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Guilford’s job losses 'shocking’

Sunday, June 19, 2011

— The news about the Great Recession’s impact on Guilford County keeps getting worse.

It starts with jobs, or the lack of them, and trickles down from there.

Last month, the North Carolina Commission on Workforce Development issued a report that says Guilford lost more jobs between 2005 and 2010 than any other county in the state — nearly 11,000.

That number becomes more troubling when it’s compared with Guilford’s larger metro neighbors.

During that same time period, Wake County added nearly 30,000 jobs; Mecklenburg gained more than 20,000.

“The report is grim reading,” said Keith Debbage, a professor of urban geography at UNCG. “I can’t believe we are at the bottom. That is shocking.”

Such numbers will have long-term ramifications.

Those include extended periods of unemployment for those out of work and high levels of joblessness for years to come.

A report last month from the N.C. Budget and Tax Center said that, as of April, the state faced a job shortfall of more than 466,000.

That includes jobs lost since the start of the recession plus those needed to accommodate the continued growth of the working-age population.

At the state’s current rate of job creation, the report said, the shortfall will persist until 2030.

The director of the center, Alexandra Forter Sirota, called the job deficit “daunting.”

Locally, economists say, many of the lost jobs won’t come back and those that do will require skills that many displaced workers don’t have.

For many, the loss of a job brings other losses — health insurance, income, savings, homes, standard of living and retirement.

A report from the Brookings Institution says that between 2000 and 2009, median household income in the Greensboro-High Point area declined 21.4 percent, or about $11,000.

Among the nation’s 100 largest metropolitan areas, the local decline was ranked the 99th largest. It’s also three times the national average.

The area’s poverty rate increased from 10.8 percent to 16.8 percent during the same time period, according to Brookings. That represents more than 50,000 people.

“It’s been a tough decade,” Debbage said. “It reminds us that much work needs to be done.”

One researcher calls the 2000s “a lost decade,” at least when it comes to jobs.

Both the state and the county ended the 2000s with fewer jobs than when the decade started.

“So far,” said John Quinterno, principal at South by North Strategies, a research firm in Chapel Hill, “the current decade has been no different.”

Although it’s true that Guilford added about 4,500 jobs over the first four months of 2011, the county has fewer people working now than in April 2010.

It has nearly 3,800 fewer people working now than a decade ago.

“You guys have struggled,” Quinterno said.

The extent of that struggle can be determined by comparing unemployment numbers.

In April, the jobless rate in Guilford fell to 9.7 percent, down from a high of 11.9 percent in February 2010.

During the two previous recessions — 1990-91 and 2001 — the Guilford rate peaked at 6.1 percent.

Even though the recession ended in June 2009, the local unemployment rate has been above 6.1 percent for 35 consecutive months.

As a reminder of what a healthy economy looks like, Guilford had an unemployment rate of 4.3 percent in April 2007 and 2.1 percent in April 1999.

Economists look back on the 1990s as boom times in North Carolina, as the state added jobs and residents at a rapid clip.

“That state,” Quinterno said, “no longer exists.”

It disappeared because many areas had not fully recovered from the 2001 recession when the one in 2007 hit.

When that happened, Quinterno said, the typical North Carolina household was “ill-equipped to weather the storm.”

A key reason an area gained or lost jobs during the recession depended on its industry mix.

Overall, according to the State of North Carolina Workforce report, Wake and Mecklenburg counties gained employment as a result of their mix of technology, health care and professional services jobs.

Guilford, on the other hand, lost jobs because it relied more on manufacturing, an industry that already had been hit hard by globalization and technology advances, especially in the areas of tobacco, furniture and textiles.

From 2005 to 2010, the top six job-losing industries in the Triad were in manufacturing and all were related to tobacco, furniture or textiles.

Statewide, manufacturing employment has declined since the mid-1990s.

Economists call this a “structural shift.” In Guilford, it means moving from a manufacturing-based economy to one focused on service and technology jobs.

“Why hasn’t Greensboro rebounded as some other areas of the state?” said Michael Brown, an economist with Wells Fargo Securities in Charlotte. “It’s taking time for the area to retool its labor force.”

Economists say the decline in manufacturing jobs, hastened by the recession, will continue as firms adopt new production processes that will require fewer, but better trained, workers.

“Those individuals that have traditionally relied on manufacturing employment will continue to face an uphill battle as the evolution of the state’s economy leaves this portion of the population behind,” said a May report on North Carolina’s job outlook by Wells Fargo. “This economic evolution toward a higher skilled workforce will no doubt be a slow and painful transition.”

