NC's Unfinished Transformation

Although North Carolina has undergone a remarkable economic transformation over the past half century, the state's newfound prosperity has bypassed low-income working families. One-third of North Carolina's working families earn low incomes, meaning less than 200 percent of the federal poverty line (or roughly $37,000 a year for a four-person family).

This finding comes from a new report released by the NC Budget & Tax Center. The study assesses the conditions of North Carolina's low-income working families and explores the degree to which the state's workforce development system helps low-income working families succeed in the modern economy.

A key finding is that educational deficiencies hold back many of North Carolina's low-income working families. One-third of such families contain at least one-parent without a high school diploma or GED credential, and 55 percent have no parent with any type of post-secondary credential.

Fortunately, North Carolina has a strong workforce development system comprised of post-secondary education and training programs for adults, economic development policies and work support programs like subsidized childcare. North Carolina is especially lucky to have a highly successful community college system at the center of its workforce development system.

The full report puts forth a detailed policy agenda that shows how North Carolina's workforce development system can be strengthened to better serve the needs of low-income working families. Special attention is given to policies that can help low-income working families access and afford educational opportunities.

The report was sponsored by the Working Poor Families Project, a national project designed to help low-income working families succeed in the labor market. Other Southern states that have participated in this project include Florida, Texas, Arkansas and Kentucky. Mississippi also will be releasing a report in late 2006. Click here to see the reports from other Southern states.