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Salisbury -Rowan Community Action Agency, Inc. (A) Explain why the problem exists. UnemploymentfUnderemployment According to the North Carolina, Assessment of the state's labor force demand and supply for -2007- 2017, eight trends impacting the labor force were identified as followed: • Many of North Carolina's traditional manufacturing industries continue to shed jobs as part of an on-going economic transition • North Carolina's traditional "middle jobs" — those that paid a family -sustaining wage and required minimal formal education or training — are disappearing as part of this transition. • New job creation is concentrating in certain fast-growing metropolitan areas • Many areas of North Carolina are not prospering from the economic transformation • The future prosperity of all North Carolinians depends on achieving higher educational attainment Levels for all citizens • Impending baby -boom retirements will exacerbate an emerging skills gap among experienced, skilled workers • High -skill in -migrants presents both oppodunities and challenges in meeting the state's workforce needs. These trends are evident in both Rowan and Cabarms Counties. According to the Centralina Workforce Development Board's labor market overview. Cabarrus County's unemployment rate is 3.70%, slightly lower than the slate's unemployment rate; however, Rowan County's unemployment rate is 4.1%, which is higher than the state's unemployment rate of 4.0 %. Rowan County's job market has been one of the hardest hit in North Carolina. This is a direct result of the closing of several area manufacturing plants. According to the Rowan County Free Press (March 22, 2016 edition) "Rowan County's impoverished economy moves closer and closer to being taken off life support". This comment was made following the news of the closing of Tuscarora Yams, an area mill that had been operating in the county for 30 years. The closing resulted in 123 millworkers losing theirjobs. According to the October 2017, North Carolina Labor Market Conditions report, the top three (3) industries to add jobs since October 2016 were Professional and Business Services which added 31,700; 5.2% jobs, which was the largest number of jobs added in North Carolina. Education and Health Services added 18,100; 3.1%ofjobs and Trade, Transportation and Health Services followed with 10,300;1.3% of jobs added. The Manufacturing industry reported adding only 1,400; 0.3%ofjobs, while mining and logging and construction reported the largest over the year decrease in jobs. Although there is some expected job growth reported for both Rowan and Cabarms Counties. It is imperative that the growth be consistent over an extended period of time in order to make an impact on the unemployment rates for both service areas, and that the skill levels required for these positions be comparable to those possessed by those in need of employment. Otherwise, there may be little to no effect on the overall unemployment rate. EducationfVocatlon The 2016 Employer Needs Survey conducted by the North Carolina Department of Commerce reported that many of the past hiring difficulties still exist for employers in the Manufacturing, Construction, Healthcare, and STEM industries with 61%of employers reporting that education, Fiscal Year 2018-19 Community Services Block Grant Application Page 18 of 37 Attachment number 2 \n F-6 Page 106