The bad SC jobs news should wake us up

According to the South Carolina Employment Security Commission, South Carolina’s statewide unemployment rate rose to 9.5% in December, compared to the national average of 7.2%. That number is bad enough on its own. However, looking at the complete set of numbers paints a picture it is difficult to be optimistic about. The numbers are telling of seriousness of the situation and the weaknesses that could lead to more unemployment.

When the lob losses are broken down by types of jobs, it seems the so called “new economy” jobs are holding steady in areas such as information, education and health services and government. However, the traditionally higher paying “working man and woman” jobs in manufacturing and construction continue their months long decline.

While some economists claimed a few years ago that shifting away from making and building things to service based jobs was economic evolution, the numbers suggest it might be the opposite. People who made their livings in other areas other then services used their wages to pay for services rendered.

Take for example a man or woman who was a welder and made a decent wage. They would use the money that they had left over after the essentials to pay for things like going out to dinner, going to the beach for vacation, hiring a lawyer to write a will and so forth. The business that they worked for would hire business services such as accountants or people to ship their products.

The December numbers show that decline of manufacturing and construction jobs is beginning to hit the service industries. Jobs in leisure and hospitality, professional and business services, and transportation all declined. The essential services mentioned above held their ground, but for how long? As job losses grow, less people will be able to pay for even for essential services that most used to take for granted. An unemployed worker without health insurance will be less likely to go to the doctor, and without his tax dollars, education and government will have less money to operate.

The numbers also show there are two very different South Carolinas at this time. One South Carolina is in depression. The five counties with the highest rates of unemployment are Allendale at 19.7%, Marion at 19.0%, Chester at 17.3%, Marlboro at 16.9%., and Barnwell at 15.89%. Let the size of those numbers sink in. Those are depression like numbers. If you factor in independent contractors out of work, people who have given up looking for work, those numbers could hit around 30%. Sociologists and economists have argued since the Great Depression that numbers at that level for a sustained time could lead to social chaos.

The numbers are recession level, but much better in places like Lexington at 6.5%, Charleston at 6.9%, Beaufort at 7.0%, Saluda at 7.8%, and Greenville at 7.6%. Those numbers are not good, but they are not depression level and are not numbers that suggest a full collapse at any moment. However, those counties do have a large number of essential services jobs, and again, if things continue as they are, it will be no shock of one of more of those areas hits double digits.

What is perhaps more interesting, or disturbing, take your pick, is how middle counties like Anderson, Greenwood and Florence are doing. Those three counties over the years did not rely heavily upon essential services but had investments and jobs from companies like Michelin (Anderson), Fuji, (Greenwood), and Honda (Florence). Those counties had remarkable growth in the past decade or so. However, they are suffering heavy job loses now. Greenwood hit the double digits with unemployment spiking to 11.4% from November’s 9.3%. Anderson hit 9.6% from November’s 8.0%. Florence hit 9.1% from November’s 8.0%.

Across the board, things look grim. Frankly, thing are grim. There is simply no way to honestly spin the numbers to make things look good. There, is however, a potential silver lining. Perhaps the harsh reality of this crisis will wake up the people of South Carolina and the United States to turn off the American Idol and tune in to what their elected leaders are up to. South Carolina is in trouble. We don’t need a Governor bringing pigs to the State House or a Speaker hellbent to let his ego punish those who dare question him. We don’t need politicians finding pork barrel projects for those who just happened to give money to their campaigns. (Herbert Hoover proved in the early 1930s that government can not tax and spend its way out such a crisis. ) We do not need paid political hacks carrying out narrow agendas or plotting the next campaign.

What we do need is leadership. The kind of leadership that is honest and frank and open. We need leaders who respect one another and work with one another and put the people, not their egos, their financial backers or their next election first. We the people also have to show some leadership. Instead of worrying about what entertains us or what can “get us paid,” we need to concern ourselves with paying attention to what is going on in our governments. There has be a sense of responsibility among us. We have to look out for ourselves and one another, and keep a careful eye on those who shape the policies that determine a big part of our lives.

Not doing that got South Carolina to this point. While there is sympathy for those out of work and suffering, there is more frustration in that so many for so long have just tuned out the actions of those who have so much effect upon us all. The above numbers are the people's wake up call.

For our part, Voting under the Influence will, in the next few days, outline a plan for economic renewal for South Carolina and the United States. Who knows who will read and take our plan into consideration, but at least we won’t be saying “woe is me,” or sitting around saying “if only we had this or that power to do things.” VUI is going to do what it can: offer a plan to be talked about and considered.