Report Labor & Economy

Our Daily Bread

A generation of North Carolina workers has seen their wages stagnate, their benefits erode, and their economic security hollowed out — and it's the predictable result of policy choices that can be reversed.

Carolina Forward · July 2021

Key findings

For decades, North Carolina sold itself as a low-cost, low-wage destination for businesses seeking to cut labor costs. That strategy produced jobs — but not prosperity. Today, the state ranks near the bottom nationally in worker power, wage growth, and economic security for working families.

Key Findings

Wages have not kept pace with productivity. North Carolina workers today produce significantly more per hour than they did in 1980, but median wages have grown only modestly in inflation-adjusted terms. The gains have gone overwhelmingly to those at the top.

The minimum wage has lost ground. North Carolina’s minimum wage remains at the federal floor — $7.25 per hour — unchanged since 2009. In real terms, it is worth less than it was when first enacted. No full-time minimum-wage worker in North Carolina can afford a two-bedroom apartment.

Benefits have eroded. Employer-sponsored health coverage, retirement contributions, and paid leave have declined sharply over the past two decades, especially for workers without a four-year college degree.

Union density has collapsed. North Carolina has one of the lowest unionization rates in the country, which research consistently shows is associated with lower wages and worse working conditions for all workers — not just union members.

What North Carolina Should Do

  • Raise the state minimum wage and index it to inflation
  • Repeal the state’s preemption of local minimum wage and sick leave ordinances
  • Reform the state’s right-to-work law to restore worker organizing power
  • Expand access to paid family and medical leave
  • Strengthen enforcement of wage theft and workplace safety laws

Read the full report

Includes methodology, modeling assumptions, full charts, and policy appendix.

Download PDF (26 MB)