Jobless rate hits 8%, highest in nearly 25 years

'World of hurt'

The Post and Courier
Saturday, November 22, 2008


photo

The Post and Courier

Newly unemployed Chad Birnbaum, an information technology professional from Wando, uses a computer Thursday at the S.C. Employment Security Commission.

photo

The Post and Courier

Newly unemployed John Boyd of Mount Pleasant looks through the want ads as he waits in the unemployment line at the S.C. Employment Security Commission.

South Carolina looked like a pretty good choice to computer network engineer Chad Birnbaum. Armed with a degree from Michigan State University and solid industry credentials, he landed a job in the area that paid $60,000 and offered full benefits.

At 25, life was good.

Then, as the financial meltdown began to wind its way through the local economy, Birnbaum was laid off by Welded Tube Berkeley.

"Things are getting ugly. I'm in a world of hurt," he said this week after filling out forms for jobless benefits at the Employment Security Commission office on Lockwood Boulevard.

Birnbaum is among the mounting number of workers who are seeking unemployment checks to tide them over until new work comes along. On Friday, the state commission said South Carolina's jobless rate jumped sharply in October to 8 percent, the highest point in nearly 25 years.

"This increase appears to be consistent with the overall worsening of the nation's economy as a result of the turmoil in the housing and financial markets," said Ted Halley, the commission's executive director.

The number of unemployed workers rose by 16,549 to 173,467. The number of jobs showed little change over the month, registering a modest increase of 4,100. For the Charleston region, the rate jumped to 6.5 percent in October — up sharply from 6 percent in September and from 4.8 percent in October 2007.

While the state's retail and construction sectors combined to add an unexpected 3,100 positions, "these gains are likely temporary as these industries are expected to mirror national trends over the next few months and fall below normal seasonal levels," the employment commission said.

The state's jobless rate was 7.3 percent in September.

The October rate was the highest for South Carolina since December 1983 and the fourth-highest in the nation. The Palmetto State ranked behind just Michigan (9.3 percent), Rhode Island (9.3 percent) and California (8.2 percent), according to the U.S. Bureau of Labor Statistics.

Given that the national economy isn't expected to recover soon, South Carolina's rate could easily climb higher in future months, predicted Don Schunk, research economist at Coastal Carolina University.

"Here we are in the earlier stages of a recession and unemployment is already at a 25-year high in South Carolina," he said, adding that even holiday retail hiring is weak this year.

Claims calls

The S.C. Employment Security Commission has a new system for those placing weekly calls into the agency to keep their unemployment claims current.

Starting Dec. 7, claimants whose Social Security numbers end in even numbers — a 0, 2, 4, 6 or 8 — should call the agency on Sundays. Those with odd-numbered SSNs should call on Mondays.

The goal is to prevent the agency's telephone lines from jamming, which has happened recently after a sharp increase in call volume.

Off the job

The unemployment rate jumped sharply in the state's four major job centers in October. Charleston's was the lowest for the month.

Metro Oct. Sept. Oct. 08 08 07

Charleston 6.5% 6.0% 4.8%

Columbia 6.9% 6.4% 5.3%

Florence 8.7% 8.0% 6.4%

Greenville 6.9% 6.2% 5.4%

A global recession would likely hurt jobs within the state that are tied to exports, Schunk said.

"Then look at what all that means for tax revenue, and we have state and local governments that will likely be forced to lay off workers," he said.

Experts said declines on Wall Street also were having an impact as some retirees seek to return to work after their nest eggs lost value, making the job market that much tighter, College of Charleston economist Frank Hefner said.

"People who could afford not to work are now back in the labor force," Hefner said.

South Carolina financier and philanthropist Darla Moore of the Palmetto Institute said the 25-year unemployment rate high didn't surprise her.

"I think it will continue through 2009," Moore said Friday during an agriculture conference in Charleston. "As long as the financial crisis is with us, I think we're in for some extremely difficult few years."

Moore said South Carolina would likely bear the brunt of the national slowdown more than other states because of its reliance on manufacturing and the low wages that many residents earn from unskilled jobs.

At the state's employment center in downtown Charleston, a bank of computers where people applied for jobless benefits was full Thursday.

Delivery truck driver Travis Coaxum, 25, a Wando High School graduate, said he was let go three months ago when he refused to take a pay cut from a tire company. He is now homeless and has lost his car, a 1999 Buick. He now lives with a relative for the time being while his two children, ages 4 and 6, live with their mother.

