Showing posts with label georgia job creation. Show all posts
Showing posts with label georgia job creation. Show all posts

Saturday, April 18, 2020

Georgia’s labor market tells a tale of two surveys in the 1st quarter of 2020


Georgia Unemployment Rate, 2018-March 2020, seasonally adjusted
Georgia posted meager 1st quarter employment growth but not due to the coronavirus based on a survey of establishments in the state, while the household survey showed definite signs of the impact of the coronavirus on labor activity.

The State of Georgia gained 5,000 jobs in the 1st quarter of 2020, an 85% decline from its job gains in the 1st quarter of 2019 according to the survey of businesses and government agencies.

At the same time, the state’s unemployment rate remained at 3.1% in January and February before jumping to 4.2% in March a rate not seen in the state since 2018.

The Georgia governor’s “stay-at-home” order was not effective until April 3rd, so the small job gains must be attributed to a general slowing of the state’s economy rather than to the effects of the state’s order.

It is possible that some people were curtailing their economic activities even before the order became official resulting in a slowdown and layoffs, which may account for the increase in the number of unemployed reported in the household survey.

Establishment survey

All three months (January, February, and March) showed smaller results than for the same months a year ago.

The Atlanta metro area gained 2,200 jobs over the quarter that includes a 500 job gain in the month of March. The 1st quarter gain represents a 92% decline from the 1st quarter of 2019 when the area recorded increases of more than 27,000 jobs.

The other 12 metro areas in the state combined to a net loss of 900 jobs in the 1st quarter compared to a gain of 3,000 in the 1st quarter of 2019.

The trend in the numbers along with the fact that the Atlanta area posted a job increase in March despite illnesses associated with Covid-19 in the metro area indicates that the survey of businesses and government agencies did not reflect any effects from the coronavirus in the establishment survey.

Establishment survey by industry

Health care and social assistance posted a 6,000 job increase over the quarter, slightly below the 6,500 job gain in the 1st quarter of 2019.

The increase was partially offset by a 1,700-job loss in the leisure and hospitality sector and a 1,300-job loss in manufacturing. Professional and business services remains the largest sector in the state despite having a net loss of 200 jobs over the quarter.

Establishment survey by area

After Atlanta, the Augusta area posted the next highest job gain among the state’s metro areas, adding 900 jobs in the 1st quarter of 2020.

Areas posting significant job losses included Valdosta (-900), Dalton (-700), and Athens (-700).

Employment/unemployment

In contrast to the establishment survey that serves as the basis for the jobs data, the household survey told a very different story for the first quarter of the year.

In March, the number of unemployed in the state rose by 55,442 to a total of 216,589 people as compared to 187,625 in March 2019.

The number of employed persons dropped by 77,876 people according to the household survey, with a net loss 22,434 people listed as dropping out of the labor force.

As a result, the labor force participation rate declined to 62.1%.

Effects of the coronavirus on Georgia’s labor market

The state was relatively slow in implementing procedures to mitigate the effects of the coronavirus, which explains the small effect on 1st quarter job growth.

For example, the arts, entertainment, and recreation sector, which is expected to experience a steep decline in employment due to the closing of many nonessential activities during the stay-at-home period, showed an employment increase of 1,500 jobs in the 1st quarter including a 400 job rise in the month of March.

It is expected that when the April establishment employment numbers are reported most of the industries and areas in the state will show significant declines compared to the 1st quarter of the year, and the state’s unemployment rate will continue to climb.

Whether these employment declines continue through the 2nd quarter depends on both how long the state’s stay-at-home order remains in place, and how confident people feel about returning to their normal activities.

Sunday, October 20, 2019

Georgia employment rebounds in the third quarter of 2019


Nonfarm employment in Georgia grew by 22,000 in the third quarter of 2019, rebounding from a disappointing 11,700 job gain in the second quarter of the year.

The state’s gain over the quarter was similar to the third quarter of 2018 when Georgia posted an increase of 22,100 jobs.

Over the past 12 months, employment in the state grew by 77,400 jobs to a total of 4,635,600. The increase of 1.7% over the past year shows a slowdown compared to September 2018 when the state had posted a 12-month increase of 97,200 jobs that translated to 2.2% job gain.

Georgia Nonfarm Job Growth, 3rd Quarter, 2014-2019

Source: U.S. Bureau of Labor Statistics

Private Sector and Government In Georgia

Compared to the second quarter of the year, both the private sector and government job markets showed significant improvement in the third quarter.

