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SC unemployment rate hits 11.5 percent for April

By MEG KINNARD, The Associated Press  Saturday, May 23, 2009

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COLUMBIA, S.C. (AP) — South Carolina's unemployment rate set a state record high of 11.5 percent in April, the state Employment Security Commission announced Friday.

The April rate was again the nation's third highest, behind Michigan (12.9 percent) and Oregon (12.0 percent). South Carolina's previous record was 11.4 percent, first set in January 1983 and matched in March.

Unemployment in the Palmetto State has now increased for 14 straight months. The number of unemployed workers more than doubled during that time to nearly 253,000 people.

There was some good seasonal news in Friday's report. The number of nonagricultural jobs rose for the second month in a row, gaining 9,700 in April. Leisure and hospitality jobs also got a boost of 6,700 more jobs, gains the commission attributed to warmer temperatures.

Manufacturing and construction lost a total of 2,300 jobs, and the overall state job count was nearly 89,000 jobs less than a year ago.

Don Schunk, research economist at Coastal Carolina University, predicted Friday that the economy would continue to worsen until the end of this year, when things might begin to turn upward.

"The critical question now is 'What will the coming recovery look like?'" Schunk said. "Right now, I expect the coming recovery to be sluggish — characterized by below average economic growth — perhaps for several years."

Nationally, the unemployment rate climbed to 8.9 percent in April. That was up nearly a half-point from 8.5 percent in March. A year ago, the U.S. rate was at 5.0 percent.

Chester County had the state's highest unemployment rate, with 21.8 percent. Lexington County again recorded the state's lowest rate, at 7.6 percent.

Local economic officials said the March closure of a Superior Essex telephone cable plant, and the loss of more than 200 jobs, helped Chester County's rate rise ahead of perennial unemployment leader Allendale County.

"Superior Essex was a very big one," said Jim Fuller, president of the Chester County Chamber of Commerce.

Friday's report came a day after the Legislature wrapped up its regular session without overhauling the agency that tracks unemployment, a change that had been a top goal of Gov. Mark Sanford.

Sanford recently approved borrowing $20 million to cover unemployment checks.

Legislators have seen the persistent need to borrow since last fall as a sign the governor needs greater control of the agency. But bills to do that stalled in the House and Senate in the midst of ongoing bickering with Sanford and as legislators said overhauling the agency should wait until a formal audit of its shortcomings is completed this summer.

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