Honestly, if you look at the official data for the unemployment of South Carolina at the start of 2026, you might get two totally different stories depending on who you ask. On one hand, the state has been a literal magnet for people moving from the Northeast and the Midwest. On the other, the actual unemployment rate has been hovering in that "cautiously high" territory—around 4.4% to 4.6%—which feels a bit strange when you see new Boeing wings or BMW frames being bolted together every day in the Lowcountry and the Upstate.
It's a weird paradox. We're "growing," yet more people are technically out of work than they were a couple of years ago. Why?
Basically, it's not that jobs are disappearing; it’s that the "secret sauce" (as University of South Carolina economist Joseph Von Nessen calls the state's population boom) is a double-edged sword. People are moving here so fast that the labor force is expanding quicker than the local businesses can hire them. You've got more bodies in the room than there are chairs, even if the building is getting bigger.
The Reality of the 4.4% Rate
For a long time, South Carolina enjoyed "record low" unemployment. We’re talking sub-3% levels that made hiring a nightmare for managers. But as we’ve rolled into 2026, things have cooled. According to the latest reports from the South Carolina Department of Employment and Workforce (DEW), the number of unemployed individuals has ticked up to over 120,000.
Is that a crisis? Not really.
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In the grand scheme of things, 4.4% is still lower than the 20-year average of about 6%. But it feels different because 2025 was one of the weakest years for job growth since the pandemic. We saw a "bifurcated economy." That’s just a fancy way of saying the people who work in services (hotels in Myrtle Beach, restaurants in Charleston) are doing okay, but the "goods" sector (manufacturing and construction) has hit some speed bumps.
Where the Jobs Are (and Aren't)
If you're looking for work, you've probably noticed that the vibe varies wildly depending on your zip code.
- The Upstate (Greenville-Anderson): Still the powerhouse. Manufacturing hasn't died, but it’s definitely "optimizing." With Scout Motors ramping up in Blythewood, there's a huge focus on electric vehicle (EV) infrastructure.
- The Lowcountry (Charleston): Logistics and tourism are the lifebloods here. However, the cost of living has gotten so high that some people are literally "unemployed" because they can't afford to live near the jobs that are open.
- The Midlands (Columbia): Government and insurance jobs provide a floor here. The unemployment rate usually stays steadier in Columbia than in the resort towns.
What Most People Get Wrong About SC Unemployment
There’s this common myth that if the unemployment rate goes up, it means companies are firing people left and right. In South Carolina, that’s just not what the data shows.
Our layoff and discharge rate is actually historically low. Businesses are terrified of losing the talent they already have. The "unemployment" we’re seeing is mostly people who are "re-entering" the workforce or those who just moved to Spartanburg or Rock Hill and haven't found the right fit yet.
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Another thing: the skills gap is real. The SC Chamber of Commerce has been shouting from the rooftops that 45% of jobs in the state are "critical needs" roles, but only about 29% of our workers have the specific certifications to do them. You could have 10,000 open jobs in cybersecurity or advanced welding, but if you have 10,000 unemployed hospitality workers, the "unemployment" number stays high.
Navigating the DEW System in 2026
If you find yourself among that 4.4%, the process for getting help has changed a bit. The MyBenefits portal is the primary gatekeeper now.
To actually see any money, you’ve got to jump through a few hoops that catch people off guard:
- The One-Week Wait: Your first week of unemployment is an "unpaid waiting week." You don't get paid for it, but you still have to file.
- The Two-Job Rule: You have to complete at least two weekly job searches through the SC Works Online Services (SCWOS). If you don't log them, the check doesn't come.
- The "No Fault" Clause: If you quit because you "didn't like the vibe," you're probably not getting benefits. South Carolina is an at-will state, and they’re pretty strict about only paying out if you were laid off or let go for reasons beyond your control.
Monetary Requirements
You can't just work for two weeks and claim benefits. You need to have earned at least $1,092 in your highest-earning quarter of the "base period" and a total of at least $4,455 over the year. Basically, the state wants to see that you've been a steady part of the tax base before they pay back into your pocket.
Actionable Steps: How to Stay Employed in the "New" SC
The 2026 outlook isn't bleak, but it is competitive. If you're worried about the unemployment of South Carolina affecting your household, here's how to actually pivot:
Get a "Stackable" Credential The state is obsessed with these right now. Technical colleges like Trident or Greenville Tech offer short-term certificates in things like "mechatronics" or "specialized logistics." These often lead to jobs that pay $25+/hour and have zero threat of layoffs because the demand is so high.
Don't Ignore the "Power" Sectors While tech and general manufacturing have cooled, the CAGC (Carolinas AGC) reports that healthcare, power, and data center construction are booming. If your job involves a hard hat or a stethoscope, you're in a much safer position than someone in middle management at a retail firm.
Check the "Hidden" Job Market A lot of the best jobs in SC aren't even on LinkedIn. They're on the SC Works portal or handled through local staffing partners like Performance Staffing Solutions. Networking in the South still matters—sometimes more than a resume.
Monitor the Inflation Tightrope Keep an eye on the news out of Columbia. Economists like Doug Woodward are warning that if inflation ticks back up, consumer spending in our tourist hubs will drop. If you work in a "luxury" service, now is the time to pad that emergency fund.
South Carolina's economy is basically a high-performance engine that’s currently idling at a red light. It’s not broken; it’s just waiting for the next green signal in the national economy. In the meantime, the best thing you can do is ensure your skills match what the state is actually building—which, right now, is a lot of cars, a lot of batteries, and a lot of houses.
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Next Steps for You:
Check your current eligibility on the SC DEW MyBenefits Portal or visit a local SC Works center to see if you qualify for the "incumbent worker training" programs that pay for your re-skilling while you're still employed.