Private sector employment (excluding agriculture) grew by 17,300 jobs over the quarter compared to a 9,000-job growth in the second quarter, while government employment grew by 4,700 jobs compared to a 2,700-job improvement in the second quarter.

Private Sector Industries

Education and health services posted the largest employment gains in the third quarter, adding 6,900 jobs, followed by leisure and hospitality services, up by 3,900 jobs.

Although professional and business services employ the largest number of private sector workers (705,800), the industry grew by only 2,000 jobs over the quarter.

The dominance of education and health service jobs and leisure and hospitality jobs over professional and business services is a change for a state where business-to-business employment has been the main jobs engine for a number of years.

The professional and business services sector remains the largest private employment sector in the state but the trend is toward more consumer-focused industries such as healthcare and restaurants.

Due to several factors, healthcare plays a smaller role in the state’s mix of employment relative to the nation. As of September, health services accounted for 11.3% of the state’s jobs compared to 13.6% for the nation.

Industries recording losses over the quarter included construction (-400), wholesale trade (-800), information (-200), and financial activities (-100).

Metropolitan Areas

The Atlanta metro area continues to be the engine for job growth in the state. Over the quarter, the metro area added 14,700 (66.8%) of the state’s 22,000 nonfarm jobs.

Over the past 12 months, the Atlanta area accounted for 49,900 of the state’s 77,400 new jobs.

Outside Atlanta, other metro areas recording job growth in the third quarter included Albany (300), Gainesville (1,200), Hinesville (300), Rome (100), and Warner Robins (300). Areas recording declines in the third quarter included Augusta (-400), Brunswick (-100), Columbus (-300), Dalton (-100), Macon (-100), Savannah (-1,800), and Valdosta (-200). The Athens area showed no net change in jobs over the third quarter of the year.

For the 12 months ending in September, all metro areas in the state posted job gains except for the Columbus area that showed a drop of 600 jobs over the year.

Note: All data come from by the U.S. Bureau of Labor Statistics, are seasonally adjusted and are preliminary subject to revision.


Sunday, July 21, 2019

Georgia job creation slows in the second quarter


Job creation in Georgia slowed in the second quarter of 2019. Over the April-to-June period, 14,600 jobs were created in the state compared to 14,900 in the first quarter of the year. Compared to previous second quarters, 2019 saw the slowest job creation since 2011.
Data source: U.S. Bureau of Labor Statistics


Second quarter by industry


Professional and business services declined by 2,400 jobs offsetting a growth of 1,800 in the first quarter of the year. The second quarter was the first quarter in which the industry had posted a net loss of jobs since the first quarter of 2017.

Leisure and hospitality dropped 2,400 jobs after adding 8,200 jobs in the previous quarter. In the second quarter of 2018, the industry had added 500 jobs.

Wholesale Trade dropped by 2,000 jobs following a drop of 1,100 jobs in the first quarter. In comparison, the industry added jobs every quarter in 2017 and 2018.

Transportation, warehousing, and public utilities employment fell by 700 jobs adding to the 1,100-job loss in the first three months of the year. Prior to these two quarterly losses, the industry had added 10,200 jobs over the previous three quarters.

Health care and social assistance was a bright spot in the quarter with employment growing by 4,800, although this pace was below the 5,400 jobs created in the sector in the previous quarter.

Construction added 4,000 jobs in the April-to-June period after gaining 2,100 jobs previously.

Private sector employment accounted for 10,900 net job gains (nearly 75%) over the quarter with the remainder (3,700) new jobs created by federal, state, and local governments.

Total jobs reach a new record


Despite the slowdown in new jobs, the state posted a new record with 4,616,500 nonfarm jobs in June 2019.

The state’s unemployment rate in June stood at 3.7% in June 2019 compared to 3.9% in June 2018.

Sectors scoring their new highest levels of employment in June included retail trade (500,400) and financial activities (251,000), private educational services (83,600), and health care and social assistance (519,400).

Over the year, Georgia saw 80,400 jobs created for a 1.8% growth rate. The number of jobs created and the percent increase in June compared to the previous 12-month period was the lowest since 2013 when the state saw 68,800 new jobs in June and a growth rate of 1.7%.



All data are seasonally adjusted and reflect preliminary information provided by the U.S. Bureau of Labor Statistics.