Even so, observers say they’re optimistic about the area’s future.

“I see a bright side,” said John P. Metcalf, a senior partner with the Corporation for a Skilled Workforce. “One of the things you have going for you in the Triad that Charlotte and the Triangle don’t is that you have a clean sheet of paper to work with. ... (But) somebody has got to put something on it.”

That’s happening, local leaders say, pointing to the area’s drive to become a major logistics center.

“In the next 10 years, we’ll be nowhere near the bottom in terms of employment creation,” Debbage said. “We’re going to get around this eventually.”

 

Contact Donald W. Patterson at 373-7027 or don.patterson@news-record.com

 

Accompanying Photos

File photo (News & Record)

Photo Caption: Local residents at a job fair.

Comments

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rmacz

June 19, 2011 - 10:31 am EDT

This story long over due. The bright side is that someone's addressing these issues.

I might add to one of the solutions instead of a clean sheet of paper, get out and vote conservatives in office.

timflowers

June 19, 2011 - 1:30 pm EDT

The last thing we need are more conservatives in office. Conservatives want to hold back, slow down, and say no. By it's very definition, conservative means "disposed to preserve existing conditions, institutions, etc., or to restore traditional ones, and to limit change." Being too conservative is exactly what is wrong with Guilford County now. We've moved too slow, resisted change, and said "no" to too many possibilities while neighboring areas embraced change. Now we're sitting here at the bottom trying to find a way out.

We have to create a vision for our future and move forward. Falling back on the failed methods of the past will only bring us more hardship.

rmacz

June 19, 2011 - 3:16 pm EDT

You mean like Greece....ha!

rooster8786

June 19, 2011 - 3:44 pm EDT

TIMFLOWERS - How about the "to restore traditional ones" part?

Panacea

June 19, 2011 - 9:00 pm EDT

Traditional does not always mean best. Change is part of life.

SAGG

June 19, 2011 - 4:09 pm EDT

Here, here, Timflowers! Right on!

countryboy

June 19, 2011 - 5:52 pm EDT

Not sure where you've been Timmy....but Guilford County is the most liberal county in the state. Liberal/Conservative is not the issue however. The issue is the fact that Guilford County politics are completely disfunctional. The inmates are running the asylum....and they continue to get re-elected.

Theo

June 19, 2011 - 7:31 pm EDT

Flower Child, you make some bold statements! How about some facts to back your BS!

johnodrake

June 19, 2011 - 8:23 pm EDT

I certianly agree - the methods of the past have not worked. Time to get the liberal democrats out and get some leadership installed that will bring jobs, not welfare.

retiree

June 19, 2011 - 9:42 pm EDT

Tim, the Democrats talking points year is "lean forward." Guess you didn't get the tweet.

To correct you on the record, the Democrats have controlled this City and County for a long time, so not sure where you got your information about the Republicans having failed. In the state Legislature, it's been over 100 years since the Republicans have had control, so clearly any failed programs of the past have been at the hands of Democrats.

eberger

June 20, 2011 - 2:07 pm EDT

Perhaps if the term "conservative" is not a comfortable one, then "pro-business" might serve better. The political leadership in this county must recognize the fact that a healthy business environment will attract and foster new companies providing sustainable jobs in economically viable industries, as well as create the demand for service businesses to those companies and their employees. The mills and factories that employed hundreds and thousands of workers are gone. As is the story throughout America, manufacturing output is as much as ever before. It's just become more efficient through technology. A three-pronged approach is needed: 1- More funds allocated to economic development as well as sustaining those companies already here by providing incentives. Greensboro has had great success, ranking in the top ten nationally for areas of similar size by attracting companies like Honda Jet. But retention is just as important. (American Express shifted 1,000 jobs from here to AZ and FL, chiefly because their leasing costs were too high.) Get everyone onboard with a unified effort, the GEDA, the Mayor’s office, county commissioners. (If not, vote ‘em out.) 2- Education and retraining. Support for further expansion of GTCC, and augmentation of its curricula aimed at providing training for workers of all ages. Create programs to engage college students, offering robust internships with area companies aimed at retaining them in the area after graduation. 3- Take a hard look at spending. Property taxes in Guilford County are more than 60% higher than in Raleigh, and more than 70% higher than Charlotte. Where is that money going? Does Guilford County really have extraordinary needs that require that much of a premium to live and work here? It all starts with a plan, and I have the sense that our current leadership doesn’t have one, and assumes the future will take care of itself. It will, but at the moment, it appears as if it will take root elsewhere.

rooster8786

June 19, 2011 - 10:31 am EDT

“The report is grim reading,” said Keith Debbage, a professor of urban geography at UNCG. “I can’t believe we are at the bottom. That is shocking.”
OBVIOUSLY you haven't seen the "leaders" we've unfortunately elected. Have you seen a meeting of the commissioners or city council on public access? Industry developers obviously have and took their jobs elsewhere...