"By the skin of our teeth we take care of the kids. It's depressing," he said.

Coaxum said he works odd jobs as they come available at a temporary employment agency, but even that didn't pan out for him this week.

"It's rough. Very rough. The economy is unbelievable," he said. "I don't understand why it's so hard to find a job. I don't have a (criminal) record. Don't have any problems and I'm still catching the devil. It's one of those kind of deals where you just try to stay motivated and keep going. It's not easy at all," he said.

John Boyd, 34, recently moved to the area from Florida to work for a landscaping company but was let go last week.

"There's not much call for that now with the economy the way it is," Boyd said of landscaping services. "It's really bad. This was my last option. I didn't want to come here and file for unemployment."

The Contreras family will be tightening its belt because Rosaura Contreras learned this week that her job as a "copper picker" at Charleston Mill Service was gone. She held a letter that informed her that her temporary layoff was now permanent.

"Sad," she said.

Daughter Carla said her mother's job loss means cutting back on movies and trips to the skating rink.

"I can't get a lot of things any more," she said.

Regina Seabrook, 24, a single mother, said she lost her job as a waitress three weeks ago. She doesn't want to go back to working tables, though she hopes to find another job in customer service.

"Not a lot of people coming out. Not tipping like they usually do," Seabrook said.

Katy Stech, Allison Bird and the Associated Press contributed to this report. Reach Prentiss Findlay at pfindlay@postandcourier.com or 937-5711.

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Comments

MarkSCCOT (anonymous) says...

My simple solution.....

for every US Citizen unemployed.......deport one illegal immigrant working here.

November 22, 2008 at 11:07 a.m. ( | suggest removal )

Smart_Enough_2_Know_Better (anonymous) says...

The situation sucks for everyone in this article, but a little common sense earlier on could have helped a couple people:

1. From an employment perspective, South Carolina should never have looked like a "pretty good pick" for a computer network engineer. At the top: San Francisco, DC, Austin, Boston, NYC, Austin, etc. Basically any metro area with a large number of TECH jobs would at least give you options. Unless you're planning a career in tourism or food service, picking Charleston is lousy career move.

2. Never turn down a pay cut when layoffs are inevitable- especially if you have children to feed. While there is a time and a place to take stand for yourself and what you think you are worth, doing it doesn't (usually) put food on the table. Take the pay cut and look around in your free time until you find something that you feel more truly represents your value.

I feel for these folks, but I also hope they realize and learn from their mistakes.

November 22, 2008 at 11:24 a.m. ( | suggest removal )

guidedbystewart (anonymous) says...

Our State government has done little to nothing to rectify the jobless rate, and now that the economy is taking a downturn, SC's economy is not looking so good. Our neighbor to the north, NC, will fair much better with the exception of Charlotte being a banking center, because of the quality of it's secondary education and the investment it has made to bring well paying high tech jobs to it's state. The rural areas of this State already has been suffering will only get worse, continue it's path to third world poverty, and this will soon carry on to the metro areas. At least I have a stable job:.

November 22, 2008 at 11:44 a.m. ( | suggest removal )

exorcist_pencocky4u (anonymous) says...

Posted by guidedbystewart on November 22, 2008 at 11:44 a.m. (Suggest removal)

Our State government has done little to nothing to rectify the jobless rate, and now that the economy is taking a downturn, SC's economy is not looking so good. Our neighbor to the north, NC, will fair much better with the exception of Charlotte being a banking center, because of the quality of it's secondary education and the investment it has made to bring well paying high tech jobs to it's state. The rural areas of this State already has been suffering will only get worse, continue it's path to third world poverty, and this will soon carry on to the metro areas. At least I have a stable job:.

â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'

A Trash Collector?????

November 22, 2008 at 12:35 p.m. ( | suggest removal )

eatmorecollards (anonymous) says...

I know of several employers in South Carolina that are always hiring. Army, Navy, Air Force, Marines

November 22, 2008 at 12:42 p.m. ( | suggest removal )

carolinadude (anonymous) says...

Mark Scott:
You're totally correct that mass deportation will improve our employement rate. It's a well know fact that illegals are displacing large numbers of our legal unskilled labor force in addition to being a huge drain upon our social services. In addition we truly need to revoke business licenses for employers who hire illegals! When will we wake up!!
Preach on Brother Scott!!

