18 NC counties change places in 2026 economic development tier rankings – Business North Carolina

2026 County Economic Distress Report: An Analysis Aligned with Sustainable Development Goals

Introduction: A Framework for Sustainable and Equitable Development

The 2026 North Carolina county tier designations provide a critical framework for assessing regional economic health and strategically directing resources to advance the Sustainable Development Goals (SDGs). This system serves as a mechanism to address SDG 10 (Reduced Inequalities) by identifying areas of economic distress and promoting inclusive growth in line with SDG 8 (Decent Work and Economic Growth). In 2026, eighteen counties will have their designations adjusted, reflecting dynamic shifts in local economic conditions.

Summary of 2026 Tier Designation Adjustments

The re-designation of counties highlights both progress and emerging challenges in achieving sustainable development across the state. Nine counties have improved their economic standing, while nine face increased distress.

• Counties Demonstrating Progress Towards SDG 8 (Decent Work and Economic Growth) by moving to a less distressed tier:
  • Beaufort
  • Camden
  • Davie
  • Graham
  • Macon
  • Montgomery
  • Randolph
  • Stanly
  • Surry
• Counties Facing Challenges in Achieving SDG 1 (No Poverty) and SDG 8 by moving to a more distressed tier:
  • Buncombe
  • Burke
  • Granville
  • Haywood
  • Henderson
  • Jones
  • Madison
  • Pasquotank
  • Yancey

Assessment Methodology and Correlation with SDG Indicators

The tier designation methodology, mandated by state law, relies on four economic indicators that directly correlate with targets under the Sustainable Development Goals. The state is statutorily divided into 40 Tier 1 (most distressed), 40 Tier 2, and 20 Tier 3 (least distressed) counties to ensure targeted interventions.

1. Unemployment Rate: A primary indicator for SDG 8, which aims to achieve full and productive employment and decent work for all.
2. Median Household Income: A direct measure of economic well-being, essential for monitoring progress on SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities).
3. Population Growth: An indicator of a region’s economic vitality and its ability to support sustainable communities as outlined in SDG 11 (Sustainable Cities and Communities).
4. Assessed Property Value Per Capita: Reflects the local economic base necessary to fund and maintain resilient public infrastructure, a core component of SDG 9 (Industry, Innovation, and Infrastructure).

Strategic Investment for SDG-Aligned Development

Tier designations are integral to the administration of state economic development programs, channeling financial assistance to areas where it can have the greatest impact on sustainable development outcomes. These programs are designed to foster economic resilience and reduce regional disparities.

• Infrastructure and Community Development: Grants for building reuse, water, and sewer projects directly support the development of resilient infrastructure (SDG 9) and the creation of sustainable communities (SDG 11).
• Economic Growth and Job Creation: The One North Carolina Fund and the Job Development Investment Grant (JDIG) program incentivize private investment and job creation, advancing the goals of SDG 8 (Decent Work and Economic Growth).
• Reducing Inequality: The system funnels resources, such as those for the Industrial Development Fund – Utility Account, into the most economically distressed (Tier 1) counties, directly addressing the objective of SDG 10 (Reduced Inequalities) by ensuring development benefits are distributed more equitably across the state.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty

  The article’s core theme is economic distress, which is directly related to poverty. The tier system is a mechanism to identify and support the most “economically distressed” counties, aiming to alleviate poverty through targeted economic development. The use of “median household income” as a key factor reinforces this connection.

• SDG 8: Decent Work and Economic Growth

  This goal is central to the article. The entire tier designation system is designed to foster economic development and job creation. The article explicitly mentions the “unemployment rate” as a primary metric and refers to programs like the “One North Carolina Fund” and the “Job Development Investment Grant program,” which are aimed at stimulating economic growth and creating jobs in struggling areas.

• SDG 10: Reduced Inequalities

  The article addresses inequality between different geographic regions (counties) within the state. The tier system is a policy tool to reduce these economic disparities by channeling “funds into the Industrial Development Fund – Utility Account for infrastructure improvements into more economically distressed areas.” This targeted assistance aims to level the economic playing field across the state.

• SDG 11: Sustainable Cities and Communities

  The article connects to this SDG through its mention of infrastructure development. It states that tier designations determine eligibility for “building reuse, and water and sewer infrastructure grants.” Investing in basic infrastructure like water and sewer systems is a fundamental component of creating sustainable and resilient communities.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Under SDG 1 (No Poverty)

  1. Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions. The state’s tier system serves as a “national definition” (at the state level) of economic distress, and the associated programs aim to reduce this distress.

• Under SDG 8 (Decent Work and Economic Growth)

  1. Target 8.1: Sustain per capita economic growth in accordance with national circumstances. The article’s focus on factors like “assessed property value per capita” and “median household income” reflects a goal of sustaining and improving local economic growth.
  2. Target 8.5: By 2030, achieve full and productive employment and decent work for all. The use of the “unemployment rate” as a key factor directly aligns with this target, as the state programs aim to lower unemployment in distressed counties.

• Under SDG 10 (Reduced Inequalities)

  1. Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all…irrespective of…economic or other status. The tier system is a mechanism to promote the economic inclusion of residents in distressed counties by directing resources to overcome regional disparities.

• Under SDG 11 (Sustainable Cities and Communities)

  1. Target 11.a: Support positive economic, social and environmental links between urban, peri-urban and rural areas by strengthening national and regional development planning. The county tier system is a clear example of state-level regional development planning designed to manage and support economic links between different areas.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article explicitly states the four economic factors used by N.C. Commerce to determine the county tier rankings. These serve as direct indicators for measuring economic distress and progress.

• Unemployment rate: This is a direct indicator for SDG Target 8.5 (full and productive employment). A decreasing unemployment rate in Tier 1 counties would indicate progress.
• Median household income: This indicator measures progress towards SDG Target 1.2 (reducing poverty). An increase in median household income would signify a reduction in economic distress.
• Population growth: This can be an indicator of economic health and community vitality, relevant to SDG Target 8.1 (economic growth). Positive population growth can suggest that a county is becoming a more desirable place to live and work.
• Assessed property value per capita: This indicator reflects the wealth and economic base of a county, making it relevant for measuring progress towards SDG Target 8.1 (per capita economic growth). An increase in this value indicates a strengthening local economy.

4. Summary Table of SDGs, Targets, and Indicators

Source: businessnc.com