South Carolina’s strong labor market is showing initial signs of softening, as economists warn the state’s unemployment rate is beginning to “tick up” amid uncertainty in the broader national economy.
The state’s seasonally adjusted unemployment rate rose slightly to 4.3 percent in August 2025, according to the latest data, matching the national rate. This subtle increase follows a period of historically low joblessness for the state, which had seen its rate under 3 percent as recently as mid-2023.
For the first time since 2020, state economists noted that there are now more unemployed South Carolinians than there are job openings, suggesting the labor market is becoming less tight.
Despite this cautionary outlook, South Carolina’s employment situation remains relatively stable overall. The state’s economy has been a national leader in job creation, and the seasonally adjusted number of employed workers continued to increase, reaching a high of over 2.46 million in August. Job growth, while slowing in some sectors like manufacturing and construction, remains positive in others, particularly in professional and business services and leisure and hospitality.
The slight rise in the unemployment rate reflects a potential cooling period after a sustained economic boom, urging both state lawmakers and business leaders to monitor economic trends closely in the coming months.
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