|
Getting your Trinity Audio player ready...
|
South Carolina’s widely watched unemployment rate shot up to its highest level in more than three years last month, but the Palmetto State’s most important jobs indicator – its labor participation rate – still managed to record its best performance in more than three years.
According to data released by the U.S. Bureau of Labor Statistics (BLS), South Carolina’s workforce expanded by 0.1 percent during the month of August to reach 57.6 percent – its highest reading since May of 2021.
Unfortunately, only four states – Alabama and New Mexico (57.5 percent), West Virginia (55.1 percent) and Mississippi (54.4 percent) – had lower rates, and South Carolina remained well behind the national labor participation average of 62.7 percent.
For those of you uninitiated, labor participation refers to the size of a state’s workforce. It is the percentage of its population that is either employed or actively in search of work. Unlike the widely watched unemployment rate – which tracks a segment of workers within the labor force – labor participation tracks the size of the workforce itself.
That makes it a far more accurate gauge of how well a state is faring on the jobs front…
***
***
As for the unemployment rate, it soared 0.4 percentage points from last month – jumping from 3.9 percent to 4.3 percent. That puts it at its highest reading since March of 2021 – 1.5 percentage points higher than record lows achieved in June and July of last year.
For those of you keeping score at home, an estimated 2,522,541 (+9,620) South Carolinians were part of the workforce during August – including 2,414,621 (-521) who were gainfully employed and 107,920 (+10,141) who were unemployed but actively looking for work.
While sustained increases in the unemployment are obviously less than ideal, the continued churning of a steadily expanding workforce is not a bad thing over the long term. The problem? South Carolina’s eroded competitive position over the past few decades.
As I have frequently pointed out, labor participation began dipping from its peak of 68.5 percent – which was above the national average – right around the time the GOP takeover of state government began. Labor participation has not eclipsed the key 60 percent demarcation line since May 2012, former governor Nikki Haley’s second full year in office. When Haley left office in January 2017, labor participation in the South Carolina had plunged all the way down to 58.2 percent.
How to turn things around? Easy… stop feeding unnecessary government and start putting that money back into the economy, specifically into the pockets of small businesses and individual income earners.
BANNER VIA: GETTY IMAGES
***
ABOUT THE AUTHOR …
Will Folks is the owner and founding editor of FITSNews. Prior to founding his own news outlet, he served as press secretary to the governor of South Carolina, bass guitarist in an alternative rock band and bouncer at a Columbia, S.C. dive bar. He lives in the Midlands region of the state with his wife and eight children.
***
WANNA SOUND OFF?
Got something you’d like to say in response to one of our articles? Or an issue you’d like to address proactively? We have an open microphone policy! Submit your letter to the editor (or guest column) via email HERE. Got a tip for a story? CLICK HERE. Got a technical question or a glitch to report? CLICK HERE.
