Unemployment Claims in South Carolina Declined Last Week: A Sign of Resilience or a Temporary Shift?

South Carolina saw a notable decline in unemployment claims last week, signaling a potentially positive trend for the state’s labor market. According to the latest data released by the South Carolina Department of Employment and Workforce (DEW), initial jobless claims fell by 8.6% compared to the previous week, continuing a multi-week pattern of stability and modest improvement.

While state officials and business leaders welcomed the news, economic observers remain cautious about the underlying factors contributing to the dip and what it could mean for the months ahead. As South Carolina navigates post-pandemic economic shifts, labor shortages, rising costs of living, and wage pressure, the drop in unemployment claims prompts important questions about long-term workforce dynamics.

This article explores the recent decline in jobless claims, its possible causes, sectoral breakdowns, and what it reveals about the broader South Carolina economy.

A Closer Look at the Numbers

For the week ending May 4, 2025, South Carolina reported 1,415 initial unemployment claims, down from 1,548 the week prior. The decline marks the third consecutive week of falling claims, suggesting relative stability in a labor market that has shown signs of strain in the first quarter of the year.

By comparison, the same week in 2024 saw roughly 1,710 initial claims—indicating a year-over-year improvement of about 17%.

“Fewer people are filing for unemployment, and that’s a good sign,” said Dan Ellzey, executive director of the DEW. “We’re continuing to see strong demand for workers, especially in manufacturing, hospitality, healthcare, and transportation.”

This drop in claims is part of a broader regional trend across the Southeast, where states like Georgia, North Carolina, and Tennessee have also reported declines in initial jobless claims amid strong spring hiring and a resilient consumer economy.

Industries Driving the Decline

While the overall number of jobless claims has declined, a deeper dive reveals which sectors are contributing most to this improvement.

1. Manufacturing
South Carolina’s manufacturing sector—bolstered by auto, aerospace, and industrial equipment production—continues to show resilience. Companies such as BMW, Boeing, and Bosch have expanded hiring initiatives and maintained production schedules. The state’s robust manufacturing base is one of the key factors in the reduction of unemployment claims, particularly in counties like Spartanburg, Greenville, and Anderson.

2. Hospitality and Tourism
As warmer months approach, the hospitality industry in coastal cities like Charleston, Myrtle Beach, and Hilton Head is gearing up for the busy season. Seasonal hiring has picked up significantly, which has reduced jobless claims in leisure and hospitality.

“Hotels are full, restaurants are packed, and we’re hiring across the board,” said Rachel Porter, general manager of a resort in Hilton Head. “It’s hard to find workers fast enough.”

3. Healthcare and Social Assistance
Demand for healthcare workers remains high across the state. Hospitals, nursing homes, and clinics are in constant need of nurses, CNAs, and support staff. Several healthcare systems have ramped up hiring and retention bonuses, helping lower unemployment figures in that sector.

4. Transportation and Warehousing
With the growth of e-commerce and South Carolina’s strategic location for logistics, trucking companies and warehouses continue to hire aggressively. The Port of Charleston has reported an uptick in container volumes, increasing the need for supply chain workers.

Regional Variations in Claims

While the statewide decline is encouraging, not all counties are experiencing the same trajectory.

• Charleston County reported the largest drop in claims last week, followed by Horry and Lexington counties.
• Rural counties like Allendale, Marlboro, and Bamberg, however, continue to show higher per-capita claim rates due to more limited employment opportunities and slower economic diversification.
• Greenville and Richland counties, which house major urban centers, saw modest declines in claims, maintaining a healthy labor environment.

The DEW has indicated it plans to increase workforce development outreach in rural areas to help job seekers connect with openings, training programs, and transportation options.

Employer Sentiment and Labor Market Tightness

While fewer unemployment claims are typically seen as good news, they can also signal a tighter labor market, which brings its own set of challenges. Many South Carolina employers are struggling to find qualified workers.

