|
Getting your Trinity Audio player ready...
|
Last month, South Carolina’s unemployment rate continued to climb – while the size of its overall workforce remained stagnant – according to data released by the U.S. Bureau of Labor Statistics (BLS).
The short-term spike in joblessness is somewhat concerning, but the real problem is the Palmetto State’s decades-long lack of competitiveness in terms of labor participation.
Labor participation refers to the percentage of a state’s population that’s 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 means it is a far better indicator of sustained job creation – or lack thereof.
South Carolina’s labor participation rate clocked in at 57.6 percent last month – the same as the previous month. While that number is up from its historic lows, it remained well below the national average of 62.7 percent. For those of you interested in the historical, visual trends on these numbers, our inimitably amazing Jenn Wood has you covered…
***
***
Only five states fared worse on this key indicator in September: Alabama (57.5 percent), New Mexico (57.5 percent) West Virginia (55.1 percent) Mississippi (54.5 percent).
As for the Palmetto State’s unemployment rate, it climbed another 0.2 percent last month – rising from 4.3 percent to 4.5 percent. That puts it at its highest reading since January of 2021 – 1.7 percentage points higher than record lows achieved in June and July of last year. South Carolina’s unemployment rate is also now back above the national average of 4.1 percent.
For those of you keeping score at home, an estimated 2,527,319 (+4,778) South Carolinians were part of the workforce during August – including 2,413,337 (-1,284) who were gainfully employed and 107,920 (+6,062) who were unemployed but actively looking for work.
***
***
As I’ve often noted, temporary aberrant upticks in unemployment do not concern me – although this would now appear to be a more sustained spike than previously anticipated. What concerns me is the continual erosion of our workforce over time – as seen in the plummeting labor participation.
As I have frequently pointed out, labor participation began dipping from its peak of 68.5 percent – which was well 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.
Republicans have been – and still are – the party of bigger government in the Palmetto State. And sadly, the results on our economy are telling.
***
ABOUT THE AUTHOR …
Will Folks is the founding editor of the news outlet you are currently reading. Prior to founding FITSNews, he served as press secretary to the governor of South Carolina. 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.
4 comments
While the LPR is important to some extent, it is complex in its underlying factors. A reduction in the LPR from 60 to 58.2% is not a “plunge.” From 2000 to the present, SC’s percentage of retirees [i.e., people not employed- at least not full time- who have enough money to be able to be retired] has increased by 92%, and its present percentage of total population, at 18.2% is second only to Florida in the entire southeast (including Texas) and 10th in the nation. You have to take these factors into consideration when looking at LPR as an indicator of economic health. An LPR of 75+ percent would not likely be a good indicator of economic health, if coupled with figures that indicate that people are barely getting by and have very little disposable income. The better indicator of economic health would be growing household income coupled with low inflation and low household debt levels.
After Trump’s mass deportations you’ll really see labor participation take a dive.
Lies. An American citizen can frame your house, cut your grass, or pour your concrete driveway just the same.
Thank you for bringing in the economic changes that affect this statistic. It’s not always about politics.