New numbers show how S.C. economy went from optimistic to free fall in March
The beginning of March 2020 was a time of economic optimism.
Early month employment in the Hilton Head-Bluffton-Beaufort metropolitan area was up by 2.28%, or about 1,900 jobs, compared to the same time a year ago, according to seasonally adjusted data from S.C. Department of Employment and Workforce. The areas had a higher percentage growth than every other S.C. metropolitan area, including Charleston, 0.78 percent, and Columbia, 1.52 percent.
Across the state, South Carolina’s economy had added 28,900 non-agricultural jobs over the course of the year, and no industries reported declines in jobs. The biggest share of increases came in the professional and business services industry and government, according to the data.
Beaufort County’s unemployment rate in March was slightly down from the previous month, dropping from 2.8% to 2.7%, and down even more from March 2019, when it was 3.2%.
The picture was downright rosy.
It got darker quickly with the arrival of the coronavirus.
The survey was completed “prior to the closings of many businesses and prior to our state truly experiencing the [effects] as we took shelter to combat COVID-19. We expect the release on May 22, 2020 to be a more accurate depiction of the current unemployment situation in our state,” said Dan Ellzey, SCDEW executive director, in a news release.
Early warning signs
Much of the yearly growth seen by South Carolina’s economy would be wiped away as the pandemic grew.
State officials announced the first two potential cases of coronavirus on March 6.
U.S. travel demand began to plummet as travelers, wary of catching the virus, stayed home.
In South Carolina, the leisure and hospitality industry — one of the hardest hit groups by coronavirus — saw a loss of over 10,000 jobs. That represented a decrease of nearly 4%, from February to March 2020, according to the data.
It was the highest rate of change among all industries in the state and a sign of more bad things to come.
About 1,400 jobs of all types were lost in the Hilton Head-Bluffton-Beaufort metropolitan area.
Unemployment soars
Following the lead of other states, S.C. Gov. Henry McMaster declared a state of emergency on March 13.
During that week, initial claims for unemployment benefits were at 1,996 across the state, according to previous figures from SCDEW.
The following week saw those numbers jump to 31,504 new claims, as a cascade of businesses shut down.
The next week, ending on March 28, saw new filings more than double to 64,856, a more than 3,000% increase from the second week of March.
As of April 11, South Carolina’s initial unemployment benefit requests are at 87,686.
Claims in Beaufort County are at 2,694, the new filings show.
S.C. workers who met requirements for unemployment benefits have to file continued claims, a number that has not been updated by the Department of Labor since the end of March as the department works to fulfill requests.
There were over 75,000 claims to continue unemployment benefits in South Carolina at the end of March, according to the Department of Labor.
The SCDEW touts that it has beefed up staff to meet demand for new claims, after reports of frustrating technical issues from claimants. The agency is also able to employ some federal streams of funding for additional aid, The federal CARES Act includes a $600 a week increase for those receiving benefits.
“We are all in this together and I assure you the Department of Employment and Workforce will continue to serve the good people of this state for the duration of this pandemic event,” said Ellzey.
This story was originally published April 17, 2020 at 2:36 PM.
