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North Carolina in the Global Economy

North Carolina in the Global Economy. North Carolina in the World Economy I: Job Losses From Imports. 1994--2002: 87,000 Manufacturing Jobs Disappeared in North Carolina. Sectors Most Heavily Hit: Low-Skill Manufacturing Industries (Apparel, Basic Assembly Operations in Furniture Industry).

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North Carolina in the Global Economy

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  1. North Carolina in the Global Economy

  2. North Carolina in the World Economy I: Job Losses From Imports • 1994--2002: 87,000 Manufacturing Jobs Disappeared in North Carolina. • Sectors Most Heavily Hit: Low-Skill Manufacturing Industries (Apparel, Basic Assembly Operations in Furniture Industry). • Textiles? About 23,000 Job Losses in North and South Carolina in 2001.

  3. North Carolina in the World Economy II: Job Creation and Exports • Exports from North Carolina to the World: • Increased by 87.7% Between 1993 and 2000 • The 18th Largest increase Among All States • Export-Related Jobs in North Carolina: • 132,900 Manufacturing Jobs Depend Upon Exports (17.2% of All Manufacturing Jobs) • 285,600 Manufacturing Jobs in All Sectors Depend Upon Exports • Another 152,700 Jobs Indirectly Supported by Exports (e.g., transportation, business services, wholesale and retail trade, other non-manufacturing activities) • Total: 438,300 Jobs Supported by Exports. Source: Job data from U.S. International Trade Administration. 2001. U.S. Jobs From Exports: A 1997 Benchmark Study of Employment Generated by Exports of Manufactured Goods. Export Growth from http://www.ita.doc.gov/.

  4. Source: International Trade Administration

  5. Source: International Trade Administration

  6. Source: International Trade Administration

  7. Source: International Trade Administration

  8. Export Jobs Pay Better Than Import-Competing Jobs • On average, jobs in export sectors offer 13% to 20% higher wages than jobs in import-competing sectors.

  9. Not Job Destruction • The Story of Trade is Not One of Job Destruction • Some Jobs are Destroyed • Other Jobs are Created • Story of Trade is One of Changes in the Kinds of Jobs Available in the Local Economy • In the United States (and North Carolina), this Change is: • The Elimination of Low-Skill (and Low Wage) Jobs • The Creation of High-Skill (and High Wage) Jobs

  10. Total Jobs: 157,471 Source: NC Employment Security Commission

  11. Total Jobs: 185,487 Source: NC Employment Security Commission

  12. Wages in the Declining and Growing Industries? • Average Annual Wage in Declining Industries in District 8: • Apparel: $20,300 • Textiles: $25,300 • Average Annual Wage in Growing Industries in District 8 • Industrial Machinery Industries: $32,500 • Transportation Equipment: $35,000 • Services: $22,879

  13. Trade Adjustment in North Carolina, 1986-1992 Alfred J. Field and Edward M. Graham 1997. “Is There a Special Case for Import Protection for the Textile and Apparel Sectors Based on Labour Adjustment?” The World Economy 20 (March): 137-57.

  14. In All of Manufacturing, 1990s • Fate of all NC Manufacturing workers who lost their jobs during 1990s (regardless of reason) • 75 percent found new jobs paying 80 to 100 percent of old wage within one year. • Patterns in Rapid Re-employment: • Gender: No Pattern • Race: No Pattern • Age: Workers 55 or older had a harder time finding new jobs than younger workers • Education: Workers with High School or Less Education had lower re-employment rates than workers with more education. Source: NC Employment Security Commission, Mass Layoffs in the North Carolina Economy.

  15. North Carolina and NAFTA Source: U.S. International Trade Administration Website http://www.ita.doc.gov/

  16. Labor Compensation: MNCs vs. Local Firms(thousands of US dollars)

  17. Labor Compensation By MNCs(thousands of US dollars)

  18. Mexico In Perspective Source: World Bank, World Development Indicators on CD-ROM, 2001

  19. Mexico’s Trade Source: World Bank, World Development Indicators on CD-ROM, 2001

  20. Rising Incomes Source: World Bank, World Development Indicators on CD-ROM, 2001

  21. U.S. Accounts For: 80% of Mexico’s Exports 74% of Mexico’s Imports Source: U.S. International Trade Administration Website http://www.ita.doc.gov/

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