welch.

In 2022, the Bureau of Labor Statistics reported that North Carolina was one of just six states with more than 200 fatal work injuries.

"When you look at everything and you look at some of the tragedies we've had over the course of the past few years, especially in the building trades, you know, we've had multiple deaths," said Welch.

Willie Brown, a public works maintenance specialist with the City of Durham, serves as President of the NC Public Service Workers Union, UE Local 150.

"We have a lot of workplace safety concerns (ranging from) heat to COVID (exposure)," Brown said.

Brown said he believes improved working conditions are needed to attract workers and keep up with population growth.

"If you bring in 20,000 more people but don't hire more people to pick up 20,000 more people's trash, then what? Because that's what's happening," Brown said. "The city is outgrowing the workforce and that's what's happening wherever you go. The work is growing, the pay is not, and the city is growing."

North Carolina follows the federal minimum wage of $7.25, with the U.S. Bureau of Labor Statistics finding that 1.1% of all hourly workers 16 and older made minimum wage or lower, a drop from 1.3% in 2023. While acknowledging the overwhelming majority of companies pay above that level, Welch would like to see the rate raised, as well as have the state implement more enhanced unemployment benefits.

"We're not against wealth. We want these companies to succeed. Their success, again, is our success, right? We're working. We want to be at work," said Welch.