Abner Doon

June 19, 2011 - 10:58 am EDT

What does a community with many believe to be corrupt business and government leadership supply its community? "Guilford lost more jobs between 2005 and 2010 than any other county in the state — nearly 11,000."

http://triadwatch.blogspot.com/2011/06/what-does-community-with-many-bel...

EllieP

June 19, 2011 - 1:11 pm EDT

Foreseeable, preventable and very, very sad.

Time for all Guilford county residents to examine our hearts, pull together with our neighbors and rebuild our community. We simply cannot afford to make the same mistakes we have made in our recent past. No more excuses.

timflowers

June 19, 2011 - 1:21 pm EDT

Not sure it was preventable, considering the speed at which the decline in manufacturing happened, but your advice is welcome and appropriate nonetheless.

timflowers

June 19, 2011 - 1:39 pm EDT

Our focus on logistics is wise. That's one industry that can't really be off-shored, so moving forward we'll be on much more solid ground than our neighboring cities.

Economists are now predicting that virtually any job that can be done sitting in front of a computer screen, including banking, many medical jobs such as radiology, and even management positions, will soon be going overseas to India and various countries in Asia. As this happens, job growth in Raleigh and Charlotte will likely stall or move into reverse. By then Greensboro will be building on its foundation of logistics.

But it will take all of us thinking boldly and creating a vision for our future to crawl out of this deep hole. This is no time for petty politics or the same sort of conservative thinking that helped us fall so far behind over the past decade. Change or die. It's time to change and rebuild.

rmacz

June 19, 2011 - 3:20 pm EDT

Sounds like this guy is really stuck on "Hope and Change". Ever heard of Raganomics, works every single time it's tried.

Alf42

June 19, 2011 - 3:43 pm EDT

Yes indeed. Trickle down economics is a lot better than trickle up poverty. I'm not quite sure how some think liberal policies are going to pull us out of this. I think we've been trying that on a national level for the last 2 1/2 years. If you liberals have some specific proposals we're all ears.

SAGG

June 19, 2011 - 4:11 pm EDT

Sure. Raise taxes on the rich, and cut defense, for starters. We'll get to cutting programs later.

rmacz

June 19, 2011 - 5:58 pm EDT

Then we get to ask the poor for a job....surrrrrrre.

retiree

June 19, 2011 - 9:49 pm EDT

Even if the taxes are raised on the "rich" (does that include you too?), that still wouldn't solve the problem of overspending. Congress would just have additional revenue to dole out to their political supporters just like they did with the stimulus money. The problem is not havign enough tax revenue, it's spending. Just like you and your credit card, you can get the limit raised, but if you don't stop spending you'll eventually go broke and then file for bankruptcy and no one will lend you money aftererwards. We already are spending .42 of every dollar of revenue received, so where does it end?

Theo

June 19, 2011 - 7:33 pm EDT

I agree...Hope and Change is not a plan!

osprey

June 19, 2011 - 10:49 pm EDT

Yeah, the Dems talk "Hope and Change," but what they brought is Mope and Strange

rooster8786

June 19, 2011 - 3:51 pm EDT

Focus on logistics? How about we focus on a career path that leads to something? How about a career path where we make something? How about a career path where we take pride in what we do or make and not just go thru the motions of working? How about a career path that challenges our mental acuity skills and is intellectually challenging? How about our "leaders" focus on local regionalism, instead of each community, for job creation & growth? How easy is it to live in G'boro and drive to Winston now?
Logistics is ANOTHER career path that takes little education to get in, can be made much more efficient thru technology & robotics, and in the future will go the way of textiles & furniture.

awsmview

June 19, 2011 - 3:20 pm EDT

The Big Picture. Guilford county is only ONE county in North Carolina.
This “structural shift.” in America is the splitting of the masses.
The middle class is disappearing.
The new America is being formed before your eyes.
Many in North Carolina are now finding themselves living at the door of the poorhouse.
You will either be Rich or Poor.

