Andy Brack, Commentary

BRACK: Economy better, but work needed in rural areas

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By Andy Brack, editor and publisher  |  The state’s economy generally is doing pretty well thanks to historically high tax collections, the lowest gas prices in the nation and a big increase in home sales.

00_icon_brack“Recent numIntibers show a steadily strengthening economy,” state Department of Revenue Director Rick Reames III said last week.

Commerce Secretary Bobby Hitt adds that the successful growth of existing industry in this state is fueling efforts to recruit more businesses.

“We’re leading the Southeast in manufacturing job growth, and thanks to a terrific team-first approach, we have successfully recruited more than $5 billion in capital investment to our state in three of the last four years,” Hitt said. “From aerospace to automotive, agribusiness to tourism and everything in between, South Carolina’s diverse economy is healthier than it’s ever been, helping us ensure financial prosperity for South Carolinians today and in the years to come.”

Other positive indicators: Personal income in South Carolina increased by 1.2 percent in the first quarter of the year. Non-farm employment rose by a half percent in June by 10,400 workers and the state had a historic high in terms of the number of citizens working — 2,112,034, according to the state Department of Employment and Workforce.

There’s even pretty good news on unemployment. The statewide rate dropped 0.2 percent in June to 6.6 percent — way better than it was four years ago when more than half of the state’s counties had double-digit unemployment.

To get an idea of how much things have turned around for most of the state, consider that 41 counties had unemployment rates of 8.6 percent or higher in June 2012, compared to 13 today. If you just look at counties with double-digit joblessness, 26 counties qualified four years ago. As of this summer, it’s just five.

15.0821.unemploymentchart

In fact, these days, the state’s metropolitan areas look much like the rest of the nation, where the average unemployment rate is 5.5 percent. That’s what it is also in Charleston County, where Boeing’s investment in thousands of workers is paying off locally in a big way. Other counties with relatively low rates are Lexington (5.6%), Greenville (5.7%) and Berkeley (6.1%). Beaufort and Jasper counties, with the proximity to the Savannah metro area are under 6 percent, as are Newberry and Saluda.

What’s pushing up the state’s overall unemployment rate is the lack of work in the more rural counties. Of particular concern are places where unemployment still is above 10 percent — Allendale (11.5%), Bamberg (11.3%) and Marlboro (11.1%) counties. In Marion County, unemployment dropped from 18.1 percent to 10.4 percent over the last four years. In Orangeburg County, it’s dropped three points to 10.9 percent.

Next year, state lawmakers should make vigorous attacks with strategic investments to energize high unemployment areas of the state. These counties often have high tax rates with comparatively small tax bases, which discourage the kind of infrastructure investments in water, sewer, high-speed Internet and roads that are needed to attract new businesses and change lives.

These areas have people who should be able to work, but lack the education or skills that businesses need to get their jobs done. The state should swoop in strategically with targeted workforce training programs and programs to upfit local schools with additional resources so that students will graduate on time and have the skills they need to be successful.

In many ways, South Carolina has proven it has the know-how, skills and programs to be successful for her citizens. Look at the major investments by companies like BMW, Volvo, Boeing, Bridgestone, Giti, Continental Tire and the hundreds of suppliers that keep these big industries thriving. But these mostly metropolitan successes need to trickle down to rural areas where the quality of life is outstanding but there’s a business drought.

To continue to forget rural areas of our state is morally wrong. They might not have the political power that they had in days gone by, but they’re just as much a part of South Carolina as anyone who lives in a big town or has a big house.

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