What Is Driving South Carolina’s Employment Growth?

Alex Dmyterko
Mar 5
6 min read

South Carolina’s economy is booming. But what is fueling this surge?

From population growth, thriving essential industries, and strategic advantages like infrastructure improvements, the Palmetto State is seeing rapid employment expansion.

In this article, we’ll explore South Carolina’s impressive job growth, from advanced manufacturing and logistics to tech jobs and the role of local businesses.

We will examine how everything from demographic trends to the expanded Panama Canal is directly impacting the state’s success.

South Carolina’s Booming Economy and Population Growth

South Carolina’s economic growth, which had the second-largest increase in real GDP in 2024, has been powered by advanced manufacturing industries (such as automotive, tire, and aerospace) alongside retail and distribution.

These industry sectors have expanded by over 25% since 2010 and now employ upwards of 150,000 people, according to a study the University of South Carolina conducted in partnership with the SC Council on Competitiveness.

The data reflects the state’s broad-based economic momentum; several key industries are hitting full stride, outpacing the national average. In addition, South Carolina's population growth is a vital element in the state’s employment boom. It was the fastest-growing state in the nation in 2023. It expanded by 1.7% to about 5.4 million residents. That’s an increase of over 255,000 people since 2020.

A growing population means a larger labor force and greater consumer demand, a healthy formula for economic and job growth. The influx of residents fuels sectors like housing and health care, creating even more employment opportunities.

The Role of Manufacturing

Another major engine of South Carolina’s job growth is its manufacturing sector, especially in advanced industries like automobiles and aerospace. The state has become a powerhouse in the Southeast, attracting well-known automotive firms and a network of suppliers.

The production of cars, tires, and planes has significantly ramped up, leading to the creation of thousands of jobs. According to the latest data from 2023, manufacturing accounted for approximately 266,000 jobs in the state and has shown a consistent upward trend.

Companies are hiring for roles ranging from welders and machinists to logistics coordinators. This manufacturing renaissance includes both legacy industries and new ventures.

An exciting emerging sector is in electric vehicle production and battery technology. A flagship project is the new EV plant by Scout Motors near Columbia, expected to create around 4,000 jobs when it opens by 2026.

These developments not only directly generate jobs but also boost related local industries, from parts suppliers to construction. This growth extends a boost to other businesses, such as restaurants and retailers.

State and local leaders have cultivated a business-friendly environment with training programs, tax incentives, and infrastructure investments to lure manufacturers. As a result, South Carolina has built a reputation as an automotive and aerospace hub in the South.

Manufacturing employment in South Carolina even grew through the late 2010s and into the 2020s at a time when it stagnated in many other parts of the country—a testament to the state’s successful focus on industrial growth.

Tech Jobs

South Carolina is also experiencing a boom in the tech sector, propelling the state's economic growth to new levels. Long known for manufacturing, the state is now rapidly expanding into software development, IT services, and other technology fields.

A 2024 economic impact study by the South Carolina Council on Competitiveness revealed that the state’s tech industry has grown more than twice the rate of the overall economy in the past decade. The tech jobs being created are high-paying and plentiful.

The tech sector contributes an estimated $51.7 billion in economic output and supports over 143,000 jobs statewide.

To put that in perspective, employment in the tech sector has shot up by 56.7% since 2020, far outpacing the roughly 5% overall state employment growth in that same period (as of October 2024). These new tech jobs include roles in software engineering, cybersecurity, data analytics, and advanced manufacturing technologies. They also tend to pay well.

On average, a tech job in South Carolina pays almost $97,000 per year, which is nearly 80% higher than the state’s average wage. This influx of high-skilled, high-wage jobs is diversifying the economy and attracting a younger, educated workforce to the state. This means South Carolina is well-positioned to continue adding jobs not just in factories and construction sites but also in labs and office parks.

With its lower cost of living and doing business compared to tech hubs like Silicon Valley or the Northeast, South Carolina has become an appealing location for tech startups and satellite offices.

This growing tech ecosystem complements the manufacturing base.

Ports, Logistics, and the Expanded Panama Canal

Geography has always been on South Carolina’s side, and the state’s strategic location is now paying major dividends towards employment growth. It is situated in the heart of the Southeast, making it a natural distribution gateway, a huge advantage for logistics and retail distribution.

SC leverages this growth with a robust transportation infrastructure—extensive rail networks and one of the nation’s busiest seaports in Charleston.

The expansion of the Panama Canal was a game-changer for South Carolina’s logistics and trade industries. When the Panama Canal completed its expansion in 2016 to allow larger ships, East Coast ports like Charleston gained direct access to bigger volumes of Asian and Latin American trade.

South Carolina moved quickly to capitalize on this opportunity: the Port of Charleston undertook a harbor deepening project to become the deepest harbor on the East Coast. The harbor was deepened from 45 to 52 feet. The expansion of the Panama Canal enhanced South Carolina’s logistics and trade sectors by allowing giant cargo ships to deliver goods to the Port of Charleston. Much of this cargo doesn’t stay at the port—it heads inland to distribution hubs.

The Inland Port in Greer (near Greenville-Spartanburg) has boomed, with freight trains shuttling containers between the coast and the Upstate. In fact, as soon as the canal opened its new lane for bigger ships, much of the cargo they carried was headed for South Carolina’s Upstate region, where farmland rapidly gave way to immense warehouses and industrial parks.

Over six million square feet of warehouse space has been developed in recent years to handle the influx of goods, creating a surge in trucking, logistics, and fulfillment centers.

This expansion created direct jobs in warehousing and transportation, bolstered manufacturing (since exporters can more easily ship out products), and attracted new businesses. Global companies see South Carolina as an ideal base to import raw materials and distribute finished goods throughout the Southeast.

The expanded Panama Canal effectively plugged South Carolina into global trade routes and the state’s employment growth.

Small and Local Businesses

While big industries and headline-grabbing investments often steal the spotlight, the foundation of South Carolina’s employment growth is also built on small, local businesses.

South Carolina maintains a thriving small-business ecosystem. 99.4% of South Carolina businesses are classified as small businesses, and together they employ about 43% of the state’s workforce.

South Carolina’s business-friendly climate—with relatively low taxes and regulations has nurtured entrepreneurship and the growth of these local businesses.

Conclusion: The Story Behind South Carolina’s Employment Growth

South Carolina’s employment growth isn’t due to one single factor—it’s the result of a confluence of positive trends.

A pro-business environment and strategic location have attracted major industries in advanced manufacturing and logistics.

The rise of tech jobs is diversifying the economy and accelerating the state's economic growth. South Carolina's population boom also provides a workforce and increased demand for goods and services.

Global developments like the expanded Panama Canal have played a part in routing more trade and jobs into the state.

Meanwhile, the backbone of South Carolina's economy—its local businesses and entrepreneurial spirit—helps disperse growth across communities of all sizes.

The outcome of these factors is a virtuous cycle: companies invest and hire, and people move in for opportunities, spurring more investment and job creation.

There are also still some challenges to overcome. For example, there is a need for continued worker training and infrastructure to keep up with growth, but the state appears to be addressing these proactively with workforce programs and expansion projects.

To learn how South Carolina’s economic momentum can support your next project, contact Streams Development today. Headquartered in Greenville, SC, we specialize in apartment communities, self-storage developments, and build-to-suit service retail across the Southeast.

As one of the largest and most experienced development firms in the Carolinas, Streams Development has led projects in over thirty states—from Alaska to Puerto Rico and California to New Jersey.