S.C. cuts federal unemployment boost from weekly payments

COLUMBIA - South Carolina will leave the federal unemployment programs providing extra money to jobless residents in light of "unprecedented" workforce shortages across the state, Gov. Henry McMaster announced on Thursday.

The state will opt out of the coronavirus pandemic assistance programs beginning June 30. The federal benefits include an extra weekly $300 to unemployed workers that was scheduled to run through early September.

The labor shortage has affected all areas of the state's economy, state government officials said, with the hotel and food service industries especially hard hit. McMaster said the shortage was created in large part because of the supplemental federal payments.

"In many instances, these payments are greater than the worker's previous paychecks," McMaster said in a statement. "What was intended to be a short-term financial assistance for the vulnerable and displaced during the height of the pandemic has turned into a dangerous federal entitlement, incentivizing and paying workers to stay at home rather than encouraging them to return to the workplace."

Earlier this week, Montana Gov. Greg Gianforte said the state also would be leaving the federal unemployment program.

South Carolina's workforce agency cited Montana's decision in a memo to McMaster and estimated that during 10 weeks, jobless workers in the state would lose out on a total of $585.3 million in additional federal benefits.

The South Carolina Department of Employment and Workforce has sought to get people back into jobs, repeatedly advertising more than 80,000 job postings available via an online state portal.

As of March, the state reported a 5.1% unemployment rate, compared to a national rate of 6%. Just 2,856 people filed initial unemployment claims last week, according to the agency. More than 108,000 people received an average weekly benefit of $230.04 as of last week. With the $300 federal benefit added on, that takes the state's average compensation to about $530.

"While the federal funds supported our unemployed workers during the peak of COVID-19, we fully agree that re-employment is the best recovery plan for South Carolinians and the economic health of the state," DEW Director Dan Ellzey said in a statement. "Last week's initial claims numbers were the lowest since the pandemic began, and employers around the state are eager to hire and anxious to get South Carolina back to business."

McMaster appointed Ellzey to the state agency leadership post in 2019.

In April, the workforce agency began requiring people to conduct twice-weekly job searches in order to receive jobless benefits. The department had previously suspended the work search requirement because of the pandemic.

Ellzey also added Thursday that his agency has notified the U.S. Department of Labor of its intention to opt out of those federal programs as of claim week ending June 26, 2021, to comply with the governor's June 30, 2021, deadline.

The agency encouraged claimants to continue to certify each week and do their two work searches while they find employment. DEW added that it will continue to share key information and instructions with claimants as it has done throughout the year-plus-long pandemic.

Sumter Item reporter Bruce Mills contributed to this report.