The Palmetto Insider

The blog of the South Carolina Policy Council

South Carolina’s Unemployment Rate Hits 11.1 Percent as Texas Employment Falls Back to Pre-Recession Levels

with one comment

This courtesy of the Georgia Public Policy Foundation:

The payroll count is back to prerecession levels in Texas. California is nearly 1.5 million jobs in the hole. Why such a difference? Chalk it up to taxes, regulation and attitude, says Investor’s Business Daily. The difference in tax systems reflects a difference in attitudes toward business and the wealth that business generates. Capital gains are tax-free in Texas; in California, they are taxed up to 10.55 percent. To an entrepreneur choosing where to set up shop, the message is clear: Texas wants to reward success; California wants to tax it. California also has developed a web of regulations that raises labor costs, spurs litigation and ties up building projects indefinitely. “

The article from Investor’s Business Daily is here. IBD, by the way, is contemplating a move to Plano, Texas.

For the record, South Carolina’s effective (after deductions, etc.) capital gains tax rate is 3.9 percent.

As for unemployment, today’s new figures (from September 2010) contained more bad news. The state’s unemployment rate increased from an estimated 11 percent in August 2010 to 11.1 percent for September. The national rate remained unchanged at 9.6 percent.

(Here, let’s just say The State’s headline that “S.C. employment falls to 11 percent” is deceptive. The preliminary rate for August 2010 was 11 percent. As The State notes, the revised rate for August was bumped up to 11.1 percent.  Thus, they are comparing apples (preliminary) to oranges (revised).)

Moreover, as we have written before, the actual unemployment rate is likely higher because of the number of discouraged/inactive job hunters.

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Written by Jameson Taylor

October 22, 2010 at 9:30 am

One Response

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  1. Here are some additional details from the data:

    The labor force went up by about 5,000 people from August to September

    Total Employed individuals went up by 6,000 people

    Total Unemployed individuals went down by 600 people

    Geoff

    October 24, 2010 at 9:57 pm


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