South Carolina saw its unemployment rate tick up in October even as the economy remains strong.
The unemployment rate moved to 4.7% in October, a 0.2 percentage point increase from September and a 1.7 percentage point jump from last October, according to the S.C. Department of Employment and Workforce.
SCDEW Director William Floyd said this first post-Helene report did not show a significant spike, despite a swing in the number of unemployed people.
“While the number of people unemployed rose from 113,975 to 118,125, the state did not see a significant spike,” Floyd said in a statement. “However, we did see the payroll number dip from 2,393,900 to 2,390,400 as some businesses lost power or were temporarily closed as a result of the hurricane.”
Industry Movements
For October, total payroll in the state declined by 3,500 jobs. That net loss was driven by professional and business services (2,400 jobs) and leisure and hospitality (2,100 jobs), followed by manufacturing (1,400 jobs), trade transportation and utilities (800 jobs) and financial activities (500 jobs).
Those job losses were partially offset by strong job gains in the education and health services sector (3,000 jobs) and construction (1,300) jobs.
One of the state’s most prominent manufacturers, Boeing, announced it would be cutting 220 jobs at its North Charleston plant as part of a 10% company-wide cost measure. The aerospace giant, which produces the 787 Dreamliner at the plant, alerted SCDEW of its intentions with the positions set to be eliminated on Jan. 17, 2025. The plant employs about 7,500 employees, per the S.C. Department of Commerce.
Bethany Greene, a Federal Reserve Bank of Richmond regional economist, said despite the October fluctuations, the state’s job growth remains solid.
"Total payroll employment in South Carolina declined, mostly due to the impacts of Hurricane Helene,” Greene said in a statement. “However, the state continues to see solid annual job growth."
South Carolina’s 4.7% unemployment rate is above the nation’s 4.1%.
By industry, construction, natural resources and mining, and information are the fastest growing industries for the past year. Due to increased state and federal funding, there are billions of dollars being spent annually on major, long-term transportation infrastructure projects across the state.
Economic Picture
Despite the unemployment increase, South Carolina’s economy remains strong.
Members of the Board of Economic Advisors met Tuesday to evaluate tax and fee revenue numbers as well as prepare revenue forecasts for lawmakers who will soon start crafting the fiscal year 2026 budget which takes effect on July 1. The economists said personal income, the primary driver of revenue collections, has continued to grow faster than expected, leading to higher income tax withholdings, consumer buying power, and revenue collections.
BEA analysis found South Carolina’s personal income and employment are expected to grow through the current fiscal year and into the next, although growth is expected to slow from the above-average rates experienced in recent fiscal years.
The BEA forecasts $13.98 billion for lawmakers to budget with, reflecting expected growth of 2.5%, or $334.7 million, over the revised FY 25 forecast. Personal income growth is expected to slow from 5.7% this current fiscal year to 4.6% in 2026. Recent trends in labor market dynamics indicate slower wage growth, a key component of personal income, as the total labor force is growing faster than total employment.
