Three Things to Know: July 7

This week's information compiled by your SC Chamber team includes: 
Southeast Experiencing Significant Wealth Migration, U.S. Labor Market Update, Join A SC Chamber Committee

 1. Southeast Experiencing Significant Wealth Migration

In the past two years, the Southeast has had roughly 2.2 million people move to the region from other parts of the country. Six of the fast-growing states in the South – Florida, Texas, Georgia, North and South Carolina, and Tennessee – are contributing more to the national GDP than the Northeast for the first time in history. This shift occurred during the pandemic and there are some who believe that it will not return to the previous position. Based on data from the Internal Revenue Service, the influx of new residents into the Southeast brought about $100 billion in new income in 2020 and 2021, while the Northeast lost roughly $60 billion in that same time period. In addition, the region has accounted for more than two-thirds of all job growth across the United States since 2020, which almost doubled its pre-pandemic share.

In addition to individuals moving south, businesses and corporations are also moving. States and cities in the Southeast have offered cash and tax incentives that make it worthwhile for them to relocate. Warmer weather, lower taxes, looser regulation, and cheaper housing have always brought in companies and retirees, but the South is now seeing this on a much bigger scale. As JPMorgan Chase CEO Jamie Dimon told Bloomberg TV, “We now have more employees in Texas than New York state.”

South Carolina is seeing the effects of the recent wealth migration in both individuals and corporations. Employment in the Charleston metro area grew by 5.9% last year, which was twice as fast as the national average. The state also saw a record $10.1 billion worth of capital investment from companies planning to locate or expand in the state in 2022. In addition, SC’s GDP has increased to over $226 billion, an increase from $221 billion the previous year.

2. U.S. Labor Market Update

Data released this week by the U.S. Bureau of Labor Statistics (BLS) conflicts with recent analysis that the so-called “Great Resignation” is ending. The monthly Job Openings and Labor Turnover Summary (JOLTS) showed that the number of individuals who voluntarily quit their jobs in May rose by 250,000 or .2 percent from April levels. Experts had predicted that the number of quits, down .4 percent from record April 2022 levels, would continue to decline however the surprising increase seems to indicate that workers across the country still feel strongly about their ability to leave jobs and find better opportunities. Additional JOLTS data shows that the number of available jobs in May declined by roughly 500,000 openings from the prior month, suggesting a slight loosening of the labor market.

Today’s job report released by the BLS showed that hiring eased slightly in June, with employers adding 209,000 jobs nationwide and the unemployment rate ticking down slightly to 3.6%. The BLS data tracked closer to economists estimates unlike a report released by the payroll processing firm ADP that rattled Thursday’s market activities.

3. Join A SC Chamber Committee

 Interested in getting more involved with the SC Chamber? Join a SC Chamber policy committee today and help turn ideas into action.

As part of its advocacy mission, the SC Chamber has developed ten public policy committees composed of business leaders from around the state, each of which is responsible for developing legislative positions and priorities for their respective policy areas. ALL SC Chamber members have the opportunity to participate in these committees - your expertise is needed to help us fulfill our mission of being the leading voice for business in South Carolina. 

A full list of committees can be found here, and upcoming meeting dates are provided below. For those interested in joining a committee, please reach out to Hannah Hopewell at hannah.hopewell@scchamber.net.

Upcoming Committee Meetings:

Tax Committee - Wednesday, August 2nd

Environmental Affairs Committee - Friday, August 4th

Healthcare Committee - Monday, August 28th

Manufacturers Steering Committee - Tuesday, September 12th

General Counsels Committee - Thursday, September 21st