State's unemployment rate ranks No. 2 in nation

(AP) - South Carolina's unemployment rate dropped slightly in January to 6.4 percent, but was the second-worst figure in the nation, officials said Thursday.

The January rate dropped from December's 6.5 percent, which was still well above the national rate of 4.6 percent.

Cherokee County's rate rose from 8 percent in December to 8.4 percent, 21st in the state.

Michigan had the highest unemployment rate at 6.9 percent in January, according to the Bureau of Labor Statistics. South Carolina was tied for second with Alaska.

The national rate increased slightly from 4.5 percent in December.

The number of nonfarm jobs in South Carolina dropped about 32,500 during January, led by a loss of almost 10,000 in retail trade as the Christmas shopping season came to an end.

But the economic picture is brighter than the figures indicate, said Joel Sawyer, a spokesman for Gov. Mark Sanford.

''We're always concerned about the number of folks who don't have a job in South Carolina,'' Sawyer said. ''We don't feel the numbers reflect what's going on in South Carolina's economy.''

Sawyer said almost 150,000 more people are working than when Sanford took office.

South Carolina's rate was down from 6.6 percent a year ago.