CNN
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The pandemic’s impact on South Carolina’s economic system was palpable, however the fallout on employment didn’t minimize as deep or final so long as it did nationally.
The Palmetto State entered 2024 from a place of energy: Key industries are booming, and the celebs are aligning for the Southeastern state to capitalize on long-term migration patterns.
Nonetheless, there are some very actual obstacles for that progress to proceed, particularly getting older demographics, employee shortages and excessive rates of interest.
Right here’s a snapshot of South Carolina’s economic system because the state performs host to the most recent 2024 presidential major on Saturday.
In April 2020, unemployment spiked in South Carolina from 3.1% to 11.7%, the very best seen within the state for the reason that Nice Recession, when the jobless fee topped out at 12.1% in December 2009, Bureau of Labor Statistics knowledge exhibits.
The US, then again, noticed its unemployment fee soar to 14.8% in April 2020.
By the tip of 2020, South Carolina’s jobless fee was beneath 5%, whereas it took till September 2021 for the US to achieve that degree. As of December, the state’s unemployment fee was 3%.
“South Carolina opened up sooner than many different states did, so companies have been in a position to rehire the workers they needed to lay off, and extra companies have been in a position to keep away from going bankrupt,” Joseph Von Nessen, analysis economist on the College of South Carolina’s Darla Moore Faculty of Enterprise, advised CNN.
Additionally serving to to rev up the financial momentum was South Carolina’s positioning as a “drive-to state” and never a “fly-to state,” Von Nessen mentioned.
“That meant our tourism economic system, which is a major factor of the state, wasn’t as adversely affected because the tourism industries in another states,” he mentioned.
But it surely’s not a narrative solely about restoration, he added. It’s additionally about key trade sectors hitting full stride.
The state’s financial progress, which clocked in at a strong 5.7% fee within the third quarter of final yr, was pushed largely by two sectors: superior manufacturing (automotive, tire and aerospace industries); retail and distribution (warehousing, ports and rail).
These trade clusters mixed have an estimated economic impact of $48.3 billion, having expanded greater than 25% since 2010, and make use of upward of 150,000 individuals, in response to a examine College of South Carolina carried out in partnership with the SC Council on Competitiveness.
There’s a flipside to the robust financial and employment progress: South Carolina, like many US states, is operating up towards a scarcity of staff.
As of December 2023, there have been almost 2.3 jobs in South Carolina for each resident jobseeker, in response to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey knowledge. Nationally, that ratio was 1.4.
“We do have very robust inhabitants progress, however a big proportion of that progress is coming from individuals over the age of 55, and that exacerbates the workforce challenges that the state is dealing with,” Von Nessen mentioned.
South Carolina, nonetheless, is approaching this strategically, he added, nodding to the state’s huge community of technical schools and workforce growth applications.
Midlands Technical School in West Columbia, South Carolina, is seeing the results of the demand-supply imbalance first-hand — in addition to generational and technological shifts —and is providing lessons in additional modalities than ever earlier than and is seeing extra apprenticeship alternatives than ever earlier than, Provost Barrie Kirk advised CNN.
“We’re seeing extra college students considering a few of our shorter-term workforce applications that permit them to acquire the talents and data they should step into these high-demand jobs,” she mentioned.
Greater than three-quarters of the faculty’s college students are enrolled in technical and expert trades applications for jobs in industries equivalent to superior manufacturing, well being care, info know-how and expert trades, she mentioned. She mentioned additionally that the faculty has seen an increase within the variety of girls considering these and different fields.
The industries which have been robust within the short-run are additionally prone to be drivers for the long-run, Von Nessen mentioned.
“If we glance over the following 20 years, between now and 2040, just about each forecasting entity (together with the US Census) persistently exhibits that the southeastern United States goes to see extra inhabitants good points than every other area of the nation,” he mentioned. “And, in fact, South Carolina is within the coronary heart of the Southeast.”
The state is ideally located, geographically, for corporations to import items and channel them all through the Southeast.
“You may attain about twice as many individuals inside an 8-hour drive from South Carolina as you’ll be able to from Florida,” he mentioned.
Persons are shifting to South Carolina in droves. It was the fastest-growing state final yr, increasing by 1.7%, in response to the Census Bureau. It is residence to five.4 million residents, up greater than 255,000 since April 2020, and whereas it’s a massive draw for retirees, it’s additionally attracting youthful individuals searching for work alternatives and decrease price of dwelling.
“The housing market and the manufacturing trade, notably in South Carolina, noticed a serious enhance in demand,” Von Nessen mentioned. “Then the pendulum started to swing the opposite approach.”
To counter the rise in inflation, the US Federal Reserve rapidly ratcheted up rates of interest to curb demand, hitting rate-sensitive industries like housing the toughest. South Carolina residence sale exercise fell by double-digits in 2022 however has since began to stabilize, he mentioned.
