South Carolina’s stubbornly low labor participation rate edged up again in April as more eligible workers joined or rejoined a tight job market that’s showing no signs of loosening up.
The labor force, defined as the number of residents with jobs or looking for work, grew by 13,206 in April to about 2.4 million and was up by 25,500 from a year ago, the S.C. Department of Employment and Workforce said May 19.
It was enough to nudge the closely watched participation rate slightly higher, to 56.3 percent from 56.1 percent in March.
But the figure continues to lag nationally. At the same time state’s unemployment rate dipped last month to 3.1 percent from 3.2 percent.
The labor market will “remain tight for the foreseeable future because of the state demographic,” said Laura Ullrich, a Charlotte-based economist with the Federal Reserve Bank of Richmond.
While South Carolina’s population continues to grow, “most people coming to the Palmetto State are not coming to work,” Ullrich said.
She added that residents aged 55 to 65 who retired during the pandemic are not seeking employment. And fewer white males 20 and older are participating in the labor force than before COVID-19.
On the positive side, Ullrich said the number of South Carolinians in the prime-working-age group of 25-54 is considerably higher compared to pandemic levels, as is the number of Black men 20 and older
Ullrich said that could be because higher pay and flexible schedules are pulling eligible workers off the sideline to fill open positions.
The DEW’s latest report showed employers added 7,100 nonfarm payroll jobs to a record 2.3 million in April.
The professional and business services sector led the gains with 3,000 additional positions. The leisure and hospitality industry grew by 1,600 jobs, while education and health services grew 1,300 workers.
Most new jobs are in the state’s developed urban areas, while rural regions continue to struggle. In response, DEW this month launched SC@Work: Road Trips to supplement the efforts of local employment centers. Trucks rolled out to six communities in the Pee Dee region early this month, including Clio, Dillon and Mullins, and more trips are planned for July.
“The goal of taking this show on the road is to reach job seekers with barriers to employment, such as transportation, which prevent them from accessing regional workforce development services,” the agency said in a written statement.
The latest monthly data showed the state’s job market remains healthy yet tight, with 2.3 million workers on payrolls, or nearly 14,000 more than in March and up by 54,000 from April 2022.
“Even with the positive growth and outlook in the state, more work remains to be done,” said William Floyd, DEW’s recently confirmed director.