2005 Year-End Review 

 

South Carolina’s economy continues to expand, posting healthy job gains over the year.

The state’s nonagricultural job count advanced 1.5 percent to 1.86 million in 2005, adding 27,400 jobs. The service-providing sector grew by 31,000 jobs. All industries in this sector added jobs over the year. Professional and business services -- occupations ranging from lawyers to computer programmers – expanded by 8,600 jobs. Within this industry, employment services increased by 3,400. This is a positive sign for a recovering economy. Economists watch activity in temporary help services to help determine the overall health of the economy, as companies tend to hire temporary workers before hiring new full-time employees or rehiring laid-off workers. Trade, transportation and utilities rose 4,500, primarily in wholesale trade (+2,400). Education and health services added 4,100 jobs, with gains centered in health care and social assistance (+4,700). Financial activities grew by 4,000, mostly in finance and insurance (+2,100). Government rose by 3,600, with local government accounting for all of the gain (+5,000). Leisure and hospitality added 1,500 jobs, on the strength of accommodation and food services (+2,000). Information services -- occupations ranging from publishing to Internet services – increased by 200 jobs over the year.

The goods-producing sector lost 3,600 jobs. Manufacturers cut 6,000 jobs from their payrolls. Nondurable goods fell by 7,700, with losses mounting in textile mills (-5,800). Offsetting this loss was Durable goods, up 1,600. Construction expanded by 2,700, on the strength of specialty trade contractors (+2,500).

Of the state’s eight MSAs, five experienced job growth over the year. The Columbia MSA grew by 4,600, primarily in professional and business services (+1,500). The Charleston MSA expanded by 4,500 jobs, led by growth in financial activities (+1,300), and trade, transportation and utilities (+1,000). Myrtle Beach MSA added 4,100 jobs, primarily in government (+1,000), and leisure and hospitality (+1,000). Other MSAs experiencing growth were Greenville (+1,800) and Sumter (+400). The Florence MSA shed 2,900 jobs, primarily in financial activities (-800). The Spartanburg MSA lost 2,200 jobs, with losses centered in manufacturing (-1,300). The Anderson MSA declined by 1,000 jobs, primarily in trade, transportation and utilities (-600). 

South Carolina’s unemployment rate for 2005 tied Alaska for the third highest at 6.8 percent, trailing Mississippi (7.9%), Louisiana (7.1%). Annual average unemployment rates decreased from 2004 to 2005 in 39 states and the District of Columbia, rose in 9 states, and remained unchanged in 2 states. Nationally, the unemployment rate was 5.1 percent in 2005. In South Carolina, the jobless rate held steady at 6.8%.

Over the year, the unemployment rate fell in 24 of the 46 counties. The largest decline occurred in Marlboro County, down 1.5 percentage points to 11.7 percent. The jobless rate rose in 20 counties, with the biggest gain occurring in Edgefield County, up 1.5 percentage points to 7.5 percent. Two counties held steady over the year.

Six counties averaged double-digit unemployment rates, led by Marion County at 13.8 percent. Conversely, thirteen counties averaged unemployment rates below 6.8 percent. Beaufort County had the state’s lowest unemployment rate, at 4.5 percent.

The highest MSA annual average unemployment rate was recorded by Florence (9.1%), followed by Sumter (8.8%), Spartanburg (7.7%), Anderson (7.5%), Greenville (6.0%), Columbia (5.8%), Myrtle Beach (5.5%), and Charleston (5.4%).  

In 2005, the South Carolina Department of Commerce assisted with the expansion or location of 137 firms creating 12,370 jobs. Those companies invested $2.66 billion in the state. In 2005, Commerce reports that the projected average wage for Commerce-assisted job creation was $39,283 up 13.0 percent from 2004.

The state’s rural areas accounted for nearly one-third of the jobs created, at 3,685. Manufacturing continues to be the leading sector for investment (81%) and job creation (56%).  

South Carolina continued to experience an increase in population. Based on U.S. Census Bureau population estimates as of July 1, 2005, the state’s population stood at 4.26 million, up 1.4 percent from the July 1, 2004 estimates. This represents a growth of 57,191 residents. The growth rate was the 12th fastest in the United States. Since Census 2000, the state has added over 243,000 residents, representing a growth rate of 6.1 percent.

Greenville County was the largest county with a population of 407,383, followed by Richland (340,078), Charleston (330,368), Spartanburg (266,809), and Lexington (235,272).

Compared to 2004, Dorchester County had the fastest growth rate at 5.3 percent to 112,858, followed by Horry County (4.3% to 226,992), York County (3.5% to 190,097), Beaufort (3.0% to 137,849), and Kershaw (2.0% to 56,486). 

In 2005, the state’s per capita income – total income divided by the total resident population -- advanced at a slower pace than the U.S. average, according to the U.S. Bureau of Economic Analysis. Per capita income grew by 4.3 percent to $28,352. In comparison, U.S. per capita income rose 4.6 percent to $34,586. 

South Carolinians continue to use their disposable income to purchase essential items such as new homes. A record number of homes were sold in the state, according to the South Carolina Association of Realtors. In 2005, 72,811 new and existing homes were sold, up 23 percent over the previous year and nearly double when compared to 2000. All areas of the state recorded double-digit increases except Columbia (+7.5%). Sales in Aiken surged 49.6%, followed by Hilton Head (43.8%), Myrtle Beach (+35.5%), the Piedmont (+27.3%) and Charleston (23.6%). Statewide, the median value of homes sold was $148,000. Sales across the state have increased steadily in recent years, with mortgage rates at historic lows and investors turning to real estate than the stock market.

For 2005, the national economy is expanding and showing signs of continued growth. As of March 2006, the U.S. economy has experienced job growth for 30 consecutive months and this trend is expected to continue. For South Carolina, economists project job growth and income growth for the remainder of the year. 

By Mike Daniels

 

2005 Review Nonfarm Employment Tables

2005 Review Nonfarm Employment Charts