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North Carolina: Where Is the Job Growth? <br />May 26, 2011 <br />Goods Producing <br />Government <br />Educ. & Health Svcs. <br />Financial Activities <br />Other Services <br />Leisure and Hospitality <br />Trade, Trans. & Utilities <br />Information <br />Prof. & Bus. Svcs. <br />Total Nonfarm <br />Charlotte <br />• After several months of flat job growth, <br />Charlotte and the surrounding area are <br />beginning to experience better job growth. <br />However, the bulk of the growth has been <br />concentrated in the professional and business <br />services and information sectors. The area's <br />total employment remains far below its pre - <br />recession peak. <br />• With the declines in manufacturing and <br />government employment, which combined <br />represents 27 percent of the area's employment <br />base; the area will continue to lag the nation in <br />job growth. Cutbacks in government spending <br />have reduced employment in the public sector. <br />In addition, the local budget cuts have also <br />affected education - related employment with <br />layoffs in the local school district. <br />• Charlotte's housing market remains depressed <br />as single - family housing permits continue to <br />trend downward. Multi- family home <br />construction is showing some signs of <br />stabilizing. Prices in the region are not declining <br />as rapidly, but their downward trajectory <br />continues. Like many other areas around the <br />state, the slowdown in population growth will <br />likely hold back the housing market. <br />• We expect the Charlotte metro area will <br />continue to face slow employment growth tied <br />to the permanent loss of manufacturing jobs. <br />The personal income situation should begin to <br />improve as personal income growth gradually <br />recovers for higher wage earning positions in <br />business and professional services. <br />50 <br />40 <br />30 <br />20 <br />10 <br />0 <br />Charlotte MSA Population Growth <br />Average by Decade, In Thousands <br />1980s 1990s 2000s 2010 <br />WELLS FARGO SECURITIES, LLC <br />ECONOMICS GROUP <br />Charlotte MSA Employment by Industry <br />Year - over -Year Percent Change, 3 -Month Moving Average <br />March 2011 <br />-4.0% -2.0% 0.0% 2.0% 4.0% 6.0% <br />Charlotte MSA Employment Cycles <br />Percent Change from Cycle Peak <br />12.0% <br />10.0% <br />8.0% <br />6.0% <br />4.0% <br />2.0% <br />0.0% <br />-2.0% <br />-4.0% <br />-6.0% <br />-8.0% <br />-10.0% <br />12.0% <br />10.0% <br />8.0% <br />6.0% <br />4.0% <br />2.0% <br />0.0% <br />-2.0% <br />-4.0% <br />-6.0% <br />-8.0% <br />-10.0% <br />0 4 8 12 16 20 24 28 32 36 40 44 48 <br />30 <br />50 25 <br />20 <br />40 <br />15 <br />30 <br />10 <br />20 <br />5 <br />10 <br />0 <br />Charlotte MSA Housing Permits <br />Thousands of Permits, Seasonally Adjusted Annual Rate <br />Single - Family: Mar @ 4,356 <br />— Single- Family, 12_ Month Mov. Avg.: Mar @ 3,846 <br />— Multi - Family, 12 -Month Mov. Avg.: Mar @ 1,458 <br />CLT Single - Family Avg. (1988 to 2003): 11,055 <br />. A ............ ^ ............................ ........................................ ............................... <br />90 92 94 96 98 00 02 04 06 08 10 <br />Source: U.S. Department of Commerce, U.S. Department of Labor <br />and Wells Fargo Securities, LLC <br />30 <br />25 <br />20 <br />15 <br />10 <br />5 <br />0 <br />7 <br />Attachment number 1 <br />1 -1 Page 614 <br />