Aug. 21--The Grand Strand's jobless rate improved in July compared to June, but remained significantly higher than the same month a year ago, according to statistics released this morning.

Horry County's rate dropped to 10.4 percent in July from 11.3 percent in June -- compared to 6 percent in July 2008.

In Georgetown County, where more than 200 people lost their jobs this summer with the shut down of the ArcelorMittal steel mill, the jobless rate ticked up to 12.2 percent in July, compared to 12.1 percent in June and 7.1 percent in July 2008.

Statewide, the jobless rate showed its first improvement since January 2008, according to the S.C. Employment Security Commission. The rate dropped to 11.8 percent in July, compared to 12.1 percent in June.

The national rate also improved slightly, dropping to 9.4 percent in July from 9.5 percent in June.

Despite the drop in rates, the labor market continues to show weakness with a lack of job growth coupled with greater numbers of discouraged workers, said Don Schunk, a research economist at Coastal Carolina University.

The improvement in the rates might be deceiving, officials say, because many unemployed residents may have just given up looking for work, taking them out of the statistics.

"The data trends indicate that people in South Carolina left the labor force for the second month in a row," Ted Halley, executive director of the state Employment Security Commission, said in a statement. "There is concern that people are becoming more discouraged over job prospects in the short term and are giving up the job search."

The jobless situation is worse than the numbers show, Schunk said.

"These discouraged workers drive the official unemployment rate down, while broader measures of unemployment that include these discouraged workers will remain high," he said in a statement.

Most of the job losses were in education. Retail, manufacturing and construction also shed the most jobs, while hospitality and financial services added jobs, according to the commission.

The state's labor force dropped nearly 10,000 in July to the lowest level since November 2008.

In the coming months, more discouraged workers will likely drop out of the labor force, keeping a lid on the jobless rate, Schunk said. But when those people start looking for work again and are added back into the statistics, the jobless rate likely will rise, he said.

"I continue to expect that the pace of growth during the coming recovery will be insufficient to generate strong job growth and lower unemployment," Schunk said in a statement.

Jobless workers in North Carolina gained no ground in July as they struggled against a statewide unemployment rate that stayed flat at 11 percent.

The state's Employment Security Commission this morning reported that July's unemployment rate stayed unchanged from June. July marks a sixth consecutive month the state's jobless rate hovered above the previous historic high.

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