Raleigh was ranked at the top in terms of providing jobs in the previous year of 2020. Glassdoor saw some commendable improvements in the economy of Raleigh due to the expansion and installment of new business ventures and companies.
One of the leading examples was Bandwidth; a company constructing a 300,000 square foot headquarters in the southwest location of Raleigh. This would contribute 1,165 jobs to the economy, with an average salary of each employee of $96,832. This project may generate $100 million in further capital investment.
Envestment, a financial service company, signed three floors in a downtown Raleigh office tower to grow its business operations.
The unemployment rate of Raleigh is 3.7% compared to 4% of the USA. The job market of Raleigh grows at an average rate of 3%. The job growth rate in the future ten years is projected to increase by 44.2%, which is very high compared to 33.5% of the entire country. The average salary of a Raleigh resident is $31,169 a year. The average salary in the USA is $28,555 a year.
Several new eating ventures have introduced a shift to commercial development given its unemployment rate. The city of Raleigh was facing crises from the pandemic and justice outbreaks. However, these crises provided a renewed zest to the growing economy with its twelve business alliances. It also provided economic development throughout the city. A considerable number of participants also attended the technical webinars offered by the local business chamber to guide them in their business ventures aimed at contributing to the national economy. Over $500 million have been invested in the commercial construction of the city. Midtown exchange and a new department of health and human services will provide almost 4000 jobs to the public sector employees.
Raleigh Industries and Economic Areas
The most essential economic strong points of Raleigh are as follows:
- Health and Service Department
- Financial Services
- Education and School
- Residential Real Estate
- Commercial Real Estate
- Business Services
- Leisure and Entertainment Industry
The residential sector, in particular, will grow with the helpful factors of low-interest rate and low virus transference mid-pandemic. As more people continue to work remotely, they evaluate their residual place to better accommodate the present situation. A trend shifting to suburban distanced areas has been recognized. 7.5% more homes were sold in 2020 than its preceding year. A house that stays on the market for an average of 28 stays at the average sale price of $292,259.
When it comes to the commercial sector, retail and office sectors experienced a limited halt due to the pandemic. Industrial and life sciences experienced no such pause in their operations. Companies took a more conservative approach towards employment growth. Most companies asked their employees to work from while some managed to stay in-office by offering more space to each employee. Some downsized their operations and limited their corporate footprint because of the decreased demand. However, based on the inquiries and interested investors, Raleigh will flourish in real estate in no time.
Managing an Economy during Pandemic
- The local government of Raleigh must prioritize resuming growth. This can be achieved by lowering taxes and reducing spending to stabilize its economy. This will also help stabilize its debt to GDP ratio. The local government must promote public investments mainly in the research field. This will help the economy grow in the related sectors as well.
- Pandemic is a time of uncertainty. Confidence must be restored by a clear strategy led by experienced leaders. The correlation between the reaction of the people and the process must be heavily considered before publicly introducing it. Google data regarding spending patterns is a key indicator when it comes to picking the safest option for investments.
- The uncertainty must be minimized as much as possible. There is no alternative to health and a stable economy. Economies that have a reduced virus transference rate can avoid the evident slump in their economic lifecycle.
- The year 2021 is a beacon of hope. Policymakers must intend to stimulate aggregate demand to promote public and private spending to boost the economy. Tax cuts or zero-tax schemes may be introduced. The recovery from the second wave of the pandemic will be W-shaped. The online retailers and technology sector will boom. In contrast, conventional businesses and operations will likely take a long time to recover from the effects of the pandemic.
Raleigh Economic Growth Trends Forecast
The Raleigh economy entered 2020 with huge expectations. The annual growth was on track with the comparatively low rate of interest. The economy was growing, and the laborers at the very beginning of supply were being paid greater wages than other state economies.
