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The Socio-Economic Impact of Job Loss in Robeson County, North Carolina Preliminary Findings

This study examines the socio-economic impact of job loss in Robeson County, NC, focusing on the decline of manufacturing jobs and its ripple effect on the regional economy. It highlights the significant loss of jobs, reduction in regional employment and household income, and increased unemployment insurance payments. The study also discusses the impact on poverty rates, personal bankruptcies, and the educational attainment of displaced workers.

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The Socio-Economic Impact of Job Loss in Robeson County, North Carolina Preliminary Findings

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  1. The Socio-Economic Impact of Job Loss in Robeson County, North Carolina Preliminary Findings Leslie Hossfeld, PhD. Department of Sociology, UNC-Pembroke

  2. Robeson County, NCPopulation 123,339

  3. Ten-Year Change in Robeson County Manufacturing 1993-2003 • In 1993 manufacturing accounted for 31% of all jobs in the county • Ten years later, manufacturing accounts for only 18% of jobs in the county. • Nearly 9000 jobs lost since 1993 • Peak years of plant closings 1998-2003 Source: NC Employment Security Commission

  4. Manufacturing work declined significantly from 17,430 in 1993 to 6,832 in 2003. Number of Manufacturing Employees and Manufacturing Payroll - Robeson County 1993-2003Source: County Business Patterns 1994-2003

  5. Economic Impact of Manufacturing Job Loss Ripple Effect of Job Loss Regional Economic Impact (region defined as adjacent commuting counties) Total Cumulative Loss as of 2004 $4.8 billion Loss of 8,708 manufacturing jobs in Robeson County resulted in: • Total reduction in regional employment of 19,922 jobs from 1993-2004 • By 2004, regional household income had been reduced by $808 million • By 2004 regional governments were collecting $39 million less in indirect business taxes; total cumulative 12 year impact: $220,669,985

  6. What happens when work disappears? • Job loss affects not only the immediate worker who loses their job, but other workers in the community.

  7. Ripple effect on other industries due to manufacturing job loss

  8. Unemployment Insurance payments increased from $8.4 million in 1994 to $20.8 million in 2001 From 1998 to 2001 Unemployment Insurance payments more than doubled By June 2003 NC had a negative UIF balance Unemployment InsurancePayments Robeson CountySource: US Bureau of Economic Analysis 1993-2001

  9. Income “Poverty means you can’t do basic goals like taking care of your family and yourself”

  10. State Mean Household Income = $51,225 • 37% of Robeson County households in 2000 had incomes below $20,000 a year • Over half (52%) earned incomes below $30,000 • 24% of households live in poverty Source: US Census 2000

  11. Personal bankruptcies in Eastern NC nearly tripled from 1994 to 2002 Personal Bankruptcies Source: US Eastern North Carolina District Court 1994-2002

  12. Bankruptcies Filed in Robeson County 1999-2002 Source: US Eastern North Carolina District Court

  13. Education and Work • Many workers in Robeson County left school early to work in local manufacturing • 31% of adults 25 and older in Robeson County do not have a high school diploma. • Displaced workers face the dilemma of having little educational attainment when work today is increasingly knowledge-based Robeson County Educational Attainment Source: US Census 2000

  14. Older workers are disadvantaged • Rural displaced workers are generally older workers with less education • Previous research on displaced workers indicates that older workers endure greater hardships with longer periods of unemployment than younger workers Source: US Census 2000

  15. Contact Information: Leslie Hossfeld, Ph.D. Department of Sociology BA 223 University of North Carolina at Pembroke hossfeld@uncp.edu • Center for Community Action Mac Legerton PO Box 723 Lumberton, NC 28359 cca@carolina.net

  16. NATIONAL CONFERENCE ON JOB LOSS AND RECOVERY IN RURAL AMERICA The Center for Community Action Jobs for the Future Collaborative NATIONAL CONFERENCE ON JOB LOSS & RECOVERY IN RURAL AMERICA Southeastern North Carolina Agricultural Center and Farmer’s Market Hwy 74 East Lumberton, NC October 1 - 2, 2004

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