Georgia’s job market showed signs of stagnation even as the state’s unemployment rate stayed at a low 3.0% in December 2022.
Although Georgia has seen a strong rebound in jobs since the losses in the first half of 2021 due to Covid-related layoffs and shutdowns, much of those gains occurred earlier in the year.
While the unemployment rate has stayed in a narrow range of
2.8 to 3.0% in the second half of the year, the state’s labor force has edged
downward. Since June, 32,185 people have left the labor force and so are no
longer working or actively seeking work in Georgia.
As a result, the unemployment rate stays low even as the
number of workers employed fell by 34,312.
The state’s employment-population ratio in December came in
at 59.7, the lowest recorded for any month in 2022 and just above the 59.6
recorded in December 2021.
Private sector employment
Georgia Private Sector Jobs, One-month Change, 2021-2022
The state’s private sector recorded a 4,800 job increase in
December, a marked improvement over the 3,500-job loss recorded in the October-November
two-month period, but behind all previous months in 2022.
For the second half of 2022, the private sector in the state
added 40,800 jobs, the slowest growth since 2019.
Even in 2021, when the state was hit with Covid-related
layoffs and shutdowns, second half growth was sufficiently robust to offset
some of the losses in the first half of the year.
Private sector employment makes up nearly 86% of the state’s
nonfarm jobs, so the state’s economy is dependent on private sector job growth.
When private sector jobs slow down, it affects Georgia’s overall economy.
It is tempting to say that the state’s job market slowdown
can be attributed to running out of workers, but the drop in the state’s labor
force makes that statement questionable.
It appears that potential employees are choosing to stay out
of the job market for a variety of reasons which may include issues related to
childcare, the level of wages offered by employers, and a portion of older
workers who lack the incentive to seek jobs and choose retirement instead.