Surprise! South Carolina Unemployment “Decrease” Was Not a Good Thing

Not that the hacks at rags like The Greenville News would let you in on the big secret. The unemployment rate went down because a number of people were dropped from the rolls so they were no long counted … even though they’re still unemployed. But worse is that as the private sector has shed jobs as government expanded:

A shrinking labor force and increased government hiring are making the job numbers look better than they really are, according to a new policy brief from the South Carolina Policy Council.

Despite a decline in the state unemployment rate from May to June (11.1 percent to 10.7 percent)—something typically viewed as a good thing—there were fewer people actually employed in June than in May. As of June 2010, there were 1,919,404 persons employed in South Carolina, compared to 1,920,479 as of May.

Workers who have dropped off the unemployment rolls are not included in unemployment figures. The pool of potential workers (i.e., those looking for work) shrank once again from May to June 2010—from 2,159,200 to 2,149,600—a contraction of 9,600 persons.


Since the beginning of the recession in December 2007, private sector employment in South Carolina has declined by 124,100 jobs, or 7.71 percent. By comparison, public sector employment has increased by 19,600 jobs, or 5.75 percent.

Why is that bad? Well for all you people educated by the communists who run the schools I’ll explain. Every government job is paid for by several taxpayers. With the salary plus benefits they receive it would be too expensive for multiple public service workers to be paid for by one taxpayer obviously. With that in mind you want an economy where the private sector is much larger than the public sector so that we have more people paying into the government than being paid by the government.

But we’re heading in the opposite direction, a California economy where the state is paying out more than it takes in. Once that happens it will be impossible to dig out of the hole. Don’t let the Tea Party optimism fool you, the states that are in bad fiscal shape will not be saved by the right sweeping into power, it’s too late. The only thing states can do is try to keep from getting as bad as places like California.

To do that we need to grow private sector employment and profits and shrink the liabilities the state has. The press here should be telling you the truth about the situation but they’re not. Why?


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