Economic standing changes for 18 counties: Cleveland remains economically distressed as a Tier 1

By David Beasley | The Center Square contributor

Tier 1 counties are the most economically distressed. The tier system is used to direct state grant programs and incentives to counties that are the most in need of economic development. For example, companies creating jobs in Tier 1 counties can receive a higher percentage of incentives.  Graphic by The Shelby Independent

(The Center Square) – Eighteen counties either have changed tiers in the annual release of economic health from the North Carolina Department of Commerce.

The “tier” rankings, starting with 1 for the most economically distressed and 3 for the least distressed, are used as a factor in determining state grants and other forms of assistance.

Beaufort, Camden, Davie, Graham, Macon, Montgomery, Randolph, Stanly and Surry counties moved up for 2026. Buncombe, Burke, Granville, Haywood, Henderson, Jones, Madison, Pasquotank and Yancey fell to a more distressed tier.

The tiers are based on factors such as the unemployment rate, median household income, population growth, and assessed property value.

Under state law, 40 counties are designated Tier 1, 40 Tier 2, and 20 counties Tier 3.

In 2025, the same number of counties – 18 – changed tiers, with nine going up and nine going down.

North Carolina has experienced a string of corporate expansion announcements, particularly in the last few months of this year.

Both Hurricane Helene and the recent federal government shutdown affected the new tier designations, according to the Commerce Department.

“The hurricane led to a rise in unemployment in western North Carolina, impacting not only their rankings but other counties' rankings across the state,” the department said. “In addition, the shutdown delayed the release of recent monthly unemployment data. As a result,the most recent 12-months of county unemployment data reflect a September 2024 to August 2025 timeline.”

The Tier 1 counties, listed alphabetically, are Alexander, Anson, Bertie, Bladen, Burke, Caldwell, Caswell, Cleveland, Columbus, Cumberland, Edgecombe, Greene, Halifax.

Also, Hertford, Hoke, Hyde, Jones, Lenoir, Madison, Martin, McDowell, Mitchell, Nash, Northampton, Pasquotank, Pitt, Richmond, Robeson, Rockingham, Rutherford, Sampson, Scotland, Tyrrell, Vance, Warren, Washington, Wayne, Wilkes, Wilson and Yancey.

(Tier 2 and 3 listed below local sponsors...)

The Tier 2 counties are Alamance, Alleghany, Ashe, Avery, Beaufort, Buncombe, Catawba, Cherokee, Chowan, Clay, Craven, Dare, Davidson, Duplin, Forsyth, Franklin, Gaston, Gates, Graham, Granville, Guilford, Harnett, Haywood, Henderson, Jackson, Lee, Montgomery, Onslow, Pamlico, Perquimans, Person, Polk, Randolph, Rowan, Stokes, Surry, Swain, Transylvania, Watauga and Yadkin.

The Tier 3 counties are Brunswick, Cabarrus, Camden, Carteret, Chatham, Currituck, Davie, Durham, Iredell, Johnston, Lincoln, Macon, Mecklenburg, Moore, New Hanover, Orange, Pender, Stanly, Union and Wake.

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