NC loses 7,200 manufacturing jobs in 2025, says NC Commerce

North Carolina’s manufacturing sector reported one of the largest yearly job losses of any major industry. Unemployment rates have declined across North Carolina, while overall employment increased in other sectors, according to new data from the North Carolina Department of Commerce. 

The manufacturing job market fell by 7,200 jobs over the past year, which is a 1.6% decrease. The only other job sector to report losses was the information category, down 700 jobs. However, several other industries, like construction, health, private education and hospitality recorded job gains during that same period. This points to continued growth in other parts of the state’s economy. 

John Locke Foundation’s senior vice president of research, Brian Balfour stated that the reports we are seeing of manufacturing job losses are unique, being that every other sector has reported growth. He stated in reference to the administrations tariffs, “As long as these tariffs are taking place, net impact will be negative in the manufacturing job sector.” 

Manufacturing job losses come as North Carolina’s labor field remains thin, with unemployment rates decreasing in 99 counties, as of December 2025. According to the Commerce Department’s latest release, the statewide unemployment rate stands at 3.4%. Edgecombe County had the highest unemployment rate at 5.4%. However, Stanly County had 2.6% being the lowest. All 15 metro areas saw decreasing rates monthly. This includes Rocky Mount recording the highest rate at 4.8% while Raleigh having the lowest of 3.0%. Unemployment rates too far under 5% — considered full employment, a good balance between unattached workers and businesses seeking workers — can create labor shortages.

Statewide employment numbers have moved in positive directions with the number of workers employed increasing. The number increased by 36,570 in December to more than 5.1 million, while the number of unemployed workers fell at around 39,160. Compared to December 2024, employment rose by just over 41,000 workers, while the number of unemployed increased slightly over the year. 

NC Department of Commerce officials noted that employment data can change due to seasonal patterns and revisions, making the yearly changes more of an indicator of trends long term. The decline of manufacturing jobs stands out because of it being only one of two job sectors to report annual losses. 

On the state level, numbers reflect conditions through December 2025 and show North Carolina’s economy before the start of the new year. Employment data nationwide released this week shows a broader representation of overall job growth and increasing wages across the nation. 

Analysts with the North Carolina Department of Commerce’s Labor & Economic Analysis Division also say that job market changes can reflect multiple factors. These being consumer demand, investment season, interests rates, and economic uncertainty. North Carolina’s economy over the past decade has changed with growth in technology, health care, service industries which can outpace the manufacturing space. 

Manufacturing remains a major part of North Carolina’s economic foundation, especially in rural communities. Declines in the sector can have a negative impact in areas where factories and facilities provide a significant portion of jobs. 

“NC loses 7,200 manufacturing jobs in 2025, says NC Commerce” was originally published on www.carolinajournal.com.