News Summary
South Carolina’s labor participation rate stands at 57.5%, only marginally above its all-time low. Despite claims of economic growth in major metropolitan areas, the state’s participation rate lags significantly behind the national average of 62.6%. Factors contributing to this stagnation include an aging population and criticisms regarding government growth. This trend raises concerns about workforce engagement and the effectiveness of policies aimed at improving labor participation.
South Carolina’s labor participation rate remains stagnant at 57.5% as of April, just 0.2% above its all-time low of 57.3% observed between August and October 2022. This marks the lowest rate since December 2022 and indicates a continuing struggle in the state’s labor market compared to the national average, which stands at 62.6%. South Carolina’s participation rate lags behind the national figure by 5.1%, positioning it among the states with the lowest participation rates in the nation, trailing only Mississippi at 56.2% and West Virginia at 54.3%.
Labor participation is a critical measurement as it reflects the percentage of the population that is either employed or actively seeking work. This metric is often considered a more accurate indicator of employment health than the unemployment rate, which in South Carolina has risen slightly to 4.2%, up by 0.1%.
Despite these concerning labor participation statistics, state officials assert that all major Metropolitan Statistical Areas (MSAs) in South Carolina continue to perform well economically. In recent reports, positive employment growth was noted across these MSAs over both the past month and the past year, contradicting the troubling figures regarding labor force participation.
The South Carolina Department of Employment and Workforce (SCDEW) has attributed the decline in labor force participation primarily to an aging population. Specifically, the proportion of the population aged 65 or older has nearly doubled from 1994 to 2019. However, this reasoning faces scrutiny, as many states with even higher senior populations maintain greater labor participation rates than South Carolina.
Historically, South Carolina’s labor participation rate peaked at 68.5% in the mid-1990s but has demonstrated a steady decline since then. The rate has not crossed the 60% threshold since May 2012, during the administration of Governor Nikki Haley. When Haley concluded her term in January 2017, the labor participation rate had already dropped to 58.2%. This long-term decline raises questions about the effectiveness of policies and strategies aimed at fostering workforce engagement.
Criticism has emerged regarding the growth of government and bureaucratic structures in South Carolina in comparison to the support provided to individual income earners and small businesses. Advocates for economic change argue that a substantial portion of recent state budget surpluses, estimated at around $1 billion for the upcoming fiscal year, may not be returned to citizens and small businesses, citing past trends as evidence.
In summary, South Carolina’s labor participation rate remains low and stagnant, continuing a concerning trend that highlights significant economic challenges for the state. As officials claim economic growth in metropolitan areas, the question remains as to how effectively this growth translates into broader labor participation for the diverse population of South Carolina. Moving forward, addressing the concerns of an aging workforce, rich government growth, and equitable distribution of state resources will be crucial to improving labor engagement rates.
Deeper Dive: News & Info About This Topic
- FitsNews: South Carolina Jobs Report April 2025
- Wikipedia: Labor Force Participation Rate
- Law360: South Carolina Clarifies New Jobs Tax Credit
- Google Search: South Carolina Labor Market
- Carolina Journal: Employment Gains Reflect Policy Success
- Google Scholar: South Carolina Employment
- Live 5 News: South Carolina Adds Nearly 7000 Jobs Over Two Months
- Encyclopedia Britannica: Employment
- ABC Columbia: SCDEW Record Number of Employment in South Carolina
- Google News: South Carolina Employment Growth
Author: HERE Greenwood
The HERE Greenwood Staff Writers are a collaborative team of journalists, editors, and local contributors passionate about delivering accurate, timely information to the Greenwood community. As part of the HEREcity.com Network, which powers over 100 U.S. city sites including HEREcolumbia.com, our staff draws on collective experience in South Carolina journalism to cover everything from business sales and real estate developments to dining deals and community initiatives. Our Expertise and Background Local Roots in Greenwood Our team includes lifelong Greenwood residents and SC natives with deep knowledge of the area’s history, economy, and culture. We’ve covered key events like the recent listing of the historic Grier Building, Greenwood’s railroad and textile heritage, and growth in local education sectors (e.g., Piedmont Technical College programs). Collective Experience With over 50 combined years in journalism, our staff has backgrounds in print, digital media, and community reporting. We prioritize fact-based stories, drawing from sources like the Greenwood Chamber of Commerce, city government records, and on-the-ground interviews. Commitment to Quality Every article is a group effort, involving research, editing, and verification to ensure reliability. We adhere to journalistic standards, citing credible sources and updating content as new details emerge.
