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Article published: Jul 23, 2005
Area unemployment rises in June

After three months of having their unemployment rates decline, Sumter, Lee and Clarendon counties saw an unemployment rise in June.

Clarendon County has the highest rate in the tri-county area with 9.3 percent of its population looking for work, according to statistics released Friday by the South Carolina Employment Security Commission.

John Truluck, executive director of the Clarendon County Development Board, said the increase matches those that occurred in neighboring counties. Lee County climbed to 9.2, up from 7.8 in May. Sumter's unemployment rate climbed from 7.9 in May to 8.8.

Clarendon's May unemployment rate was 8.2.

"A point jump a month is not very unusual anymore," Truluck said. "We hadn't had any major closings in the past four years. I would really be looking harder if our numbers were significantly different from the others."

"I do know of a couple of areas of minor layoffs, but that is it," said Greater Sumter Chamber of Commerce President Grier Blackwelder.

The numbers have changed only slightly from a year ago. In June 2004, Clarendon County had an unemployment rate of 8.9 percent, Sumter County had a rate of 8.3 and Lee County was at 9 percent.

What is strange to Truluck about the latest numbers is that the state's average remained at 6.3.

"The state unemployment rate remained the same, but every county except one went up," he said.

Statewide unemployment has declined for three straight months. The state has the fourth-highest unemployment rate in the nation, according to statistics from the U.S. Department of Labor. The national jobless rate dropped a tenth of a point to 5 percent in June.

According to the state employment security commission, "the nonfarm job picture in June was virtually unchanged from the May level.

The private sector added 8,800 jobs with notable, tourism-related gains in leisure and hospitality (3,900), professional and business services (1,800), and construction (1,500). However, state and local schools closing for the summer caused government to shed 9,200, resulting in an overall loss of 400 for the month. Based on job-growth figures for the past two months, it does not appear that tourism is going to provide the hoped-for boost to set our economy on a more steady growth pattern."

Sumter Mayor Joe McElveen said the rise in unemployment is obviously not good.

"We have lost a lot of jobs over the past couple of years," he said. "Our unemployment is growing despite the rest of the state having its unemployment rate go down."

But there is hope for improvement, he said.

"I know for instance that we've had, and have, excellent prospects but we have not been able to finalize anything at this point," McElveen said.

McElveen said Sumter, like the rest of the state, is having trouble competing with other states, such as North Carolina, that are able to offer more incentives to industry.

"There are a lot of things going on that we have no control," he said. "We've really got to find some solutions to that if we are going to continue to grow."

Sumter County's unemployment rate grew by 2.2 percentage points in 2004, even higher than Punta Gorda, Fla., which sustained major damage from Hurricane Charley in August and saw an unemployment increase of 1.6 points.

Plant and store closings in 2004 left many Sumter residents looking for work.

Bosch Braking Systems announced in January 2004 that the company would begin laying off workers this year and eventually close the doors of its drum brake division. About 400 workers will eventually be affected by the company's decision to move its production lines to Mexico.

Also that month, Santee Print reported the layoff of 25 employees. In May 2004, Southeastern Caseworks, a manufacturer of custom cabinets and cases for retailers, closed, leaving about 50 workers unemployed.

In June of last year, the Winn-Dixie grocery store on Pinewood Road closed, leaving 30 employees looking for work.

Then, about 400 workers at V.B. Williams furniture factory were given a 60-day notice that the plant would close.

Federal Mogul, which announced in 2002 it would close its powertrain systems plant in Sumter, completed its final round of layoffs last week. The plant employed 275 workers when the announcement was made and began laying off workers in December 2003.

In February of this year, Santee Print confirmed the layoff of 55 more employees. In June, it was announced that the Winn-Dixie grocery store on Wesmark Boulevard would close, taking up to 75 jobs with it.

The closing of several small businesses, stores and restaurants have left others looking for work.

"There are some very good prospects, and we are in the finals on them, but then again there is always North Carolina there," McElveen said. "It's kind of like a poker game, if you can't meet the bids you have to get out."

Contact Staff Writer Bethany Fuller at bethanyf@theitem.com or 803-774-1272.