S.C. jobless rate inches up in April

A seasonal hiring spree in South Carolina's leisure and hospitality industry helped offset another decline in construction employment in April, holding the state's unemployment rate to a small increase during the month.

South Carolina's unemployment rate climbed to 5.9 percent from 5.7 percent in March, the S.C. Employment Security Commission said Friday. Over the same period, the national unemployment rate fell 0.1 percentage point to 5 percent.

South Carolina's rate ranked as the seventh-highest in the nation, up from 12th-highest in March. Wyoming, at 2.6 percent, had the lowest percentage of people seeking work, while Michigan, at 7.2 percent, had the highest.

Though it added more jobs in April than any other sector in the state, the tourism-related industry could see its growth hampered by increasing gas prices, the commission warned. Also, a declining construction industry could mean more people will lose their jobs in the coming months.

"The state's economy faces a tough road over the next few months," said Roosevelt T. Halley, executive director of the S.C. Employment Security Commission, in a statement.

Mark Vitner, a senior economist for Wachovia Corp. in Charlotte, said he doubts that high gas prices alone will hurt the Charleston area's tourism work force.

Despite gas moving closer to $4 a gallon, Vitner said, the indicators suggest that people still will take vacations this year, although they may curb their spending in other areas to compensate.

"If they spend more on gas, they may spend less when they get there," Vitner said.

Restaurants could feel the pinch, he said, but people generally book their trips far enough in advance that they don't know what the fuel prices will be when it comes time to travel.

The state's construction industry is another matter, Vitner said. Until now, despite the housing slowdown, the sector had enough work in the pipeline to support the work force. Now that work is beginning to dry up, he said.

At 2.1 million, the state's labor force was nearly unchanged in April. The number of unemployed grew by 3,300 to 125,500, a 2.7 percent increase.

The state's non-farm job total grew by 14,400 to 1.9 million, largely due to the 8,800 leisure and hospitality jobs added. The professional and business services sector added 3,500 jobs and financial services added 1,500.

The educational and health services, retail, information and government sectors added a combined 1,500 jobs. Manufacturing also posted a rare but small gain of 200 jobs during April.

On the downside, the construction industry lost 2,400 jobs, the sixth straight month the building industry has declined. Construction jobs are down 7,300 from a year ago, the commission said.

Locally, the April unemployment rate in Charleston County was 3.9 percent, tied for lowest in the state with Beaufort and Lexington counties. Dorchester County's rate was 4.5 percent and Berkeley County's was 5 percent.

Reach Peter Hull at 937-5594 or phull@postandcourier.com.