May 18, 2013

SC unemployment rate drops to lowest level since 2008

South Carolina’s seasonally adjusted unemployment rate fell in April to 8 percent— the lowest level in Gov. Nikki Haley’s administration and the lowest rate since October 2008. However, a large part of the decrease was due to fewer people in the state’s labor force.

Data released from the state Department of Employment & Workforce Friday shows the jobless rate dropped from 8.4 percent in March, the largest month-to-month drop since May 1987.

Over 5,000 people dropped out of the labor force between March and April, according to the SCDEW data. That was combined with nearly 3,000 more people listed as employed across South Carolina.

The state unemployment rates was 9.3 percent in April 2012.

A large part of the growth was 8,700 more jobs reported in the hospitality and leisure sector as the summer tourism season ramps up. The sector has seen a growth of over 10,400 jobs since April 2012. Employment also grew by 2,700 in the Professional & Business Services sector since March.

However, manufacturing lost 900 jobs and government posted a net loss of 200 more.

Every county reported a decrease in the unemployment rate from March. However, a majority (31 of 46) also saw their labor force shrink in that span. Lexington County had the lowest jobless rate at 5.7 percent. Marion County was the highest at 15 percent.

Budget week: Medicaid expansion fight to continue in Senate

This week, the South Carolina Senate takes up the 2013-14 state budget by reviewing the changes the Senate Finance Committee made to the House’s spending plan.  Senate leaders from all sides expect debate to be more peaceful than in the recession years, as state government enjoys a revenue surplus of about $683 million.

However, there will be points of contention over the $6.3 billion spending plan.  One of those will be the mainly partisan fight over Medicaid expansion, allowing three years of federally funded healthcare benefits extended to an additional 350,000 South Carolinians. The House rejected the idea of the state agreeing to the expansion; the Republican majority says it is an “Obamacare” overreach.  Senate Finance Committee members defeated the expansion by two votes.

Yet this debate is not over. Senate Democrats, bolstered by the support of South Carolina hospitals and medical community, say they are taking the fight to the Senate floor, by introducing an amendment to the budget bill.

Spokesman for Senate Democrats, Phil Bailey says, ”This is a three-year program which is going to be completely funded by the federal government, i.e. our tax dollars. Let’s take advantage of it, let’s expand it out to South Carolina’s working poor. We have an opportunity to close the uninsured gap by half.”

He echoes the argument of House Democrats: “These are our tax dollars and we want to keep them back here in South Carolina rather than have them go out of state to New Jersey, New York and California.”

Senator Shane Massey (R-Edgefield) says the expansion under the Affordable Care Act is far from affordable: “If anything it is making health care more expensive.  If it’s affordable it’s only because the government is paying for it.”

“There are real social and cultural costs to giving able-bodied people things for nothing,” Massey argues.  He says South Carolina, through the current Medicaid system, already provides medical coverage to the disabled, the elderly, and children.

“This is a significant departure from what we have known as Medicaid,” Massey says.

 The state can pull out of the program after three years, when the state’s part will begin t0 progressively increase to 10 percent by the year 2020.

Massey says he does not believe the program would stop then.

“Once an entitlement is given, you just don’t yank it way. That just doesn’t happen.”

Nutrition programs for SC seniors takes sequestration hit

The federal budget cutbacks known as sequestration has led to the scaling down of many programs that are designed to help South Carolinians in need. That includes the loss of approximately $791,000 in nutrition assistance for seniors, most notably for the Meals on Wheels program.

Sharon Seago, director of the Central Midlands Council of Governments Agency on Aging says her office is losing funds for the program designed to make sure that a number of seniors get at least one balanced meal a day. The agency serves Fairfield, Newberry, Lexington, and Richland counties.

“Were losing about $15,000 for home delivered meals, and were losing in group dining about $28,405 dollars.”

Seago says the price of meals vary in the different regions of each county her agency serves. However she estimates that about 3,000 meals would be lost region-wide. She adds that is significant when you consider that the program was still falling short of serving all the citizens that had requested the help even before the cuts.

“The vast majority of people are getting just one meal per day, just because we have waiting lists for people who are interested in receiving meals and need to receive meals,” Seago said, ”We can only offer two meals a day to a person under very special circumstances.”

Seago says it’s still too early to tell if the state and local governments will be able to fill the void of the funds that have been lost.

“I know the lieutenant governor has asked the legislature for additional funds, but we don’t know at this point if we will be getting those or if they meet the gap. We do not know how much it would be. We don’t know if the local governments will be able to fill in the gap; that’s an unknown right now.”

Clyburn wants “Main Street” targeted growth

President Obama held a dinner Wednesday night with members of the House Democratic leadership, including the third-ranking Democrat in the House, 6th District Congressman Jim Clyburn. Appearing on MSNBC Thursday morning, Clyburn said while there are indications that the nation’s economic engine is picking up speed he expressed to the president that not enough citizens are benefitting from the growth.

“We need to make sure as we get this recovery underway, that we not focus just on Wall Street, where we have been breaking all kinds of records, where (the Dow) was over 15,00o at closing two days ago; yet we see on main street things aren’t going too well.

Jim Clyburn

Jim Clyburn

Clyburn says he can envision a process toward an economic “grand bargain” that would include looking at all expenditures, all expenses, including Medicare and Medicaid and closing (tax) loopholes without burdening seniors and low-income citizens.

“I expressed to the president that I was very, very concerned about doing what is necessary to strengthen the weakest links in our society. The president made it very clear that he has those concerns as well.”

Clyburn said he expressed to the president that he was all for getting the nation’s economic  house in order, but that any steps toward striking a “grand bargain” should not  include putting undue burdens on the backs of citizens  who are struggling each day to make ends meet.

“I’m all for getting our fiscal house in order, but I don’t want to do so by unduly burdening senior citizens and children in our society, those that we ought to be especially protective of.”

Haley picks labor attorney to head SC unemployment agency

Stanton speaking at the Statehouse

Stanton speaking at the Statehouse

Governer Nikki Haley announced Thursday she has chosen a New York labor attorney and former White House aide to be the new director of the South Carolina Department of Employment and Workforce.

Cheryl Stanton will lead the state’s unemployment agency after former director Abraham Turner resigned nearly two months ago.

“I know that there have been a lot of challenges in terms of making sure that the department runs correctly, but also making sure that the people who are getting benefits are getting the benefits correctly,” Stanton said at a news conference Thursday.

Stanton is the first woman to lead the department, which only became a Cabinet agency in 2010. She has worked nine years as a general counsel for Ogletree Deakins, a law firm specializing in labor cases. She also worked as an associate counsel to President George W. Bush.

Former agency head Abraham Turner handed in his resignation Feb. 15 amid a backlash from legislators over the agency’s plans to cut in-person help for unemployment benefits at 17 rural offices. The agency has also come under fire for its struggles at clamping down on unemployment fraud.

Governor Haley says she chose Stanton from three finalists picked by a legislative screening panel as the person who will best serve the agency’s growth.

“I don’t want you to just go manage the agency. I want her to go lift it up to the point that we’re looking at numbers and results, and where are we going, and how are we handling the workforce and the management of that,” the governor said Thursday.

Stanton says she just wants to dive in, find out what the problems are within the agency, and find the best way to fix those problems.

“I think the first thing that needs to happen is listening. I need to understand where people are coming from and what problems they’re seeing, and what solutions they have to propose,” Stanton said.