Whereas the expectations are for the stabilization to proceed in 2024 — particularly if rates of interest have been to ease — the state will nonetheless must deal with a listing scarcity that’s resulted from a decade-long interval of underbuilding.
The state’s inhabitants progress is fueling demand in industries equivalent to well being care. A number of new hospitals plan to open in coming years within the Myrtle Seaside space, which has been named the fastest-growing place within the US for 3 years in a row by US Information and World Report. Well being programs are additionally increasing their outpatient providers, together with surgical facilities, imaging and laboratory services, pressing care places and specialty practices, across the state.
“We’re simply treating so many extra sufferers that we don’t have capability,” mentioned Thornton Kirby, CEO of the South Carolina Hospital Affiliation. “Hospitals try to place services the place all the brand new growth is being deliberate.”
These new places require employees, each scientific and help, which is a problem in South Carolina’s tight labor market.
Prisma Well being, the state’s largest well being care group with almost 30,000 workers and greater than 1.5 million sufferers, has centered on strengthening its relationships with faculties much more over the previous 5 years to bolster its pipeline. It begins introducing younger individuals to careers in well being care as early as elementary faculty, mentioned Malcolm Isley, Prisma’s chief technique officer. And it really works with excessive faculties, technical schools and universities to coach college students for jobs in medical billing, respiratory remedy, imaging, nursing and plenty of different well being care fields.
“We’ve bought all types of jobs,” Isley mentioned. “We wish to be sure that individuals say, ‘Hey, hear, well being care is a superb sector to be in’.”
Prisma is investing $5 million in a pilot nursing recruitment program at 5 universities and technical schools within the state and offered a $1.5 million present to Greenville Technical School, which is setting up the Prisma Well being Middle for Well being and Life Sciences.
Different industries are additionally discovering it robust to rent, forcing them to boost wages.
Kent Worldwide, the biggest home provider of bicycles to Walmart, now pays workers at its Manning, South Carolina, manufacturing unit a beginning wage of greater than $15 an hour, up from $13 early within the pandemic. It additionally offers good well being care advantages and an air-conditioned constructing, mentioned CEO Arnold Kamler, whose grandfather began the enterprise in 1906 in New York Metropolis.
“If something, South Carolina created too many roles,” he laughed. “We needed to maintain rising the beginning wage to be aggressive with the opposite corporations within the space.”
Kent lately added 90 workers after touchdown a cope with Walmart final yr to provide the brand new Ozark Path mannequin, which now accounts for almost the entire roughly 225,000 bikes it manufactures yearly. Its workforce had shrunk to 35 individuals after gross sales slowed in 2022.
Early within the Covid-19 pandemic, when bikes have been a scorching commodity, Kent employed about 150 individuals and was churning out round 250,000 bikes yearly.
Kamler opened the factory a decade in the past since he preferred the placement and workforce higher than ones he noticed in Georgia and Florida. Then-Gov. Nikki Haley, who’s operating for the 2024 Republican presidential nomination, sealed the deal by providing to foot the invoice for operating a pure fuel line to the constructing.
South Carolina residents really feel fairly glum about each the state and nationwide economic system, in addition to their private funds, in response to a Winthrop College ballot from Might 2023.
Some 46% of respondents mentioned the economic system of South Carolina was worse than a yr in the past, whereas solely 16% mentioned it was higher. One other 29% mentioned it was the identical. Amongst Republicans, 56% of respondents mentioned it was worse, and solely 10% mentioned it was higher.
As for the nationwide economic system, 59% of respondents mentioned it was worse than a yr in the past, and 16% mentioned it was higher. Some 20% mentioned it was the identical. A a lot bigger share of Republicans — 79% — mentioned the nationwide economic system was worse than a yr in the past, and solely 8% mentioned it was higher.
Relating to their private funds, 44% of respondents mentioned their scenario was worse than a yr in the past, whereas 20% mentioned it was higher. A 3rd mentioned it was the identical. Greater than half of Republicans felt they have been worse off, and solely 14% mentioned they have been in a greater place.
Although inflation has moderated since final spring and consumer sentiment has improved, costs stay excessive, mentioned Scott Huffmon, director of Winthrop’s Middle for Public Opinion & Coverage Analysis.
“Your common South Carolinian continues to be involved about inflation — the price of milk, the price of eggs, and all of these issues,” he mentioned.
Palmetto State residents have extra religion in former President Donald Trump enhancing their monetary conditions than Haley. Some 73% of possible Republican voters mentioned they’d be financially higher off if Trump wins the presidency in 2024, in response to a CBS Information/YouGov survey earlier this month. One other 9% mentioned they’d be worse off, whereas 18% mentioned Trump’s insurance policies would depart them within the about the identical place.
Nonetheless, solely a couple of third of possible Republican voters felt they’d be higher off if Haley wins, whereas 47% mentioned their scenario would stay about the identical and 21% mentioned they’d be worse off, the survey discovered.