Unemployment rate
reaches 7 percent
PAMELA
HAMILTON Associated
Press
COLUMBIA, S.C. - South Carolina's unemployment
rate rose one-tenth of a point to 7 percent in January, the state
Employment Security Commission said Thursday.
South Carolina had the fourth-highest jobless rate among states.
It has been among the top ten with the highest rate for the past
year, officials at the commission said.
Marion County had the highest unemployment rate at 15.8 percent,
followed by Williamsburg at 14.3 percent. Greenville County had the
lowest rate at 4.7 percent.
Gov. Mark Sanford said the rate is a "clear and present economic
danger" and called for reducing the state's top income tax rate to
4.75 percent from 7 percent. Sanford said lowering income taxes has
stimulated the economy and created new jobs in other states.
"Sadly, we are going to continue to fall further behind the rest
of the country in creating jobs and growing our economy unless we
start taking steps right now to make South Carolina more
competitive," Sanford said in a statement.
South Carolina's unemployment rate outpaces the national rate,
which was 5.2 percent in January. Only Alaska, Michigan and
Mississippi had higher unemployment rates in January, Sanford
said.
The real reason South Carolina is losing the fight for jobs is
because the state educational system isn't doing enough to provide a
highly skilled workforce in a technology-based economy, said Al
Parish, an economist at Charleston Southern University.
"The competitive edge that other states have over South Carolina
in the fight for jobs isn't the income tax," Parish said. "It has to
do mostly, in my opinion, with education."
Adjusting the income tax may attract wealthy retirees to the
state but will have little effect on the jobless rate, he said.
"In essence, what I'm saying is tax reform isn't the key to
economic development," Parish said.
Clemson University economist Bruce Yandle said tax policies do
matter to unemployment, but doubted there would be a dramatic change
if the Sanford's proposal was implemented.
Yandle also said seven percent unemployment is "nothing to
celebrate," but might not be as bad as it sounds. Employment in
South Carolina is rising, too, meaning more people have jobs and
more people are seeking jobs, he said.
"When you look at the unemployment rate, just the number, you
can't necessarily draw a conclusion as to whether it's bad news or
good news," Yandle said. "Right now it looks like it's mixed
news."
The state's "still heavy dependence on manufacturing" is a reason
for the high jobless rate, said Sam McClary, a labor market analyst
for the commission.
"That's why we're number five in the nation," McClary said. "But
certainly being that high is a reason for concern."
Parish added that rural areas have been focused too long "on how
to bring those jobs back instead of how to replace them."
Analysis of job loss by sector was not released Thursday, McClary
said. |