Has SC's Economy Finally Turned the Corner ?

SC's Unemployment Rate Drops by .3% In July ...... Finally !

After about 21 months of ecconomic stagnation and recession, there are real signs that we may have finally reached the end of the slowdown, and that a small light at the end of the tunnel is finally here. While the national unemployment rate dropped just a speck from 9.5% to 9.4%, the state unemployment rate dropped a little bit faster, from 12.1% to 11.8% . It was enough to allow South Carolina to leapfrog two other states, and move up to 45th in employment. Good news all around, and just like we had predicted last fall....

Like most occasions when the economic engine finally restarts, the numbers are not all that great - mixed, but not great. Being peak tourist season, there have been slight gains in the hospitality and tourism industry. But also, a significant number of unemployed have stopped searching for jobs, which assisted in the rate dropping.. So, while there is cautious optimism, we aren't out of the woods. Those tourism jobs will start dropping again with the onset of Fall, but many of the 31,000 government workers who had the Summer off are now going back to school. As far as manufacturing and retail, we don't see a ton of improvement through the end of the year. But, come January and into the Spring, employers will finally have the confidence to start hiring again. Almost there, folks.....

Looking forward a bit, it'll be interesting to see the political aspects of the impending recovery. The claims nationally and in South Carolina will be inverse of each other. Whether or not it actually did have an effect, the Obama Administration will claim that the Economic Stimulus has worked... Here, the Democrats will point to our low ranking, and probably pull out the unemployment rate from when Mark Sanford first took office... For the Republicans, the challenge will be to punch holes in the Democrats taking credit for the turnaround. In South Carolina, even though Republicans hold majorities in both houses and the Governor's Mansion, thye have been there for a long time now, and the track record of economic development under their leadership is less than stellar. Obama just took the White House, so the case that he needs more time is easier than for us to say the we need more time. A candidate like Lt. Gov. candidate Ken Ard, someone not of Columbia, but still with a record of bringing in companies, may actually have an easier time....

Lastly, I think I've discovered the one indicator that determines our economic path. Myself.. You see, I was out of work in 2007, and things were OK... I went back to work in early 2008, and over the 18 months I worked, the economy of the US and South Carolina went down the tubes. I quit my job, and now, things finally begin to turn around. I'm left with only one conclusion ..... that I take up about 4% of the entire US workforce simply by working. I had no idea I worked that hard. So, for the future of millions of Americans, I have decided to stay at home, and do nothing.... But, if you could send a check here and there, it would make things easier...

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