South Carolina unemployment hits record 12.6 percent in December despite fewer seeking work

SC jobless rate hits record 12.6 percent in Dec.

COLUMBIA, S.C. — South Carolina’s unemployment rate rose sharply in December to a record 12.6 percent despite a drop in the number of people looking for work.

The Employment Security Commission figures released Friday were up from November’s 12.3 percent rate and well above the 10 percent national rate. In November, South Carolina’s rate was the nation’s fourth highest. Michigan’s 14.6 percent was the nation’s highest, followed by Nevada at 13 percent and Rhode Island’s 12.9 percent.

December’s South Carolina figures were led by losses in tourism related jobs.

The commission noted the labor force was at its lowest level since September 2008 as fewer people actively sought work.

“This is a bad signal all around,” College of Charleston economist Frank Hefner said. Usually economists can point to rising unemployment coming out of a recession as a positive sign of more people are looking for work. Instead, “you’ve got the labor force shrinking, which means people are leaving the labor market because they are discouraged or satisfied with their unemployment compensation.”

Coastal Carolina University economist Don Schunk said in his monthly analysis he expects the state’s unemployment rate to peak between 13 percent and 14 percent and that is “now apparently within easy reach.”

While job losses are slowing from levels seen in 2008 and early 2009, Schunk notes “we have not yet seen signs of employment stability.”

In all, 6,720 people left the labor force. Meanwhile, job losses continued to mount with 5,200 lost in leisure and hospitality business and 4,000 from business and professional services. Manufacturers continued to shrink payrolls with 800 more unemployed there.

There were a couple of bright spots as retailers hired 700 people and the transportation, warehousing and utilities sector picked up 1,000.

The job losses came as the state’s economic development efforts paid off with big wins, including landing a Boeing Inc. aircraft assembly line in North Charleston. But it will take years for all the promised 3,800 jobs to materialize.

While that’s a glimmer, the gloom is overwhelming. “We’d have to add more than 37,000 jobs to get back to where we were in 2008 and 2008 wasn’t a great year,” Hefner said. “That’s a lot of Boeings.”

Allendale and Marion counties had the highest rates of 23.6 percent and 22.6 percent respectively, with Marion County’s joblessness up by 1.4 percentage points from November. Lexington County posted the lowest rate 8.7 percent.