John Silvia

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Presentation to Global Issues Forum
Employment Growth, Offshore Outsourcing and
Secular Change in the Charlotte Labor Market. Our
Challenge is Our Opportunity.
John Silvia Chief Economist September 21, 2004
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U.S. Outlook
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• Consumer Fundamentals
• Income
• Sentiment
• Credit
• Outlook Better

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• Investment Spending
• Orders
• Capacity Utilization
• Financial Depth
• Outlook - Improving

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• Housing
• Household Income
• Employment
• Credit
• Outlook - Positive

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• Inflation
• Commodity Prices
• Dollar
• Energy
• Productivity
• Outlook - Creeping Up

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• Public Policy
• Monetary Policy
• Fiscal Policy
• Regulation
• Trade

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Change in the Charlotte Labor Market
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Population Growth10-Year Average
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Comparative EmploymentPercent of Total
Employment, 2003
U.S. North Carolina Charlotte
Construction 5.2 5.6 6.1
Manufacturing 11.2 15.9 12.9
Trade 15.8 15.7 16.5
Finance 6.1 5.1 8.4
Leisure 9.3 8.8 8.6
Government 16.6 17.0 12.7
Education Health 12.8 11.3 8.3
Prof. Business Services 12.3 11.1 14.4
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Charlotte EmploymentPercent of Total Employment,
1983
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Charlotte EmploymentPercent of Total Employment,
2003
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Charlotte

• ()
• Major Financial Center
• Growing headquarters center.
• Above average industrial diversity.
• Well-educated workforce.

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Secular Changes In the Charlotte Labor Market
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• OUTSOURCING
• Macro Story
• Global Allocation of Resources
• Net vs. Gross Job Gains/Losses
• Efficiency
• Profits, Disposable Income
• Prices
• Goods, Services
• Shareholder Value
• Objectives of Management?

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• OUTSOURCING
• Micro Story
• Workers, Supplies
• Job Creation/Destruction
• Industries
• Manufacturing, 1979
• Communities
• Trade Adjustment

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• OUTSOURCING
• Cost of Inflexibility
• Work Follows Sales
• Emigration
• Long Term Change
• Education
• Productivity
• Dominate Job Creation Trends

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Charlotte

• (-)
• Declining Textiles
• Airlines
• Professional Schools/Tech
• High Taxes
• Unfinished Highway

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www.wachovia.com/economics