Sanford: State's Unemployment Rate Third-Worst In Nation

COLUMBIA -- The South Carolina Employment Security Commission warns that the state's unemployment rate is unlikely to significantly decline any time soon.

The agency said Thursday that South Carolina's unemployment rate was 7.1 percent in February, up from 7.0 percent the month before. The national unemployment rate rose to 5.4 percent from 5.2 percent.

"It is unlikely that we will see any significant improvement in the state’s jobless picture in the near future. Layoffs and closures already announced in the manufacturing sector will keep upward pressure on the unemployment rate for the next few months," the agency said in a news release.

In the Upstate, Union County had the highest rate at 13.1 percent, while Greenville County had the lowest rate in the state at 5.3 percent.

Gov. Mark Sanford used the unemployment figures to promote his income tax relief proposal to lower South Carolina's top tax rate from its current 7 percent to 4.75 percent, which was replaced in the state Senate earlier this month with a proposal that targeted small businesses.

"As a fiscal conservative, I think the equation is pretty simple -- we need to put more money into our economy and less into the growth of government," Sanford said in a news release. "We're never going to raise income levels and create new jobs in our state unless we start investing more money into our economy -- which is what our plan does."

Sanford said South Carolina now has the third worst unemployment rate in the nation, behind Michigan and Alaska.

"Given the fact that there are now only two states in the nation with a worse jobs problem than ours, and given the fact that things don't seem to be getting any better, I'd say the need to move forward with our broader income tax relief proposal is now pretty clear," he said. "When you've got the third highest unemployment rate in the nation, you need to be hitting on every economic development engine you possibly can, not just one."

Previous Stories:

• March 23, 2005: Sanford Enlists Help To Sell Income Tax Plan
• February 23, 2005: Credit Agency Pans Sanford's Income Tax Cut Plan
• February 18, 2004: Governor, House Speaker Announce Plan To Lower Income Tax