The most apparent restraint to the economy was COVID-19. The virus quickly spread throughout Raleigh with its deadly potential. The decision to restrict person-to-person contact was made globally, and the same was imposed in Raleigh. This was done to curb the growing virus, to prevent further infections, and to not burden the hospitals and health system. Stay-at-home orders were strictly practiced, and shutdowns halted any economic activity. The unemployment rate surged to an alarming 11%.
There is always light at the end of the tunnel. Unemployment has been reducing since May of last year. The third quarter was beneficial for the local economy as the aggregate national demand left a gap of 4%. Finance, professional, and information businesses are back to their full potential. They achieved the same unemployment rate as of February last year. Jobs in the personal service providing sector are facing an unemployment rate of 6% presently. The leisure sector has been hit the worst because of the pandemic. The unemployment rate in the leisure sector is an all-time high of 30% since the beginning of 2021.
2021 is expected to benefit the local economy. It is expected to grow at an annual rate of 4%. If this does come to fruition, the economy will jump to the pre-pandemic times by late this year or early 2022. The same cannot be said of the job market. The pandemic is causing sporadic shifts in the labor market. Other factors contributing to high unemployment are the shift from labor to technology and the usage of machines in numerous occupations. This also increases the training costs for the companies as employees need to be trained to manage and operate the newest machinery,
However, most of the development programs have not been affected by the pandemic in the regions of Raleigh. The pandemic has increased the reputation of this region. People move to Raleigh to get away from the high populous area where the virus is snowballing. Their moves are justified by moderate living costs, pleasant weather, a growing economy and professional advancements, and healthcare services.
Remote working is also hugely increasing in Raleigh. Recent research coined Raleigh as the highest-earning region from working remotely. If this trend continues to grow, it can lead to improving residential leaving and inviting commercial investments.
North Carolina Economic Growth Trends Forecast
The economy of North Carolina has continued to grow in the previous months. New jobs have been introduced in the state that has stabilized the unemployment rate. The housing market also indicates an upward trend.
The total employment count in North Carolina increased by 0.4% this year in the net calculations. 16,500 more jobs were injected into the growing economy. Jobs were not introduced in the financial sector as it already succumbed to the pandemic with a loss of 600 jobs. Health services gained 8,000 new jobs, and the construction industry was able to hire 3,200 employees, respectively.
On the year-end calculation, due to COVID-19, North Carolina lost 222,300 jobs. No jobs were lost in the financial services sector at this point. Most employees were let go in the leisure and entertainment industry at 100,000 jobs marked a historic decline at 19.2%. The unemployment rate in October last year was 6.2%. The residential sector increased 13.2% in North Carolina in late last year. New permits showcased a 36.1% increasing in housing demand. The housing calculations at the beginning show an 18.9% in November and an overall increase of 24.7% last year. The residential home value also appreciated by 0.4% late last year.
The breakdown of the labor market is as follows as of January 2021:
- The state, as well as the local unemployment rate, is 3.2% and 5.6% below its 2019 level.
- 705,000 state employees reside in the state. 10.8% are federal. The ratio of local employees is 28.3% to 60.8%, respectively. The local unemployment was highest in March at a figure of 455,900.
The vaccine for COVID-19 is eagerly expected this year. It will be distributed in Raleigh as per guidelines to heal the infected and allow the economy to recover. The operations regarding livelihood and personal standards are distributed and cohesively adjoined toward the new normal. There is no going back to the old ways. Lessons have been learned, yet the economy will grow, staying close to the core values. Transport will resume. Plans will fly, busses will be boarded, and cruise ships will sail in scenic oceanic locations. Restaurants will invite in customers with the aroma, and socializing openly will once again be the norm. The office will welcome its employees in a non-Zoom manner. The retail will open its doors to customers once again, so will the cinemas.
The past year has been a challenge to any economy, no doubt. It has introduced disruptive trends and changes that will be carried forward in the year 2021. The economy of Raleigh aims to introduce affordability and space through a more remote working environment. It also aims at introducing the latest technologies to its critical industries to improve the manufacturing process and teach new skills to the employees. Personal values and community betterment will be highlighted, so the economy grows as a one-cell organism.