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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. |