November 22, 2008 at 12:51 p.m. ( | suggest removal )

guidedbystewart (anonymous) says...

exorcist,
Is that all you can come up with? You are little more than a troll, and a not a clever one at that.
What do you do? Actually I am a GIS Analyst and I am paid fairly well at. Have you heard it? Probably not, I would try to explain it but it would be futile being that it is beyond your 3rd grade scope of comprehension.

November 22, 2008 at 12:51 p.m. ( | suggest removal )

Tides (anonymous) says...

What is wrong with these politicians? It's a no brainer that if you create jobs in the construction sector, everybody else benefits.

Why isn't the VA Hospital being replaced in Charleston? That building is so old and been through dozens of renovations. It's long overdue to be torn down after a new one is built.

Why is it our government always waits till so many are suffering to start doing anything when all the indicators are there beforehand that things are about to go bad?

SC State Leaders like McConnell are just a bag of wind.

November 22, 2008 at 12:52 p.m. ( | suggest removal )

exorcist_pencocky4u (anonymous) says...

Posted by guidedbystewart on November 22, 2008 at 12:51 p.m. (Suggest removal)

exorcist,
Is that all you can come up with? You are little more than a troll, and a not a clever one at that.
What do you do? Actually I am a GIS Analyst and I am paid fairly well at. Have you heard it? Probably not, I would try to explain it but it would be futile being that it is beyond your 3rd grade scope of comprehension.

â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'

So what you are saying is that you are a over trained, over paid, idiot, devoid of any usable human qualities. The type that never lasts in my company and I would seldom hire. Though, as long as you are happy in your job and can all ways tell were you are for as long as they need you, enjoy.

November 22, 2008 at 1:49 p.m. ( | suggest removal )

exorcist_pencocky4u (anonymous) says...

Good point, MarkSCCOT.

November 22, 2008 at 2:41 p.m. ( | suggest removal )

exorcist_pencocky4u (anonymous) says...

Posted by Tides on November 22, 2008 at 12:52 p.m. (Suggest removal)

What is wrong with these politicians? It's a no brainer that if you create jobs in the construction sector, everybody else benefits.

Why isn't the VA Hospital being replaced in Charleston? That building is so old and been through dozens of renovations. It's long overdue to be torn down after a new one is built.

Why is it our government always waits till so many are suffering to start doing anything when all the indicators are there beforehand that things are about to go bad?

SC State Leaders like McConnell are just a bag of wind.

â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'â-'

Tides - The VA Hospital is being replaced, to a more centrally located area, not in the City of Charleston. I agree with you that it needs to be torn down and hopefully soon, the bulldozers will be there.

November 22, 2008 at 3:35 p.m. ( | suggest removal )

yird (anonymous) says...

The October rate was the highest for South Carolina since December 1983 and the fourth-highest in the nation. The Palmetto State ranked behind just Michigan (9.3 percent), Rhode Island (9.3 percent) and California (8.2 percent), according to the U.S. Bureau of Labor Statistics.
===========================================================
guidedbystewart; JimIslander, GetSerious; and a few other malcontents are always denigrating South Carolina and sometimes other southern states.

Mr.GIS genius, analyze this. Last time I checked RI and MI were northern states and Ca was still on the left coast.

Using your "logic" their residents must be even dumber than us SC hayseeds?

It's too bad that people with all these computer related skills have no marketable skills.

Welders, electricians, plumbers, and people who work with their hands as well as their brains are usually able to find employment.

You can analyze a problem till Hell freezes over but somebody still has to have the ability to "lay hands" on it and get it fixed..

November 22, 2008 at 4:38 p.m. ( | suggest removal )

yird (anonymous) says...

JimIslander; That's the way Boyo keep getting riled up.

Incidentally, we who served in the military 24/7/365 earned what we get, unlike you parasites who sit on your lazy butts waiting for the next freebie paid for by those who actually worked for a living.

It must be tough for you trying to get by on SSI, but being mentally challenged, you probably do not have many wants.

Some fuzzy slippers to wear going to the mail box for your checks, a new Teddy bear now and then and maybe some Leggos for when your feeling real industrious!!

November 22, 2008 at 5:30 p.m. ( | suggest removal )

guidedbystewart (anonymous) says...

yird,
I do not know about you, but I am native of SC. A native that is sick and tired of being last in about everything positive, and a native that is sick and tired of being first in about everything negative. Out local government, both Democrat and Republican, and has been worthless, doing little to make our progress out of the abyss of mediocrity, while other southern States have progressed.
Yes, there are States that are struggling in other ways, but I don't live there and they have other reasons for their troubles.

