Charlotte businesses weigh workforce plans for 2026

Writer: Andrea Teran

Key points:

• Charlotte enters 2026 with low unemployment but cautious hiring expectations among employers.

• Business sentiment remains mixed as firms balance stable operations with economic uncertainty.

• High interest rates and broader macro headwinds are tempering workforce expansion plans.

January 2026 — The Charlotte metropolitan area is entering 2026 with one of the lowest unemployment rates in the Southeast, but business leaders are signaling caution when it comes to expanding their workforce.

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More than 84% of firms in the region expect no change in their employee count over the next six months, according to the U.S. Census Bureau’s Business Trends and Outlook Survey, as reported by The Herald. The recurring national survey, which polls over 1.2 million businesses, showed that in its final 2025 release, firms across the 11-county Charlotte metro — spanning North and South Carolina — reported stable operations but limited hiring plans.

Just 10.6% of local businesses plan to grow their teams, while 5% anticipate reductions, according to data reported by The Herald from the Census Bureau’s final 2025 survey. This reflects the broader national cooling in hiring intentions, as tracked by the Invest: Business Sentiment Survey (I:BSS), which found a decline in the share of U.S. executives expecting to expand their teams between the 3Q25 and 4Q25.

Regional job market holds strong

Despite employer caution, Charlotte’s underlying labor market remains structurally healthy. The Charlotte-Concord-Gastonia MSA reported a 3.8% unemployment rate in September 2025, according to data from the Federal Reserve Bank of St. Louis. In Mecklenburg County, the jobless rate stood at 3.7% entering 4Q25.

The Federal Reserve Bank of St. Louis also reported that the region’s civilian labor force surpassed 1.5 million workers by year-end, reflecting steady population growth and job creation across core sectors like finance, healthcare, and professional services. 

Business performance sentiment remains split

While Charlotte’s workforce continues to expand, business expectations remain mixed. Only 22.2% of firms in the region expect to perform above average in the next six months. Just over half expect average results, and nearly 18% expect below-average performance, according to the U.S. Census Bureau’s Business Trends and Outlook Survey.

National data from the Invest: Business Sentiment Survey (I:BSS) conducted by caa echoes this mood of tempered optimism. In 4Q25, 73% of business leaders nationwide rated their regional economy as strong, down from 76% a year earlier. Meanwhile, 69% of leaders reported that they expect to expand their teams within the next six months — a decrease from 75% in the previous quarter and 73% year over year.

The softening outlook corresponds with broader economic headwinds. The Federal Reserve Bank of Philadelphia projects real GDP growth of 1.9% for 2025 and 1.8% in 2026.

Hiring meets headwinds

The national unemployment rate rose to 4.6% in November 2025, the highest level since 2021 according to the U.S. Bureau of Labor Statistics. In Charlotte, conditions remain tighter, but the local hesitation to hire suggests employers are watching for further signals before committing to expansion.

“Hiring is challenging across all industries right now, given slow population growth and demographic shifts… It’s about being proactive, responsive, and continually investing in our people,” one financial services executive told I:BSS.

Charlotte leaders report similar views, especially in capital-intensive sectors like real estate.

“The biggest challenge by far is the cost of capital. Interest rates have stayed high longer than many expected, and that’s dampened traditional real estate development,” said a legal sector executive in the Charlotte area.

Want more? Read the Invest: Charlotte report.