Friday, August 19, 2022

Georgia’s July unemployment rate: Nothing to see here

 Georgia Nonfarm Employment

Georgia’s unemployment rate in July came in at 2.8%, statistically unchanged from the prior month while remaining below the national unemployment rate of 3.5%.

The unemployment rate is calculated by comparing the number of unemployed to the state’s labor force, and both numbers showed very little change over the month. The number of employed persons in the state was statistically unchanged as well.

In July 2021, the state recorded an unemployment rate of 3.9%, so this month’s rate is statistically much lower than its year-ago level.

Concerningly, the state’s labor force growth has slowed significantly since the beginning of the year, even as initial claims for unemployment continue to decline in the state.

Even as labor force growth slows, the state’s labor market remains strong. Nonfarm employment for July totaled 4,812,100, another record, although the increase over the month (12,500) was not statistically significant.

From July 2021 to July 2022, Georgia has seen an increase of 214,300 nonfarm jobs for a 4.7% growth rate.

With Atlanta posting an inflation rate of 11.5% (as of June), it remains to be seen whether pressures on household budgets due to increasing costs may push people back into the labor force.

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