SOUTH CAROLINA, USA — South Carolina is touting newly released jobs numbers from July that show employment in the Palmetto State's hospitality and leisure industries is now higher than before the pandemic, something North Carolina can't say according to those WCNC Charlotte spoke to.
Newly released Department of Bureau of Labor Statistics data shows South Carolina outpaced its neighbor to the north in the weeks after ending federal unemployment benefits.
“South Carolina’s economy is surging," S.C. Department of Employment and Workforce Executive Director Dan Ellzey said in a statement Friday. "Businesses continue to actively hire to keep up with economic demand."
Federal data shows the unemployment rates in South Carolina and North Carolina dropped in July, and thousands more people went back to work in both states. While North Carolina added 75,600 jobs compared to South Carolina's 20,100, the Palmetto State added significantly more leisure and hospitality jobs.
"This was a very good jobs report for South Carolina as a whole," University of South Carolina Research Economist Joseph Von Nessen said. "Leisure and hospitality was the top job creator this month in the month of July."
The data shows the leisure and hospitality industry added more than twice as many jobs in South Carolina (9,300) than in North Carolina (3,800). Von Nessen said that sector, which generally pays $16 or less an hour, would benefit the most from an extra $300 a week in unemployment. He said the early data appears to show the impact of Gov. Henry McMaster ending those federal unemployment payments early.
"It is likely that the end of the federal benefits had some impact on the leisure and hospitality's strong growth this month, but it's difficult to say how much," Von Nessen said. "One month of data doesn't make a trend."
He said another factor that likely impacted the added jobs is the increased demand in July for travel and dining.
South Carolina's unemployment rate dropped from 4.5% in June to 4.3% in July. Meanwhile, North Carolina's unemployment rate dropped from 4.6% in June to 4.4% in July. Both remained well below the national average of 5.4% in July and both fell at the same 0.2% rate.
In North Carolina, Gov. Roy Cooper vetoed a bill that would have ended the extra $300 a week payment. However, the federal unemployment benefits will end on September 4, 2021.
Patrick McHenry, a Republican representing North Carolina's 10th district in the U.S. House, is among those who think North Carolina and other states should end the extra $300 a week. He said there is ample work for those who want it.
"There is a time and a place for the government to step in and help people that lost their jobs through no fault of their own. That time has now passed," he told WCNC Charlotte. "It's a multi-faceted problem, but that is a key part of the problem."
For months, business owners have expressed concerns about an ongoing worker shortage. Some blamed the lack of applicants on the extra federal benefits.
"Despite this improvement, employers still need workers," Ellzey said. "Employment opportunities are there for job seekers to find a job fast, change careers, advance a career, replace a lost job, find shift or part-time work, get on-the-job training or experience, and much more. Reemployment drives our recovery."
Von Hessen said the payments aren't the only things impacting the worker shortage. He said other factors include a large number of baby boomers retiring and more people saving money, thanks in part to stimulus checks, which temporarily eliminates the need to work.
"All of these factors are happening simultaneously that's driving this worker shortage," Von Nessen said.
Contact Nate Morabito at nmorabito@wcnc.com and follow him on Facebook, Twitter and Instagram.
WCNC Charlotte is always asking "where's the money?" If you need help, reach out to the Defenders team by emailing money@wcnc.com.