Alf42

June 19, 2011 - 3:55 pm EDT

In free market capitalism, there are winners and losers. Cities are no different. Some adapt and evolve and others get left behind. There are a lot of factors at play here and it's silly to place the blame solely on our current "conservative" city council. We surely have had our share of liberal policies in Guilford county over the years that have done nothing to foster prosperity and economic growth. At the same time, Charlotte and the Triangle have grown much more influential on a national level, for many reasons other than the politics of their city councils.

Andrew Brod

June 19, 2011 - 4:05 pm EDT

Guilford's job loss in 2005-2010 was terrible, but to characterize Guilford as the worst in the state is crazy and misleading. The only reasonable way to make comparisons like this is in percent terms. Guilford's percent job loss was, depending on which data you use (I can't replicate the data used in this story--and I know where to look!), 5.6%. That's terrible, and it's obviously much worse than the other big metro areas in the state, which gained jobs on balance. But each of the other job-losing counties in the chart in the N&R story had worse losses in percent terms: e.g. 17.5% in Burke, 16.4% in Caldwell.

I'm sure I could find a whole bunch of rural counties with worse figures than Guilford's. Let's try... Edgecombe, a rural county in eastern N.C. Its job loss between 2005 and 2010? 16.4%.

This story could have been written equally well if Guilford's performance had been put in the proper context. Things are bad here, but the worst in the state? Not even close. And maybe that's the saddest part of the story, i.e. that Guilford's situation isn't as bad as in rural N.C.

Andrew Brod

June 19, 2011 - 4:13 pm EDT

Another inaccurate characterization of this story is to blame this on the Great Recession. The data are much more about Guilford's adjustment to the long-term structural changes the entire economy is undergoing than how it's suffering from the Great Recession. What do I mean? Let's look at some more data:

Guilford's percent change in employment in 2005-08, 2008-10, and the overall period 2005-10 are: 2.5%, -8.4%, -6.2%. (This time I'm using federal data from the same source as the above; the numbers are similar but they don't quite agree, but these are easier to download for a series of years.) The corresponding figures for the average of Durham, Wake, and Mecklenburg counties are 9.8%, -5.6%, 3.6%. Guilford's sorry job performance in 2005-10 is much more about what happened before the Great Recession (2005-08) than what happened since (2008-10). The growth rate in 2005-08 in DWM counties was nearly quadruple the growth in Guilford (9.8% vs. 2.5%), while the rate of job losses in Guilford in 2008-10 was only one-and-a-half times bigger than in DWM counties (8.4% vs. 5.6%).

To be fair, the story discusses these long-run factors, but they only show up after the jump. The lede sentence says these numbers are about the Great Recession, and that's just not right.

Andrew Brod

June 19, 2011 - 4:26 pm EDT

Another point: One has to be very careful about using employment data at the county level. The data cited in this N&R story were generated by what's called an establishment survey, a survey of businesses asking them about their payrolls. In other words, these data are about the number of jobs in a county, regardless of where the workers live.

In contrast, there's the household survey, from which we get our data on unemployment rates. Those data can tell us how many jobs are held by the residents of a county, regardless of where they commute to work.

When you compare metro counties, using the establishment survey is close to apples-to-apples (and again, Guilford obviously looks quite bad in comparison to the likes of Wake and Mecklenburg). But it's dicey when you use it to compare urban and rural counties. For example, consider our near neighbor Caswell. According to the establishment survey, employment in Caswell actually rose between 2005 and 2010. The increase was only 0.2%, but that's better than Guilford, right?

Not so fast. The the establishment survey listed only 3,081 (non-farm) jobs in Caswell in 2010. The household survey listed 9,352, or triple that amount. The implication is that on net, 2/3 of Caswell's employed (non-farm) residents commuted outside the county for work. And because 9,840 of the county's residents were employed in 2005, the number of jobs held by residents fell 5% between 2005 and 2010.

Therefore, the jobs picture in rural N.C. is, if anything, worse than the data in this N&R story can show. That doesn't make Guilford's situation any better, but it's important to have the right context.

Andrew Brod

June 19, 2011 - 4:40 pm EDT

"Therefore, the jobs picture in rural N.C. is, if anything, worse than the data in this N&R story can show."

Sorry--that's an overstatement. I should have said that the rural jobs picture MAY be worse than these establishment-survey data can show.

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