Even with the United States reaching the 12-month mark of the COVID-19 pandemic and vaccines being rolled out across the country, employment participation still remains leagues below pre-COVID levels, according to Laura Ullrich, regional economist at Richmond Federal Reserve .
Employment recovered only 50%, she said.
No sector of the industry has registered positive employment growth.
In January, only 29,000 jobs were added to the US economy after the 227,000 jobs fell in December.
GDP plunged 2.5% last year, the biggest drop since the Great Depression.
But the interior of South Carolina remains an anomaly, according to Ullrich.
“I spend a lot of time reminding people that North Carolina and South Carolina are not representative of the country as a whole,” said Ullrich, the keynote speaker at the Upstate SC Alliance 2021 annual meeting, during the virtual event today. “This has been difficult for us as well, but South Carolina and North Carolina have overtaken the United States. They fared better than the US in general, but South Carolina has significantly surpassed North Carolina. “
Four industries in South Carolina witnessed an increase in jobs from February to December 2020: construction (with an increase of 5,100 jobs), manufacturing (1,500 jobs), financial activities (1,100 jobs) and utilities (500 jobs), according to with Ullrich data presented by the Secretariat of Labor Statistics. Some 5,100 jobs have also been added to diverse markets, while the hospitality, education, health care, business services, government and information sectors continue to suffer losses.
South Carolina added a total of 15,000 jobs to the state’s economy from February to December, while job recovery figures for women and the black population still remain below average.
Overall, this adds up to a 2.4% loss in jobs, compared to the country’s 6.2% in December 2020, and the flow of residential and commercial growth in the interior and a robust manufacturing sector, is outperforming many other regions in the Carolinas.
“Manufacturing suffered a major blow in some parts of the country and fell significantly in the United States last year,” she said. “South Carolina added 1,500 jobs in the industry from February to December, so the industry more than recovered in South Carolina, but North Carolina almost lost 3,100 jobs during the year over the same period.”
North Carolina tends to manufacture more legacy products, such as textiles and furniture. South Carolina, especially the interior of the state, has made itself a more diverse portfolio for itself in the automotive parts and advanced materials industries, as well as a thriving life sciences sector, she said.
“Demand for automobiles is very high right now,” said Ullrich, adding that manufacturers and retailers serving high-income audiences, such as luxury car companies, were not so impacted during the pandemic.
Both domestic and foreign companies continue to take notice of the upstate catbird seat, despite the difficulties posed by travel barriers and social distance, according to economic developers.
According to the CEO of Upstate SC Alliance, John Lummus, the economic development group made 263 presentations, received 34 visits and received 29 requests for information from companies interested in moving to the area last year. Despite the circumstances, the RFIs almost matched the numbers for 2019 and 57 economic development projects totaled $ 1.25 billion in capital investment and 3,017 new jobs for the interior of the state.
“There is one thing these numbers tell us, our relationships are stronger than any virus,” said Lummus during the meeting. “These ongoing business recruiting activities are proof of the robust pipeline we have built over the years of travel meetings, building relationships with consultants, international trade officials and partners, such as Irish Manufacturing Research, the Investment and Trade Department of UK and many more. And they show that the interior of the state is an important place to do business. “
The general capital investment in the interior of the state remained up-to-date in relation to previous years, which Lummus attributed to the evolution of industrial technology.
“Instead of running away from these ideas, we need to take any opportunity to make our existing industries more resilient and competitive,” he said. “In fact, we are looking to increase automation and industrial improvement as the future vehicle for growth in the region.”
In Laurens County, site of a recent $ 200 million capital investment in ZF’s Gray Court facility, RFIs have even exceeded pre-pandemic levels, according to Jonathan Coleman, chief executive of Laurens County Development Corp., an addition recent executive of the Upstate SC Alliance committee alongside William Kenley, CEO of AnMed Health.
“We saw the results in 2020, as John mentioned, of many capital investments and job creation in several countries than in 2019,” said Coleman.
Accompanying industrial growth, an increase in home sales swept the country as a whole, but especially the Carolinas, said Ullrich.
“Builders were unable to build houses quickly enough,” she said. “Supply is a problem in many places, and I’m sure, especially in Greenville County, that is a problem, but people are very anxious to buy houses during that time. You can see that as the number of new homes sold has decreased because of the supply, sales of existing homes have skyrocketed. People are moving for different reasons. Part of that, for states like South Carolina, is migrating – people are leaving larger cities and coming to the Carolinas. “
South Carolina is the second most popular state for new residents, according to data from United Van Lines. National home prices increased 9% last year, with a greater increase in Carolinas.
Residential real estate markets in urban centers in Carolina, especially uptown Charlotte and downtown Raleigh, North Carolina, were less popular last year due to concerns about social distance when using public transportation or elevators, shortages of daycare centers and continuing education at home, she said. On the other hand, the most remote or semi-rural scenic areas, such as Hilton Head Island and the most mountainous or lake-filled regions of the state, are experiencing a growth spurt.
“The home market has remained very strong, certainly in places like Upstate,” she said, adding that prices have also risen in areas of Charlotte and Raleigh. “At this interesting moment, one of the things that has certainly stood out is that geography really matters.”
Talk to Molly Hulsey at 864-720-1223.