North Carolina’s economy in mid-2025 is growing but not without challenges.
Overall Economic Health and Job Growth:
- The state’s GDP is projected to grow 2.7% in 2025. This marks five straight years of economic expansion since the pandemic.
- Unemployment was 3.7% in April, stable from previous months. The unadjusted rate was 3.4%. Both are below the national average.
- Job growth is strong. Forecasts project 72,400 new jobs in 2025, a 1.4% increase.
- Sectors with the highest projected job growth include Information (4.2%), Education and Health Services (2.2%), and Construction (2.2%).
- Still, economists are cautious. Fiscal policy, inflation risk, and tariffs could slow growth. General Fund revenue projections have already been revised downward.
Key Layoff Activity:
Semiconductor Manufacturing (Wolfspeed):
- Wolfspeed is cutting 73 jobs in Siler City by August 9.
- The layoffs are part of a larger global reduction. Wolfspeed plans to cut 20 to 25 percent of its workforce, or about 1,250 workers.
- It is closing its 150mm plant in Durham and facing weaker demand for EV chips.
- The company has not yet secured 750 million dollars in federal CHIPS Act funding, which depends on refinancing its debt.
Pharmaceutical and Biotech Sector:
- North Carolina’s strong biopharma industry is facing national headwinds.
- Thermo Fisher Scientific cut 150 jobs in Sanford and 60 in Rocky Mount in 2024.
- Biomea reduced its workforce by 35 percent globally to conserve cash.
- Other CRISPR-focused companies also announced layoffs.
- These changes reflect a global push to trim costs and refocus priorities.
Higher Education Restructuring:
- UNC-Chapel Hill is launching “ServiceFirst,” an administrative overhaul aimed at cutting costs.
- Staff fear layoffs or reduced hiring as positions go unfilled.
- UNC-CH has already cut 77 full-time roles due to grant funding reductions.
- NC State University has a hiring freeze.
- Duke University is offering voluntary buyouts and may cut up to 10 percent of its budget.
Other Economic Trends:
- Inflation remains a threat. Economists say there is a 60 percent chance it returns in 2025.
- Tariffs are raising costs for businesses and cutting into state tax revenues.
- These pressures may slow growth or lead to future budget cuts.
Sectoral Strength:
- Despite layoffs in semiconductors and biopharma, other sectors are expanding.
- Information, Education and Health Services, and Construction are expected to lead job growth.
- These industries are helping to offset cuts elsewhere.
In summary, North Carolina is growing but unevenly. The economy is adding jobs and expanding, but key employers are cutting staff. Federal funding issues, inflation risk, and trade policies are reshaping the landscape. North Carolina remains resilient, but not immune to larger economic shifts.
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