Labor Climate
Durham's workforce has increased by more than 21 percent since 1990 and boasts the highest average wage in the state. A highly educated labor pool and annual unemployment rates between 2.0 and 4.0 percent over the past decade indicate a strong business environment for both employers and employees.
Right to Work State
North Carolina is a "right-to-work" state. "Closed shop" union agreements are not permitted. An employer may not require an employee to join a union, nor may an employer require an employee to refrain from joining a union. The unionization rate for North Carolina workers is the lowest in the nation at 3.6%. This climate has created an environment where manufacturing, especially in the high-technology industries, has seen expansion while the nation as a whole has seen manufacturing slip in importance. Despite Durham County's relatively high wage structure, (due in large measure to the high concentration of academic and scientific employment) the average manufacturing production worker wage of $14.08/hr for the Raleigh-Durham-Chapel Hill metropolitan area is lower than the national average.
Workers' Comp
North Carolina workers compensation legislation and insurance rates are generally more fiscally responsible and cost employers less money than in other states, according to the National Council on Compensation Insurance. For 1998, the average workers' comp cost to employers was $3.05, placing North Carolina among the twenty lowest in the nation. Workers compensation legislation in North Carolina includes the following provisions that contribute to substantial labor cost savings for employers:
- Self-insurance is permitted
- Insurance rates are lower than the standard industry rates permitted for firms that qualify
- Clear-cut accident on the job is a condition for benefit compensation
- Free accident-prevention workshops designed for each product manufactured are offered
Unemployment Insurance (UI)
North Carolina also has the lowest standard unemployment insurance in the country and is among the top ten in lowest average UI cost. The average annual cost of unemployment insurance for the state was $85.29 per worker in 2000. Under the state's experience rating system, reductions of the standard tax rate are permitted as an incentive to employers to provide a safe work environment. An employer's experience rating is based upon the relationship between contributions credited to an employer's account and the benefits charged against that account.
For more information on UI rates, please contact the NC Employment Security Commission's local office at (919) 560-6880.
| North Carolina UI Tax Structure | |
| 2008 Taxable Wage Base | $18,600 |
| Standard Tax Rate for New Companies | 1.2% |
| Experience Rated Tax Rate for Established Firm | |
| Minimum Rate | 0.0% |
| Maximum Rate | 6.84% |
