By the Numbers
Georgia’s December unemployment rate = 8.6 percent.
Georgia nonfarm jobs = 14,400 added in December; 74,100 jobs added in 2012.
Compared to past years, Georgia had a better year, both in its decline in unemployment rate and its increase in the number of nonfarm jobs, but the unemployment rate slowed in December, and even with a good December jobs number, the state is a long way from its numbers prior to the Great Recession.
State Unemployment
Preliminary seasonally-adjusted data for Georgia shows that the state ended 2012 with an unemployment rate of 8.6 percent, well below its December 2011 rate of 9.4, but still above the 7.8 percent unemployment rate recorded for the nation in December 2012.
It looked like the state was picking up momentum on the jobs front until the December numbers appeared. Not only did the unemployment rate remain essentially unchanged, but the number of unemployed people in the state actually rose.
(The difference between November’s 8.5 percent unemployment rate and December’s 8.6 percent is statistically insignificant, despite headlines in the media saying the rate had “risen.”)
For the year, the state’s labor force rose by 64,384 as 31,413 fewer people were recorded as unemployed and 95,797 more people found work in the state, which is certainly welcome news for job seekers and shows a slight tightening of the job market, although it will hardly be noticeable except at the margins.
There were two peak periods during the year for drops in the number of unemployed. In the first quarter of 2012 unemployment dropped by 19,467 over the first three months, followed by September-October-November period when 29,487 fewer people were recorded as unemployed.
This would look like good news, but the marked slowdown in December offsets some of the good numbers in the previous three months, as unemployment rose in December 2012 by 4,742 people. This month, plus the May through August increases, offset some of this good news early and late in the year.
Nonfarm employment
Preliminary nonfarm employment numbers for the state show that Georgia added 74,100 jobs in 2012, the state’s best showing since 2006. On average, 6,200 jobs were created in the state each month during 2012, compared to 3,100 jobs in each month of 2011.
Jobs grew in the state by 1.9 percent outpacing the nation’s growth rate of 1.4 percent. The annual numbers were helped by a strong December figure, as there were 14,400 jobs added in the state in December, noticeable pick up from November’s loss of 400 jobs.
A good dent, but again, still a long ways from making up for the 324,000 in job losses that occurred in 2008 and 2009.
The calendar year increase would have been greater if not for losses in construction jobs (-3,600) and in government jobs (-10,400).
The construction sector continues to suffer, showing a 2.5 percent decrease over the year. With total employment of only 139,400 at the end of the year, you have to go back to 1993 to see employment at this level for December in the construction industry in Georgia.
Government employment dropped 1.5 percent in the state in 2012, as Federal employment declined by 2,600 jobs, state employment dropped 2,600 jobs and local government erased 5,200 jobs.
As a percentage of employment, the Federal drop was the most significant, declining 2.5 percent over the year.
With the possibility of more budget cuts at the Federal level, it is unlikely that this sector will be a significant employer for some time to come.
The state’s information sector had the largest percentage increase in 2012, up 4.9 percent (4,700 jobs), while professional and business services net jobs increased the most at 24,300 (4.4 percent).