A recent survey by the South Carolina Chamber of Commerce found that 68% of businesses say their top concern is finding and retaining talent. Labor force participation in South Carolina hovers around 57%, slightly below the national average, and employers are reporting increased wage competition and higher turnover.

“There’s no shortage of jobs in South Carolina, but there’s definitely a shortage of people ready to take them,” said Rick Todd, president of the South Carolina Trucking Association. “We’re offering signing bonuses, training stipends, and flexible shifts, but the hiring pipeline is still thin.”

The Role of Workforce Development Programs

State officials say part of the recent improvement in unemployment data stems from new investments in job training and workforce development. The “Be Pro Be Proud” initiative—launched in partnership with technical colleges and private industry—continues to attract young people to skilled trades like welding, plumbing, and CDL driving.

Additionally, Gov. McMaster’s administration has expanded tuition-free programs at the state’s technical colleges, helping to close skill gaps in key industries like advanced manufacturing and healthcare.

The state’s SC Works centers have also ramped up outreach efforts, hosting job fairs, resume workshops, and career readiness programs to connect unemployed residents with available opportunities.

Cautionary Notes: Not All Signs Point to Recovery

Despite the positive trend in unemployment claims, economists warn that these weekly figures should not be viewed in isolation. Several lingering challenges remain:

1. Underemployment and Part-Time Work
Many South Carolinians who are not filing for unemployment are still underemployed—working part-time or in temporary roles when they would prefer full-time, permanent positions.

2. Stagnant Wages in Some Sectors
While wages have risen in high-demand sectors, others—particularly retail, administrative support, and personal services—have seen only modest pay increases. Inflation continues to erode purchasing power, especially for lower-income workers.

3. Disconnected Workers
A significant number of residents are no longer actively seeking employment and therefore aren’t counted in jobless claims data. These include early retirees, discouraged workers, and caregivers unable to return due to lack of childcare.

4. Potential for Future Economic Softening
With national interest rates remaining elevated and signs of slowing consumer spending, some economists believe a mild economic slowdown could occur later in 2025. If that happens, jobless claims could begin to rise again.

Voices from the Ground

Ashley Middleton, 34, Retail Manager in Columbia

“I was laid off at the beginning of the year, but I just started a new job at a logistics company. It’s not what I went to school for, but it pays better than my last job. I’m grateful to be back on my feet.”

James Rivers, 59, Machinist in Spartanburg

“We’ve been working overtime for months. Business is booming, but we’re short-handed. I hope more people come into manufacturing—it’s a good living.”

Tameka Johnson, 27, Single Mother in Orangeburg

“I want to work, but daycare is too expensive. I’m not on unemployment anymore, but I’m not working either. It feels like I’m stuck in limbo.”

Policy Implications and Future Outlook

The decline in jobless claims gives policymakers a rare chance to build on progress while planning for future uncertainties. The state budget, currently under debate in the legislature, includes several workforce-related proposals that could shape the labor market:

• $78 million for workforce scholarships to make two-year technical education more accessible.
• A 3% pay raise for state employees to boost retention.
• Expanded funding for DEW programs to enhance job matching and training.

State leaders are also considering tax incentives for businesses that invest in employee training, a measure that has drawn bipartisan support.

Meanwhile, economists recommend that the state also focus on addressing barriers to workforce participation—like childcare, transportation, and housing costs—that prevent many from fully reentering the job market.

Encouraging but Fragile Progress

The decline in unemployment claims is a welcome signal of resilience in South Carolina’s economy, but it’s not the full picture. While many sectors are booming and companies are hiring, structural issues continue to keep some workers on the sidelines.

For now, the numbers suggest a stable labor market heading into the summer, buoyed by strong tourism, manufacturing, and logistics. But future volatility—be it economic, political, or health-related—could quickly change that outlook.

Ultimately, South Carolina’s challenge will be not just reducing unemployment, but ensuring all residents have access to stable, well-paying, and fulfilling work.