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Maybe it is not as bad as it sounds.
South Carolina’s unemployment rate spiked back above 9 percent in May after 10 straight months of declines.
However, the uptick – to 9.1 percent in May from 8.8 percent in April – may not be as bad as it might seem because, in part, it is due to more people looking for work. Nearly 2,000 people entered the labor force in May in South Carolina, including college graduates and those looking for summer work.
But those would-be workers are jumping into the market at a time when finding work is getting a little harder as economic concerns begin to intensify, economists said.
“We were adding jobs at a stronger pace earlier this year,” said Mark Vitner, senior economist with Wells Fargo in Charlotte. “A lot of businesses have grown cautious.”
The European debt crisis has stoked fears that a recession overseas could lead to economic weakness in the United States. Also, unsettled federal health care laws, now before the U.S. Supreme Court, and tax breaks, set to expire at the end of the year, have employers in limbo.
However, the Federal Reserve could provide some help next week to prop up the economy.
“The economy’s slowing again,” Vitner said. But, so far, “it doesn’t look like it’s sliding into recession.”
Nationally, the jobless rate ticked up to 8.2 percent in May from 8.1 percent in April as 642,000 people joined the labor force.
In South Carolina, the number of unemployed people increased in May by 5,861 to 195,905. At the same time, the number of employed people decreased by 3,886 to 1,957,360.
Still, there were bright spots in the state report released Friday by the S.C. Department of Employment and Workforce.
The state gained 16,800 jobs in May, most in retail and professional services – each of which gained 4,700 jobs for the month. The leisure and hospitality industry also saw an increase of 3,700 jobs.
Employment fell slightly in only one category – manufacturing – even though it has gained 7,000 jobs since May 2011.
Construction activity also appears to be increasing, Vitner said. That industry added 1,400 jobs in May, though it is still down 1,700 jobs from a year ago.
Over the last year, the state has gained about 24,000 jobs. But that is only about half of the number lost during the worst recession in a lifetime, said Joey Von Nessen, research economist with the Moore School of Business at the University of South Carolina.
“We still have a long way to go,” he said. “We need our job growth to be more aggressive. … It’s a sluggish recovery.”
However, the state is setting itself up for job growth in future years, when economic development announcements – made over the past couple of years – start producing jobs, Von Nessen said.
“Sometimes, that takes a while,” he said. “It’s a future indicator rather than something that’s going to start tomorrow.”
There are pockets of growth in certain industries, Von Nessen said. But he expects the unemployment rate to hover around where it is now for the summer.
In general, the economy is stronger than it has been in a while despite the recent slowdown, Wells Fargo economist Vitner said.
Gas prices – soaring near $4 a gallon earlier this year – are falling, dipping on Friday to an average of $3.10 a gallon in South Carolina. That leaves more money in consumers’ pockets, which likely will lead to increased spending on vacations this summer and on consumer goods, Vitner said.
“There are more areas of the economy improving today than there were a year ago,” Vitner said. “The improvement is broader and probably more durable (than it was then).”
Maybe it is not as bad as it sounds.
South Carolina’s unemployment rate spiked back above 9 percent in May after 10 straight months of declines.
However, the uptick – to 9.1 percent in May from 8.8 percent in April – may not be as bad as it might seem because, in part, it is due to more people looking for work. Nearly 2,000 people entered the labor force in May in South Carolina, including college graduates and those looking for summer work.
But those would-be workers are jumping into the market at a time when finding work is getting a little harder as economic concerns begin to intensify, economists said.
“We were adding jobs at a stronger pace earlier this year,” said Mark Vitner, senior economist with Wells Fargo in Charlotte. “A lot of businesses have grown cautious.”
The European debt crisis has stoked fears that a recession overseas could lead to economic weakness in the United States. Also, unsettled federal health care laws, now before the U.S. Supreme Court, and tax breaks, set to expire at the end of the year, have employers in limbo.
However, the Federal Reserve could provide some help next week to prop up the economy.
“The economy’s slowing again,” Vitner said. But, so far, “it doesn’t look like it’s sliding into recession.”
Nationally, the jobless rate ticked up to 8.2 percent in May from 8.1 percent in April as 642,000 people joined the labor force.
In South Carolina, the number of unemployed people increased in May by 5,861 to 195,905. At the same time, the number of employed people decreased by 3,886 to 1,957,360.
Still, there were bright spots in the state report released Friday by the S.C. Department of Employment and Workforce.
The state gained 16,800 jobs in May, most in retail and professional services – each of which gained 4,700 jobs for the month. The leisure and hospitality industry also saw an increase of 3,700 jobs.
Employment fell slightly in only one category – manufacturing – even though it has gained 7,000 jobs since May 2011.
Construction activity also appears to be increasing, Vitner said. That industry added 1,400 jobs in May, though it is still down 1,700 jobs from a year ago.
Over the last year, the state has gained about 24,000 jobs. But that is only about half of the number lost during the worst recession in a lifetime, said Joey Von Nessen, research economist with the Moore School of Business at the University of South Carolina.
“We still have a long way to go,” he said. “We need our job growth to be more aggressive. … It’s a sluggish recovery.”
However, the state is setting itself up for job growth in future years, when economic development announcements – made over the past couple of years – start producing jobs, Von Nessen said.
“Sometimes, that takes a while,” he said. “It’s a future indicator rather than something that’s going to start tomorrow.”
There are pockets of growth in certain industries, Von Nessen said. But he expects the unemployment rate to hover around where it is now for the summer.
In general, the economy is stronger than it has been in a while despite the recent slowdown, Wells Fargo economist Vitner said.
Gas prices – soaring near $4 a gallon earlier this year – are falling, dipping on Friday to an average of $3.10 a gallon in South Carolina. That leaves more money in consumers’ pockets, which likely will lead to increased spending on vacations this summer and on consumer goods, Vitner said.
“There are more areas of the economy improving today than there were a year ago,” Vitner said. “The improvement is broader and probably more durable (than it was then).”
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