12-month job growth falls below
100,000 for first time in 17 months
Georgia saw the creation of 6,400 net new jobs in July 2015,
according to preliminary seasonally adjusted data released today by the Georgia
Department of Labor.
The new information also included a revision that wiped out
all the jobs reported in the prior month.
In June, the labor department announced
that 2,300 jobs were added. With the revision, it is now reporting that the
state actually lost 4,100 jobs in June.
Among industries in the state in July, retailing (+2,800),
professional and business services (+3,100), and local government (+4,300) were
significant contributors to the state’s job growth.
Losses occurred mainly in private educational services
(-2,100) and state government (-2,400).
Annual job creation
slows
For the 12 months ending in July, the state saw 89,400 jobs
created, an increase of 2.1 %.
As a result of slower employment growth, 12-month job growth fell below 100,000 for the first time in 17 months. July marked the first time since the beginning of 2013 that state
job growth did not exceed the national average.
In some states, like North Dakota, their jobs slowdown can
be partially attributed to falling oil prices that have resulted in layoffs in
oil and gas production. Since Georgia has little oil and gas, its employment
is unaffected by reductions in oil and gas production, and the state’s economy should be benefiting
from lower energy costs. Instead, it is recording a marked slowdown.
Metro Areas are key
The Atlanta metro area created 13,200 jobs in July, and the Savannah area saw another 2,000 jobs added. Other metro areas with positive job growth included Albany (+400), Athens (+100), Brunswick (+100), Columbus (+600), Dalton (+200), and Rome (+100).
Metro areas reporting seasonally adjusted declines in July included Augusta (-500), Gainesville (-1,000), Hinesville (-300), Macon (-1,000), and Valdosta (-700).
While the Atlanta metro area is home to approximately 61 %
of jobs in Georgia, it has been responsible for almost 85 % of the state’s job
growth over the past 12 months.
Unemployment rate
The state’s unemployment rate stood at 6.0 % in July
compared to 7.3 % in July 2014 as the state’s labor force continues to shrink.
While many see a lower unemployment rate as a positive sign
for the economy, when drops occur due to people leaving the labor market, it
can be a negative indicator.
