SC jobless rate drops to 15-year low

The state’s seasonally adjusted unemployment rate decreased in June to 5.4 percent from 5.6 percent in May, marking its lowest level since July 2001, according to a report from the S.C. Department of Employment and Workforce

The state’s unemployment rate has averaged 5.6 percent for the first six months of 2016, the report showed.

Nationally, the unemployment rate increased by 0.2 percentage points to 4.9 percent in June as many people entered the labor force, it said.

South Carolina’s employment level reached 2,185,181 – a historic high – gaining slightly in June as 109 people found work. The number of unemployed decreased in June by nearly 4,270 to 125,591.

The jobless marker is reason to celebrate, Gov. Nikki Haley said Friday in her remarks about the June report, but there remains more work to do. “Today's announcement is all the motivation we need to stay focused on things like workforce training, tax relief and investments in our students so we can keep the momentum going,” Haley said.

South Carolina’s jobless rate rose from just under 6 percent in January 2007 to just under 12 percent in 2010, statistics show.

Jobs chief Cheryl Stanton also praised the June report, but noted 126,000 South Carolinians remain out of work. “Businesses are putting their trust in us that we can provide them with a skilled workforce as they create new jobs by expanding or opening new facilities across the state,” said Stanton, Employment and Workforce department executive director.

South Carolina this month became the first fully certified Work Ready state in the nation, meaning it is the first state to have every county certified as work ready. A skilled, highly-trained workforce is the most critical component in the competition among to succeed, according to S.C. Chamber of Commerce president Ted Pitts.

“Being the first fully certified Work Ready state in the nation is a big deal and I can guarantee that business leaders around the world looking to locate their operations and grow will consider this another important indication that the Palmetto State is the best place in the country to do business,” Pitts said in a statement about the certification.

During the last year, 67,545 job seekers found work, and the level of unemployed individuals decreased by an estimated 7,250. Since June 2015, the labor force has grown by nearly 60,295 people.

In June, the state’s labor force dropped by 4,161 to 2.3 million. However, June’s drop was an aberration, according to Joey Von Nessen, research economist at USC’s Darla Moore School of Business.

“The fundamentals of South Carolina’s economy have been strong,” over time, Von Nessen said. “We’ve seen steady growth in employment over the last several years across most industries, and that’s underscored by the fact that we are also seeing income growth in 2016.”

The rising demand for labor over time has reached a tipping point in the S.C. economy where it is beginning to put upward pressure on wages, Von Nessen said. The result is, South Carolinians are actually seeing income gains and it is a trend that is expected to continue, he said.

The number of people in the South Carolina labor force has grown steadily since 2014, Von Nessen said. South Carolinians have been seeing more opportunities to get back into the labor force by getting a job, Von Nessen said. As the trends of steady employment and steady labor force gains continue, Von Nessen said the state’s unemployment rate can be expected to continue to hover around 5.5 percent, with only slight fluctuations.

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that have emerged over the last several years of steady employment and steady labor force gains continue on their present growth

South Carolina saw gains in professional and business services (up 3,200); government (up 2,600); and financial activities (up 1,400). Additional growth was also reported in trade, transportation, and utilities (up 200); education and health services (up 200); and information (up 100).

Industries reporting declines were manufacturing (down 700); leisure and hospitality (down 700); other services (down 700); and construction (down 400).

This story was originally published July 22, 2016 at 5:34 PM with the headline "SC jobless rate drops to 15-year low."