Guest Op-Ed: In 2025, North Carolina Bucked National Trends
This op-ed first appeared in TRC Nexus, the premier business executive newsletter, on December 29th, 2025. Click here to learn about TRC Nexus. Republished with permission.
In 2025, uncertainty defined the country’s business climate. From tariffs and interest rates to softening labor and housing markets, the year brought hesitation to many parts of the country. North Carolina was not immune to those pressures. But the state entered the year well-positioned to navigate them — and in several key areas, to buck national trends altogether.
From reclaiming its title as CNBC’s Top State for Business in 2025 to maintaining an unemployment rate below the national average for more than a year, North Carolina stood out as a destination for jobs, investment, and people. While moving trends slowed nationally, families and workers continued relocating here in search of opportunity. The nation clearly sees North Carolina as a better place to live, work, and raise a family.
North Carolina’s labor market is one of the clearest signs of this momentum. For 14 straight months, NC’s unemployment rate has been below the national average. Holding steady at 3.7 percent, North Carolina’s job market sustained our state’s status as a destination for opportunity even as surrounding states saw their labor markets soften.
In line with this trend, employers across the state reported sustained demand for workers, keeping wage growth solid in many parts of North Carolina. Some counties and metro areas even saw year-over-year gains that outpaced national averages, due in part to the competitiveness of our labor market and the economic success of regions like the Charlotte Metro, the Triangle, and the Triad.
These dynamics were key to North Carolina reclaiming its status as CNBC’s Top State for Business for the third time in four years. Thanks to a competitive tax code, a strong higher-education system and workforce pipeline, solid infrastructure, and more, this highly prized ranking once again recognized many of our state’s strengths.
With relocation trends turned upside down, one of the most striking changes over the last few years has been the collapse of families and workers moving from state to state. High housing costs, together with the one-two punch of persistently high interest rates and inflation, have left fewer Americans moving than at any point in modern history.
Yet again, North Carolina bucked the national trend. Earlier this month, Atlas Van Lines, one of the country’s largest interstate movers, released data showing that North Carolina was one of the top destination states in the country for new arrivals.
More than 60 percent of moves through North Carolina were inbound, showing that when workers and families need to relocate for new opportunities, our state remains a top choice.
It is no secret that this kind of rapid growth brings unique challenges, and 2025 was no exception. Housing demand tightened in our fast-growing metro areas. Transportation grids face capacity challenges. And employers often face struggles to scale their workforce enough to meet demands.
These figures show that North Carolina’s growth continues to be broad-based and durable, and distributed across multiple regions rather than focused on one area.
Why?
When new legislative majorities took office in Raleigh more than a decade ago, the General Assembly charted a new course emphasizing fiscal discipline, regulatory restraint, and long-term planning, an approach that has shaped the state’s economic trajectory.
In the years since, lawmakers have remained committed to balanced budgets, streamlined regulations, and commonsense policy making. And 2025 saw the trends these policies set in motion continue, even as other states struggled.
North Carolina is one of only a small group of states to hold a AAA credit rating from all three major bond rating agencies. Moody’s has described the state as “one of the strongest states according to nearly every measure,” citing low leverage, significant reserves, and an economic growth rate that continues to outperform much of the region.
Those fundamentals matter. Fiscal stability lowers borrowing costs, supports long-term infrastructure investment, and provides predictability for employers making multi-year decisions. While other states face budget volatility or mounting fiscal pressure, including chronically underfunded pension systems and infrastructure investments constrained by weaker credit ratings, North Carolina’s steady approach remains a critical advantage.
Fiscal stability alone, however, does not sustain growth. It must be paired with long-term planning in the areas that make growth possible, particularly infrastructure and energy.
Rapid growth in high-energy-demand industries, particularly data centers driven by the AI boom, is reshaping electricity planning nationwide. In regions where capacity has lagged demand, the result has been grid strain and rising costs for families and businesses.
In North Carolina, policymakers and utilities recognized earlier than most states that economic growth depends on energy systems built for future scale, not just today’s needs. That recognition has driven ongoing reassessment of long-term capacity, reliability, and access to affordable energy as demand projections surged.
Sustaining growth also depends on something no less essential: public confidence in safety and stability.
While economic performance defined much of the business climate in 2025, moments of tragedy and policy response also shaped statewide conversations about public safety and accountability. High-profile incidents prompted renewed debate and legislative action, including the passage of bipartisan measures such as Iryna’s Law, aimed at strengthening bail standards, cracking down on repeat violent offenders, and restoring public trust in the criminal justice system.
Throughout 2025, while national trends and indicators slowed and stalled, North Carolina remained resilient across the board. This was no accident. It reflects a years-long commitment, more than a decade in the making, between business leaders and policymakers, to hone our state’s competitive edge and make North Carolina the best state for all. As we look ahead to 2026 and beyond, North Carolina is still the place to be.
