What’s the Fastest Growing Industry Sector in NC between 1990 and 2020?

A recently published article reviewed employment growth in North Carolina between 1990 and 2020 using data from the Quarterly Census of Employment and Wages (QCEW) accessible via D4.nccommerce.com.  This analysis showed that statewide annual average employment increased 40% over the 30-year period.  Also, several industry sectors showed significant growth while others decreased.

NC Employment Growth by Industry Sector, 1990 to 2020

The industry sector (2-digit NACIS) with the largest percentage increase in employment over the 1990-2020 period is Professional, Scientific and Technical Services.  In this sector, employment grew 212% during this 30-year period adding more than 184,000 jobs.  Digging a little deeper into this industry sector using four- and six-digit NAICS level data can pinpoint where the growth occurred.   

Nine industry groups comprise the 4-digit NAICS level.  All industry groups included in the Professional, Scientific and Technical Services sector increased employment from 1990 to 2020, but most of the job growth came from the top four: Computer Systems Design & Related Services; Management, Scientific & Technical Consulting Services; Architectural, Engineering, & Related Services; and Scientific Research & Development Services. These accounted for nearly three out of every four jobs gained in the sector, totaling over 138,000 jobs – see table below for details.  

Employment Growth in Professional, Scientific & Technical Services by 4-digit NAICS Industry (NC) 

Employment data at the 6-digit NAICS industry level is the most detailed information available and may help reveal additional insights that were not recognized at the 2- and 4-digit levels.  Due to suppression to protect the confidentiality of company-specific information, some data at the 6-digit level may be unavailable for analysis.  

At the 6-digit level, the top three industries by employment growth are part of the four largest industry groups as showed above. The fourth and fifth largest industries were Veterinary Services and Offices of Lawyers; combined, these five growth industries were responsible for adding 87,500 jobs over the 1990-2020 period. 

Note that, due a change in the NAICS classification, we do not have enough information to determine employment growth in three significant industries, Research and Development in Biotechnology; Research and Development in Physical, Engineering, and Life Sciences; and Computer Systems Design Services. Each of these industries had employment size greater than 12,000 in 2020 and are large components of 4-digit industry groups that experienced over 300% growth over the past 30 years.

Employment Growth in Professional, Scientific & Technical Services by 6-digit NAICS Industry (NC)

Additional observations of the 6-digit industry level data in the Professional, Scientific and Technical Services Sector:

• The Translation and Interpretation Services industry showed the highest growth rate, an increase of more than 3000%.  Employment in 2020 was 1,164.
• The second highest growth rate, more than 1700%, was in Building Inspection Services.  Average annual employment in 2020 was 688.
• Not all industries added employment. Direct Mail Advertising; Photography Studios, Portrait;   Drafting Services; Geophysical Surveying and Mapping Services; and Commercial Photography lost more than 2,800 jobs combined.

This is the first of several articles and social media posts to analyze recently updated QCEW data to help understand how the state’s economy has changed from 1990 to 2020.  Look for more in the coming months.