The SocioEconomic Impact of Job Loss in Robeson

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

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

Robeson County, NC Population 123, 339

Robeson County, NC Population 123, 339

Ten-Year Change in Robeson County Manufacturing 1993 -2003 In 1993 manufacturing accounted for 31%

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

► Number of Manufacturing Employees and Manufacturing Payroll - Robeson County 1993 -2003 Source:

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

Economic Impact of Manufacturing Job Loss Ripple Effect of Job Loss Regional Economic Impact

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: Ø Total reduction in regional employment of 19, 922 jobs from 1993 -2004 Ø By 2004, regional household income had been reduced by $808 million Ø By 2004 regional governments were collecting $39 million less

What happens when work disappears? ► Job loss affects not only the immediate worker

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

Ripple effect on other industries due to manufacturing job loss Sample of Trade Related

Ripple effect on other industries due to manufacturing job loss Sample of Trade Related Job Losses 1993 -2003 Lost Jobs Lost Income in Dollars Banking -148 -13, 680, 181 Eating & Drinking -637 -9, 245, 275 Wholesale Traders -495 -22, 567, 266 Motor Freight -475 -17, 466, 318 Gov Education -637 -20, 660, 867 Gov Non-Education -411 -16, 450, 228 -51 -2, 349, 769 -100 -4, 427, 898 US Postal Service Hospital

Unemployment Insurance payments increased from $8. 4 million in 1994 to $20. 8 million

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 Insurance Payments Robeson County Source: US Bureau of Economic Analysis 1993 -2001

Income “Poverty means you can’t do basic goals like taking care of your family

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

► State Mean Household Income = $51, 225 37% of Robeson County households in

► 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

►Personal bankruptcies in Eastern NC nearly tripled from 1994 to 2002 Personal Bankruptcies Source:

►Personal bankruptcies in Eastern NC nearly tripled from 1994 to 2002 Personal Bankruptcies Source: US Eastern North Carolina District Court 19942002

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

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

Education and Work Robeson County Educational Attainment Source: US Census 2000 Many workers in

Education and Work Robeson County Educational Attainment Source: US Census 2000 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 knowledgebased ►

Older workers are disadvantaged Rural displaced workers are generally older workers with less education

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

► Contact Information: Leslie Hossfeld, Ph. D. Department of Sociology BA 223 University of

► Contact Information: Leslie Hossfeld, Ph. D. Department of Sociology BA 223 University of North Carolina at Pembroke [email protected] edu ► Center for Community Action Mac Legerton PO Box 723 Lumberton, NC 28359 [email protected] net

NATIONAL CONFERENCE ON JOB LOSS AND RECOVERY IN RURAL AMERICA The Center for Community

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