SC unemployment reaches 11 percent for February

South Carolina's jobless rate surged to 11 percent in February, edging closer to the 14 percent peak a state advisory board expects as the recession throttles the state with the nation's second-highest unemployment rate.

The February rate lofted well above the nation's 8.1 percent rate. The increase from January's revised 10.3 percent moved the state's joblessness to levels unseen since March 1983. Michigan, with a 12 percent unemployment rate, had the nation's highest rate. North Carolina was fourth after it posted a 10.7 percent rate, its highest in at least 33 years. Oregon was third with 10.8 percent.

The growing joblessness has been playing out as $1.1 billion has been cut from the state's $7 billion budget since July. Lawmakers are battling with Gov. Mark Sanford over using federal stimulus cash to piece together a budget and spare public schools, colleges, health care and public safety programs from losses.

The Employment Security Commission said Friday the state has 241,000 unemployed, up 15,000 from January. If those were all living in one county, they'd rank as the state's seventh-largest.

Allendale County had the highest unemployment rate at 23.4 percent. It was one of five counties with a fifth of the work force out of work.

Lexington County had the lowest rate at 7.9 percent and was the only county in the state with a lower jobless rate than the national average.

Meanwhile, the number of people on jobs in South Carolina has fallen by 88,700 in year as manufacturers have shed 23,500 jobs. But the recession has cleaved into the ranks of white collar occupations, too, with professional and business services losing 16,200 positions.

Sanford has said much of the unemployment problem stems from growth in the state's labor force and Sawyer points the state has a record of one the nation's fastest growing job markets in spite of the jobless rates. On Friday, the commission said the labor force increased by nearly 5,600 in February.

While labor force growth continues to be a factor, "the bulk of the pressure now comes from the fact that the state is losing jobs at nearly the fastest pace in history," Coastal Carolina University economist Don Schunk said.

Economists discounted predictions of 14 percent rate by the Board of Economic Advisors last year as too pessimistic. "It's getting pretty clear we're getting there," Schunk said. He expects the rate to climb into early next year with no turnaround expected before consumers regain enough confidence to spend more freely.

And the sheer volume of the state's jobless will linger as a problem for the state for years to come as the state and businesses pay off federal borrowing to keep checks going to the state's unemployed. Their numbers outstripped the state's ability to cut checks, forcing it to borrow $220.6 million since December to cover weekly payments. Payouts, including enhanced federal benefits, were nearly $41 million last week.

There have been glimmers of good news. For instance, this week FedEx said it would bring 22 jobs to a new York County distribution facility and a biodiesel company is bringing 50 jobs to Horry County. Barnwell County will pick up 1,000 during the next five years as Crane Co. consolidates North American operations there

Those gains are overshadowed by huge job losses or furloughs. Last week, Robert Bosch Corp., said it would furlough 1,900 for three weeks in Charleston. And state layoff reports for February show 399 losing jobs with BMW North America's temporary labor provider in Spartanburg County; Hanesbrands ending 318 jobs in Barnwell County and Allied Air in Barnwell County cutting 350.

Sanford spokesman Joel Sawyer said the state is working to put people back to work. For instance, rapid response teams are trying to match workers with jobs so they walk out of meetings "with a piece of paper in hand with job opportunities."

And the Commerce Department is mulling enlisting some of the state's 700 employment firms "in trying to put people back to work with the jobs that are available out there," Sawyer said. "We don't want to leave any option off the table if there's private sector capacity."