Sep. 19--South Carolina's double-digit jobless rate eased last month, but economists said the move is likely a temporary dip before what will be a long, exhausting job-market recovery.

The statewide unemployment rate fell in August to 11.5 percent, the second consecutive monthly decline and a significant decrease from a peak of 12.1 percent hit in May and June.

July's rate, announced at 11.8 percent, was revised to 11.7 percent.

Dorchester County's rate increased slightly to 10.2 percent, while Berkeley County's figure decreased from 10.9 percent to 10.6 percent. Charleston County's rate remained at 9.1 percent.

The latest figures show that the state's job count increased by about 14,300 positions as school districts began staffing up for the academic year.

The increase fits in with seasonal hiring trends.

Despite the monthly gain, South Carolina businesses still employ collectively 78,900 fewer workers than a year ago. And August's slight decline is probably a temporary phenomenon caused by workers who are still unemployed but no longer factored into the rate.

Myrtle Beach research economist Don Schunk pointed out that roughly 28,000 South Carolina workers have "dropped out" of the labor force in recent months, likely after a frustrating and unsuccessful job search, he said.

Some may have retired or moved to other states.

If those workers were factored into the latest figures, August's unemployment rate would have probably weighed in at 12.6 percent by Schunk's estimate.

That's why Schunk, Federal Reserve Chairman Ben Bernanke and other respected economists predict that the rate will rise again in a few months following an infusion of previously discouraged workers.

"They'll start to hear some reports that some companies are starting to hire again and the economy is starting to improve, and they'll start filling out applications again and start actively looking for work again," Schunk said.

"Imagine if those 28,000 workers got back into the workforce but there are only 5,000 new jobs."

The Charleston area's unemployment rate didn't fall in step with the statewide numbers. It remained unchanged at 9.7 percent because of retail and tourism-related job losses totaling about 1,700 positions.

Those seasonal losses were slightly offset by a healthy, 1,100-job gain in the so-called professional and business- services category, a hodgepodge of job types not dominated by a particular industry.

Jobs through temporary hiring agencies are counted in that category, and some staffing firms have reported an uptick of activity in recent months.

James Taylor, regional manager at Robert Half International's Charleston branch, said a growing number of companies have called to ask about temporary help through his firm, which specializes in accounting and administrative positions.

"A lot of companies have reduced their head count, and in many cases they're finding they laid off too many people," Taylor said.

More broadly, temporary agencies often see more business in a recovering economy because business owners are often cautious about hiring new workers, he said.

The latest index from the American Staffing Association shows that the demand for temporary and contract workers "increased markedly from July to August," a possible sign that the economy is emerging from recession, the agency noted.

"Most of the managers are looking for evidence of a stronger economy before expanding their teams on a full-time basis," Taylor said. "There's still a lot of uncertainty."

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