Charleston area poised for 3% job growth in 2005

A “vibrant” economy will place the Charleston area in the forefront of South Carolina job growth during 2005, according to researchers at the University of South Carolina’s Moore School of Business.

The Lowcountry’s tourism, health care and construction industries are expected to fuel a regional job growth of nearly 3%. The forthcoming Vought-Alenia $560 million aircraft manufacturing center in North Charleston will add an extra boost to the region’s overall economy and further brighten the job picture, economists say.

“The Charleston area is perhaps the most well-positioned in the state for strong growth next year and beyond,” says USC economist Donald L. Schunk of the business school’s research division.

Schunk believes the aircraft parts manufacturing center could be a “catalyst for a new and growing cluster in South Carolina, as did BMW’s location in the Upstate in the early 1990s.”

Additionally, both South Carolina and the nation “should see a ratcheting up of job growth” in 2005, says Schunk.

Schunk presented his 2005 statewide and national economic forecasts to more than 250 business leaders at the 24th annual Economic Outlook Conference sponsored by the Moore School and the Palmetto Institute Dec. 13 in Columbia.

Health services, education, wholesale trade, professional and business services, and leisure and hospitality will provide the strongest job growth in the state, Schunk says.

“We’re no longer in a jobless recovery,” says Schunk.

Although South Carolina has lost more than 68,500 manufacturing jobs since the second quarter of 2000, the Palmetto State has added 36,000 new jobs since the first quarter of 2002. Schunk expects the state’s manufacturing sector to continue seeing job losses in 2005, but those losses—mostly textile, chemical and other nondurable goods jobs—will be offset by employment gains in automobile parts, electronics and other durable goods manufacturing.

During last year’s conference, Schunk forecasted a statewide job growth of 0.8% for 2004, but the year will finish with a 1.1% job growth, he says.

For 2005, South Carolina’s unemployment rate should average about 5.8%, down from 6.4% this year, according to Schunk.

Steve Dykes, economic development director for Charleston County, sees 2005 as a “bright” year for the Lowcountry, thanks largely to the Vought-Alenia deal. Yet as sunny as 2005 appears, “2004 is going to be hard to top in my book,” he says.