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Monday, September 25    |    Upstate South Carolina News, Sports and Information

S.C. economy is suffering
State leaders should stop debating the statistics' accuracy and focus on fixing the root causes of high unemployment.

Published: Friday, September 1, 2006 - 6:00 am



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South Carolina's economy is suffering, despite a debate over what the state's economic statistics really show.

The state's unemployment rate in July was 6.2 percent, fifth-worst in the nation. The data renewed a debate over whether the state has serious economic problems or the unemployment rate belies a stronger economy. The latter is the tack Gov. Mark Sanford has taken by saying there's a "disconnect" between unemployment and signs that suggest a healthy economy -- job growth, increasing tax revenues and an increasing gross state product.

However, economist Bruce Yandle of Clemson University's Strom Thurmond Institute suggests those areas aren't all performing as well, either. For example, he cites statistics in his September economic update that show South Carolina ranks 28th in personal income growth, 36th in total state product growth and 39th in growth of total state revenues for the year.

It's also easy to see localized evidence that all is not well in the state. The state has 10 counties in which the jobless rate exceeds 9 percent.

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Said Sam McClary, labor market analyst with the state Employment Security Commission, according to a report in The Greenville News: "In our rural areas, where manufacturing is predominant, we have extremely high unemployment rates. That's what's keeping our unemployment above the national average." That may also help explain Sanford's disconnect.

And, while the unemployment rate in Greenville County is among the state's lowest at 5 percent, that compares with a monthly rate that was 1.5 percent as recently as 1998 and an annual rate below 3 percent from 1997 to 2000. Further, an economic development report issued early this year showed the county's per capita income is lower than the national average and has dropped every year since 2000 in real terms.

This state needs solutions, not debates over statistics. State leaders need to find the root causes of our economic woes and begin helping those who have been affected by the economic slump. That includes attracting high-paying jobs and effectively training the future work force. Finally, they need to end the political bickering over why certain statistics may or may not be valid and stop ignoring the reality of the state's economy.


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