Truth is, I wonder from these post if many of you military retirees really give a damn about this State at all? There is more to a State than just low taxes and good weather, but it seems that it is all that many of you seem to care about.

November 22, 2008 at 6:58 p.m. ( | suggest removal )

dawhetsell (anonymous) says...

Where is the money coming from that you think will start jobs? You think if they would loan printed funny money from our goverment that it would be loaned to the people that did not pay back the last loans. This is what caused this problem. For the last 20 years the jobs were based on spending on borrowed money (CREDIT ). All the factories machinery was moved to China or elsewhere because Bill Clinton and Congress TAXED and REGULATED businesses to leave the country. The rusted out buildings are still here. The only way jobs will come back is to DEREGULATE and CUT TAXES on businesses,put high import taxes on imports to force the companies back. Thats not going to happen with Omama. The feds are going to print so much money and the dollar will become worthless and everyone will be EQUAL like Obama wants. they will all be BROKE.

November 22, 2008 at 6:58 p.m. ( | suggest removal )

GermanyXO (anonymous) says...

Hey Gang, can we just agree to disagree and exercise our freedom of speech without firing personal attacks on each other? If our current U.S. President and his advisors came up with $700 billion dollars to save our banks, then we all know now that our nation's capitol has long had the funds to create jobs not only here in SC, but in other states as well.

If you were to ask me how the $700 billion should have been divided, then I would have recommended it be divided equally among all 50 states. About every major banking operation contributed to this meltdown; why are our nation's top economic advisors paying the same banks to clean up the mess? AIG reported that initial bailout money it received won't be enough to keep its head above water. Does anyone know whom AIG is funneling our hard-earned tax dollars to? I wouldn't be surprised if it's a hedge fund that lists several top (millionaire) lawmakers in our U.S. Congress as shareholders. Maybe that's why so many supported the entire $700 billion dollar package?

Has anyone read the bill and found where it specifies how we small business owners, middle and lower income taxpayers will benefit? SC Congressmen should address this and many other concerns listed by others on this blog.

November 22, 2008 at 8:08 p.m. ( | suggest removal )

yird (anonymous) says...

guidedbystewart; True I'm not a "native" but unless your over 44 years old I've been a resident here longer than you've been alive.

Never have I been guilty of trying to change SC to mirror other states.

I am not retired military (only did ten years) but I have seen the decline of my state increase as more folks moved here changing the demographic of the state to represent something it never was.

For example,at one time SC law mandated a balanced budget and the state did not have a debt load.
I have no idea what the current law is but I imagine it has changed also.

High taxes do not equal better education. We spend a fortune on bricks and mortar instead of academic excellence.

Look at you property tax bill. The largest portion of it is allocated to retiring school bond debt(which never retires) and school operating expenses.

I don't have the answers to the problems that plague our state but knocking and belittling it surly is not one.
=========================================================
JimIslander;
I don't have to try and bring you down.

You do a good enough job yourself.

Go play with your Barbie dolls.

November 22, 2008 at 8:39 p.m. ( | suggest removal )

mrjm (anonymous) says...

This is why we are last at everything positive: blame the government, blame the politicians, blame each other, etc. All this public space used just to cast blame.

How about post on here a job opening you might know about? Maybe you have some words of wisdom that might help the people in the article who are looking for an honest living to feed their families?

Offer a hand to the people who deserve our help every now and then - the ones who are responsible but, through no fault of their own, have been laid off.

It could happen to you or your loved ones. Would you really want to read these comments when that happens?

Stop fighting amongst yourselves and look at the real message of the article - these people are hurting and they are working to resolve it...but they could use whatever help they can get.

If you don't have any answers to the big picture problem (who does?) then maybe you can help by suggesting help for one person or one family...

November 23, 2008 at 11:20 a.m. ( | suggest removal )

PalmettoDP (anonymous) says...

The $700 billion should have been spent on infrastructure, instead of being thrown into the black hole of finance. That would be, of course, if we actually had that much money. Since we don't, it's going to either be borrowed or printed.

Maybe Obama will have a change of heart and change his tax plan. I'm not holding my breath, though....

November 23, 2008 at 4:13 p.m. ( | suggest removal )

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