The document analyzes key economic indicators for North Carolina's industry structure and labor market from 2012-2013. It shows that North Carolina has a larger share of employment in construction, manufacturing, and education/health compared to the U.S. overall. Unemployment declined slightly in North Carolina but remained higher than the national rate, while wages and personal income growth lagged behind the U.S. Housing starts and prices increased from 2012 to 2013 but remained below pre-recession levels.

1. North Carolina Industry Structure
2012
Natural Resources & Mining
U.S.
0.6
0.1
North Carolina
4.2
4.3
Construction
8.9
Manufacturing
11.0
19.1
18.7
Trade, Transportation & Utilities
2.0
1.7
Information
5.8
Financial Activities
5.1
13.4
13.4
Professional & Business Services
15.2
Education & Health Services
13.8
Leisure & Hospitality
4.1
3.6
Other Services
10.3
10.4
16.4
Government
17.9
0.0
2.0
4.0
6.0
8.0 10.0 12.0 14.0
Employment Share (Percent)
16.0
18.0
20.0
Source: Bureau of Labor Statistics/Haver Analytics
6

2. North Carolina Industry Growth
Percent Change in Employment from a Year Ago, NSA
August 2013
U.S.
1.7
1.7
Total
Natural Resources & Mining
Construction
3.0
-1.8
2.8
-2.0
0.1
Manufacturing
0.8
2.0
2.4
Trade, Transportation & Utilities
-0.3
Information
6.9
1.4
Financial Activities
3.4
3.4
3.8
Professional & Business Services
1.9
Education & Health Services
1.4
3.0
Leisure & Hospitality
4.4
0.8
Other Services
Government
-4.0
North Carolina
-0.6
-0.4
-1.2
-2.0
0.0
2.0
Percent
4.0
6.0
Source: Bureau of Labor Statistics/Haver Analytics
8.0
13

3. North Carolina Payroll Employment
5.0
4.0
3.0
2.0
YoY % Chg
1.0
0.0
-1.0
-2.0
-3.0
U.S.
-4.0
-5.0
-6.0
-7.0
2003
North Carolina
August 2013
US: 1.6%
NC: 1.7%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Bureau of Labor Statistics/Haver Analytics
20

4. North Carolina Unemployment Rate
12.0
11.0
10.0
U.S.
North Carolina
9.0
8.0
Percent
7.0
6.0
5.0
August 2013
US: 7.3%
NC: 8.7%
4.0
3.0
2.0
1.0
0.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Bureau of Labor Statistics/Haver Analytics
27

5. North Carolina Initial Unemployment Claims
150,000
130,000
110,000
90,000
70,000
50,000
30,000
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Bureau of Labor Statistics/Haver Analytics
34

6. North Carolina Real Personal Income
6.0
U.S.
5.0
North Carolina
4.0
3.0
YoY % Chg
2.0
1.0
0.0
2Q: 2013
US: 1.6%
NC: 0.9%
-1.0
-2.0
-3.0
-4.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Bureau of Economic Analysis/Haver Analytics
48

7. North Carolina Wages and Salaries
10.0
U.S.
North Carolina
8.0
6.0
YoY % Chg
4.0
2.0
0.0
2Q: 2013
US: 3.2%
NC: 3.8%
-2.0
-4.0
-6.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Bureau of Economic Analysis/Haver Analytics
55

8. North Carolina Building Permits
Single-Family Homes
60.0
U.S.
North Carolina
YoY % Chg
3-month moving average
40.0
20.0
0.0
-20.0
August 2013
US: 20.3%
NC: 18.1%
-40.0
-60.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: US Census Bureau/Haver Analytics
62

9. North Carolina House Price Index—FHFA
15.0
12.0
2Q: 2013
US: 4.0%
NC: 1.7%
9.0
YoY % Chg
6.0
3.0
0.0
U.S.
-3.0
North Carolina
-6.0
-9.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Federal Housing Finance Agency/Haver Analytics
69

10. North Carolina Housing Starts
140
2500
120
2000
1500
80
60
1000
SAAR, thousands
SAAR, thousands
100
40
500
20
0
2003
2004
2005 2006 2007 2008
North Carolina (Left Axis)
2009 2010 2011 2012 2013
United States (Right Axis)
0
2014
Source: Bank of Tokyo-Mitsubishi UFJ/Haver Analytics
75

11. North Carolina Mortgage Delinquency Rate
90+ days delinquent
14.0
12.0
2Q 2013
Subprime: 8.8%
Total: 2.5%
Prime: 1.1%
Percent
10.0
Subprime Mortgages
8.0
Total Mortgages
Prime Mortgages
6.0
4.0
2.0
0.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Mortgage Bankers Association/Haver Analytics
82

12. North Carolina Foreclosure Inventory Rate
12.0
10.0
2Q 2013
Subprime: 7.5%
Total: 2.1%
Prime: 1.2%
Percent
8.0
Subprime Mortgages
Total Mortgages
Prime Mortgages
6.0
4.0
2.0
0.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Mortgage Bankers Association/Haver Analytics
89

13. North Carolina Foreclosure Starts Rate
4.0
3.5
Subprime Mortgages
Total Mortgages
Prime Mortgages
3.0
2Q 2013
Subprime: 1.9%
Total: 0.5%
Prime: 0.3%
Percent
2.5
2.0
1.5
1.0
0.5
0.0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Mortgage Bankers Association/Haver Analytics
96