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COLUMBIA, S.C. (AP) -- Economists say the new year will continue to bring South Carolina bleak financial news.

Experts who gathered in Columbia on Wednesday are forecasting the state will lose 22,000 jobs next year. The unemployment rate hit a 25-year high of 8 percent in October and economists say it will reach 8.6 percent in 2009.

Construction and manufacturing jobs are still in danger and researchers say improvements won't be seen until the middle of the year.

Meanwhile, the state's spending and tax laws also are being criticized.

University of South Carolina economist Doug Woodward says South Carolina has one of the nation's worst budget problems. Since July, economists have slashed more than $700 million from the revenue projections for a $7 billion state budget.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

Economist Doug Woodward kicked off USC's Economic Outlook Conference on Wednesday by saying there's never been a time when the state's economic outlook was more uncertain.

Woodward said South Carolina's is lumped with California and New Jersey in having the nation's worst budget problems. Since July, economists have slashed more than $700 million from the revenue projections for a $7 billion state budget. State spending already has been cut more than $600 million to cover that.

Woodward says things will only get worse as the state sees more problems from the recession that officially began a year ago and is projected to extend into mid-2009.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

►  Job Growth: Only two metropolitan areas posted positive job growth in 2008 (through September, compared with job activity through September 2007): Spartanburg (2.1 percent) and Greenville (0.5 percent). In the rest of the state, employment was down: Anderson (-2 percent), Columbia (-1.3 percent), Myrtle Beach (-1.2 percent) and Charleston (-0.6 percent). Florence was even, with no increase or decrease.

►  Residential Construction: Across most areas of South Carolina, residential construction activity plummeted again in 2008 after a generally bad year in 2007. Residential construction (measured by square footage) through September 2008, when compared with activity through September 2007, dropped 60 percent in Sumter, 48.4 percent in Anderson, 48.1 percent in Myrtle Beach, 47.1 percent in Florence, 46.2 percent in Charleston, 41.1 percent in Spartanburg, 34.1 percent in Columbia and 26.1 percent in Greenville.

►  Retail Sales: Areas posting the best retail sales growth in 2008 (through September): Anderson (9.5 percent), Florence (8.4 percent) and Greenville (5 percent). Retail sales in Columbia grew by 2.3 percent and in Charleston by 1.8 percent, but retail sales were down in Sumter (- 3.8 percent) and Myrtle Beach (-3.5 percent).

►  Unemployment: The unemployment rate in September 2008 was 8.8 percent in Sumter (up 1.5 percent compared to September 2007), 8.1 percent in Florence (up 1.7 percent), 7.3 percent in Spartanburg (up 1.3 percent), 7.1 percent in Anderson (up 1 percent), 6.9 percent in Myrtle Beach (up 2 percent), 6.4 percent in Columbia (up 1 percent), 6.3 percent in Greenville (up 0.9 percent) and 6.1 percent in Charleston (up 1.3 percent).

THE FULL REPORT WILL BE AVAILABLE HERE.