The number of unemployed South Carolinians declined in the final month of last year, sending the state's unemployment rate lower to 3.5 percent.
The December jobless figure fell from 3.7 percent the previous month, according to a report released Jan. 25 by the S.C. Department of Employment and Workforce.
Monthly data, adjusted for seasonal factors, showed that about 3,000 residents who had been classified as unemployed returned to work during December.
That brought the number of employed South Carolina residents to 2.3 million, or about 97,200 more than at the end of 2020. DEW director Dan Ellzey said it was "the highest number of individuals working in our state’s history."
The strongest gains last month were in the large employment category known as trade, transportation and utilities. It was up by 2,700 jobs for December and higher by 17,900 from a year earlier.
"The sector is booming," said Laura Ulrich, a Charlotte-based economist with the Federal Reserve's Richmond, Va., branch.
Ulrich said retailers added the most jobs, with general merchandisers like Target and Walmart driving the increases.
Another growth industry was manufacturing, which added 1,500 jobs, mostly at companies that make long-lasting products such as automobiles, appliances and electronics.
"That fits if you think about demand, it's hard to find durable goods, the products with more than five-year lifespans," Ulrich said.
Other growth sectors included education and health services, which hired 1,100 workers in December.
Meanwhile, the hard-hit leisure and hospitality industry continued to recover from its COVID-19 labor shortage, though the 400 employees it added last month was underwhelming.
"That was disappointing," Ulrich said.
Sector wages are almost 12 percent higher from last December at an average of $16.17 an hour, yet employers continue to struggle to restaff from the pandemic and the hiring woes that preceded the health crisis.
"The question is: How do you get workers to come back?" Ulrich said.
Across the state, 104,500 jobs are open and about 85,100 residents are actively looking. At the same time, older workers are retiring early, and women, especially those with young children, are leaving the labor force.
Ulrich said that "businesses need to find ways to bring people off the sidelines or entice new workers."
Higher wages are one solution, but job seekers also are looking for flexible schedules, she added.
Overall, South Carolina employers added 2,600 jobs last month across all industry categories, excluding farms. That was a slowdown from the gain of 4,600 in November and 6,700 in October.
"You can't add jobs if there aren't enough people to do them," Ulrich said.
