COLUMBIA, S.C. — South Carolina’s unemployment rate ticked up in October, with 4,000 more people unemployed compared to the previous month, according to new data released Thursday. Despite this increase, experts say the labor market remains resilient.
The state’s unemployment rate now stands at 4.7%, up from 4.5% at the beginning of the year, according to Dr. Joey Von Nessen, a research economist at the University of South Carolina’s Darla Moore School of Business.
“Historically, during economic expansions, South Carolina’s unemployment rate averages around 6%. So, even at 4.7%, the labor market remains in strong shape compared to past trends,” Von Nessen said.
Von Nessen explained that while unemployment has risen slightly, several factors are contributing to the current state of the labor market. Higher interest rates, ongoing inflation, and economic uncertainty — including the effects of the presidential election cycle — have led businesses to scale back hiring.
Long-term demographic changes are also playing a role, Von Nessen noted.
“We’re seeing the impact of an aging workforce as baby boomers retire, creating a labor shortage. Employers are still struggling to find the workers they need, even with some cooling in the job market this year,” he said.
Generational shifts are further shaping the workplace as millennials and Gen Z employees take on leadership roles. Younger workers are prioritizing flexibility and remote work, which is influencing how businesses attract and retain employees.
Looking ahead, Von Nessen predicts South Carolina’s unemployment rate will stabilize between 4.5% and 5% by 2025.
“This is a very healthy labor market for South Carolina. Employers need to think long-term about strategies to attract and keep talent as we adapt to this new economic paradigm,” he said.
While challenges like labor shortages and evolving worker expectations persist, Von Nessen emphasized that job opportunities remain strong.
“A good gauge of a normal unemployment rate for South Carolina during economic expansions is around 6%. From that vantage point, we can see that a 4.7% unemployment rate is pretty strong, even though it’s clearly worse than the 3% we had earlier this year,” he said.