Section 01
State of The Industry & Regional Trends
The technology industry has been one of the driving forces in North Carolina’s evolving economy
Over the last two decades, the state has shifted increasingly toward a knowledge-based economic structure. Occupations that were once traditional leaders in North Carolina, such as trade-based jobs, now account for a smaller share of the workforce. Meanwhile, growth in management and knowledge-based occupations has expanded their role in the state’s economic landscape.
North Carolina's Economy by Occupation Group
North Carolina’s Economic Performance
Overall, North Carolina’s economy has performed well over the last decade. Since 2015, total employment has grown at higher rates than the national average. Over the past five years, growth has been even stronger than the national average.
Total Employment Change
A significant contributor to job growth in the state has been population growth, most of which has come from in-migration. Over the last ten years, North Carolina added about 321,390 people ages 25 to 44. This surge of young, working-age residents has accelerated the state’s economy and expanded its pool of workers. There has also been an increase in residents age 65 and older, as more people choose to retire in the state. This can add wealth to the state and spur further economic activity.
Population Change, 2012-2024
Data from IRS tax records demonstrate the sharp increase in domestic migration in recent years. From 2020 to 2022, the state saw net migration reach some of its highest levels in the past decade. Other research supports the notion that North Carolina was one of the states people chose to relocate to during the COVID-19 pandemic and the proliferation of remote work. In 2022, the state not only attracted people from other Southern states, but also from New York and California. The net effect of this influx has brought more wealth to North Carolina. When domestic taxpayers leave the state, they tend to head to other states in the South.
North Carolina Net Domestic Taxpayer Migration
Top In-Bound and Out-Bound Migration States, 2022
| Top 5 In-Bound States | |
|---|---|
|
Florida |
+29,960 |
|
Virginia |
+24,994 |
|
New York |
+24,018 |
|
South Carolina |
+22,585 |
|
California |
+19,782 |
Source: EL calculations based Lightcast 2025.4
Note: Based on IRS data from individuals who file taxes.
| Top 5 Out-Bound States | |
|---|---|
|
South Carolina |
-29,606 |
|
Florida |
-24,485 |
|
Virginia |
-19,747 |
|
Texas |
-14,424 |
|
Georgia |
-13,629 |
This migration trend has helped North Carolina’s economy return to pre-pandemic labor force and employment levels. The state reached its pre-COVID employment benchmark by the middle of 2021 and continued to see steady gains in the following months. Hiring levels then generally softened across the United States as the economy cooled following interest rate hikes by the Federal Reserve. In the fall of 2025, there were two additional rate cuts by the Federal Reserve that could help spur investment and growth. These expansionary measures could help generate future growth in the state.
North Carolina Employment & Labor Force Trends
Source: BLS (2025)
While the overall economy has been trending slowly upward, the tech sector has been moving in the opposite direction. Nationally, large tech companies continue to announce layoffs, and workers are struggling to find new positions. This pattern is evident in North Carolina, where the number of unemployed computer and math workers has risen over the past two years to levels higher than before the pandemic. Initially, some of this downsizing was viewed as a stabilization following the post-pandemic hiring surge, but after many months the trend has sustained rather than improved. Gains in tech industry productivity are likely one contributor.
North Carolina Computer & Mathematics Unemployed Workers
Source: Lightcast 2025.4
Even as overall growth decelerates and the general economic outlook remains uncertain, this report reveals that North Carolina is well positioned to continue being a top performer in the nation.