Jobless rates in Myrtle Beach make unusual move

The Grand Strand’s jobless rates dropped in November for the second consecutive month – an unprecedented move that even has economists stumped as the tourism-dependent area heads into the slower off-season.

Jobless rates in Horry and Georgetown counties traditionally skyrocket this time of year as businesses shed workers for the slow winter months, but the rates improved in both counties in November – following the statewide and national trend but stumping economists such as Rob Salvino, who has never seen Horry County’s rates decline in October and November based on the records he has dating to 1990.

Horry County’s rate ticked down slightly to 10.3 percent in November from 10.4 percent in October, while Georgetown County had more significant improvement, falling to 9.7 percent from 10.1 percent, according to statistics released Tuesday by the S.C. Department of Employment and Workforce. Last year, Horry County’s rate jumped from 11.1 percent to 12.2 percent between October and November.

“It’s hard to say exactly why that number keeps falling,” said Salvino, a research economist at Coastal Carolina University. “It just hasn’t happened before.

“It’s certainly a good sign. Time will tell if it’s really a persistent trend.”

The drops are in line with improvement statewide and nationally. South Carolina’s rate dropped to 9.9 percent in November from 10.5 percent in October – a 0.6 percentage point drop that state officials say is the largest monthly decline since 1976 when the Bureau of Labor Statistics made the monthly data available. The rate also plunged nationally in November to 8.6 percent from 9 percent in October.

“Through the efforts of the businesses in our state who have hired more South Carolinians, we have seen a significant decrease in the unemployment rate,” Abraham Turner, director of the state workforce department, said in a news release.

Despite uncertainty over what’s driving the declining rates along the Grand Strand, the area’s job market has improved since this time last year, according to statistics from the workforce department. Horry County’s rate was 12.2 percent in November 2010, compared to 10.3 percent last month, while Georgetown County’s rate dropped from 12.1 percent in November 2010 to 9.7 percent last month.

“We are still doing a lot better than November of last year,” said Frank Hefner, an economist at the College of Charleston who also said he wasn’t sure why the rates along the Grand Strand dropped between October and November.

Manufacturing has helped lead the way statewide, adding 10,800 jobs in the past year – 900 of them between October and November, according to the state workforce department. Trade, transportation and utilities added the most jobs of any sector last month – 8,800 – with 7,100 of those in retail as stores geared up for the holiday shopping season.

Leisure and hospitality, which is the backbone of the economy in the Myrtle Beach area, shed 3,300 jobs statewide last month. In Horry County, overall employment shrank by 1,862 jobs in November – a drop more in line with the traditional offseason trend.

Horry County needs a rebound in the construction industry to help bring back jobs, Salvino said. Statewide, 3,200 construction jobs have been cut since November 2010, according to the state workforce department.

“That’s the one that is really pulling everything down, along with government,” Salvino said. “That’s really still the drag on the economy and the recovery.”

The job market still has a ways to go before jobseekers will find it easier to land work, experts said. Though it’s been improving, Horry County’s double-digit rate still is significantly higher than November 2007 when the rate was 5.6 percent.

Some jobs are on their way to Horry County, including 150 manufacturing jobs that will be created through an expansion of an existing business, said Brad Lofton, president of the Myrtle Beach Regional Economic Development Corp., which is charged with bringing jobs to the county. Lofton declined to give details about the expanding company and jobs, but said an announcement will be made by the end of the year.

Another 80 manufacturing jobs at an existing business also are in the works, with an incentive package headed to Horry County Council for consideration next month, Lofton said. Another 54 jobs could come through if a corporation eyeing Horry County decides to move its headquarters here, he said.

“There’s a lot of optimism for 2012 that things are getting better,” said Joey Von Nessen, a research economist at the University of South Carolina. “It’s slow and steady. It’s still hard out there, still frustrating. The good news is we are seeing some improvement.”