Showing posts with label georgia layoffs. Show all posts
Showing posts with label georgia layoffs. Show all posts

Thursday, December 15, 2022

Georgia sees unexpected jump in layoffs and discharges in October

After a number of months of improvements in the state’s labor market, Georgia saw a sudden reversal in October with the number of layoffs and discharges jumping to 60,000 from 43,000 in the prior month, according to new information released by the U.S. Bureau of Labor Statistics.

In contrast, the number of job openings, hires, and total separations (including quits) were statistically unchanged over the month.

Over-the-year changes in Georgia

In October, the number of job openings in the state stood at 400,000 compared to 426,000 a year ago.

The state recorded 241,000 hires in October compared to 253,000 in the same month last year.

Total separations, which includes quits, retirements, and involuntary separations, were 241,000 as opposed to 215,000 last year. Within the total separations category, 173,000 people chose to quit their jobs in October compared to 143,000 for the same month a year ago. Layoffs and discharges were 60,000 compared to 55,000 last year at the same time.

Nationally, layoffs and discharges netted an increase of 58,000 over the month. Tennessee was the only other state that recorded a significantly large number of involuntary separations in October with layoffs and discharges totaling 24,000 over the month.

One month’s data are not sufficient to establish a trend, but Georgia’s labor market has been very robust even when compared to national trends. Employers have been struggling to find and retain workers with the state’s unemployment rate at 2.9%, so any increase in layoffs and discharges needs to be watched carefully to see if employers’ labor needs have peaked.

Thursday, November 17, 2022

Fewer people quit, were laid off or fired in Georgia; job openings and hires remained essentially unchanged over the month

Job openings and hires in Georgia showed no significant change from August to September, according to new information released by the U.S. Bureau of Labor Statistics. Total separations declined significantly over the month as fewer people quit their jobs and employers laid off or discharged fewer workers.

Nationally, the job openings and hire rates were little changed in September, while the total separations rate decreased.

Job openings and hires

In September, job openings totaled 402,000, up from 391,000 in August but down from the 410,000 recorded a year ago. While announcements of job openings rose, the number of actual hires totaled 264,000 compared to 275,000 in August. In September 2021, the number of hires were 266,000. Neither the change in the number of job openings or hires over the month were statistically significant according to BLS.

Job openings and hires can be indicators of the level of optimism on the part of employers about future economic conditions. When employers are optimistic about future prospects, they tend to post more openings and hire people. As employers become more pessimistic about the future, the number of job openings and hires tend to decline.

Separations

The number of people leaving their jobs in September, both for voluntary and involuntary reasons, dropped by 64,000 in September to 224,000, the lowest level since last October.

BLS noted that the change in total separations, quits, and layoffs and separations over the month were statistically significant.

People choosing to quit their jobs declined by 19,000. Workers deciding to quit their jobs either to move to another employer or to drop out of the labor force can indicate their degree of optimism about their future economic conditions. When workers are optimistic about future opportunities, they are more willing to voluntarily leave their current job. As workers become more pessimistic about the future, the number of workers choosing to quit tends to decline.

Most of the decline in total separations in September was due to a 45,000 decrease in the number of layoffs and discharges. The number of layoffs and discharges in September totaled 41,000 compared to 63,000 last year. 

The low number of layoffs and discharges may indicate that employers are reluctant to lose workers, because they need their current level of workers to maintain production and are concerned about their ability to replace them with other workers.

Wednesday, August 17, 2022

Job openings and quit numbers turn positive in June for Georgia as layoffs and discharges decline

The number of job openings posted in Georgia rebounded in June, rising by 51,000, according to new information from the U.S. Bureau of Labor Statistics. The number of job openings for May was revised up to 376,000 from a preliminary count of 367,000

Job openings totaled 427,000 compared to 368,000 recorded a year ago, an increase of 9.3%. The job openings rate rose to 8.2 in June, up from a revised 7.3 in May.

The number of hires were statistically unchanged over the month and over the past year.

While the total number of separations were virtually unchanged over the month, the number of people choosing to leave their positions rose while the number of layoffs and discharges declined.

Quits rose by 27,000 in June to a total of 211,000, the same number of quits posted in June of 2021. The quit rate in June came in at 4.4, up from 3.8 in May but below the 4.6 rate recorded the prior year.

Layoffs and discharges declined by 24,000 in June to a level of 42,000 in the month. The layoffs and discharges rate dropped from 1.4 in May to 0.9 in June. The number of layoffs and discharges occurring over the month was the lowest level recorded since May 2019.

Over the past 12 months, the number of layoffs and discharges in the state have declined by 21,000.

The increase in job openings can be taken as a proxy for increasing business optimism, while the number of quits can be a proxy for increased optimism among employees who feel more confident about finding another position. 

Companies seeing better business conditions in the state along with an increasing number of employees leaving their jobs voluntarily is resulting in less need for layoffs and discharges and generally reflect more robust economic conditions in Georgia. 

Thursday, June 30, 2022

Atlanta unemployment rate up in May; number of quits in Georgia rises in April

 

The Atlanta area’s unemployment rate in May rose to 2.6%, up from 2.4% in April, although still steeply below the 4.0% recorded in May 2021.

For May, the number of people employed in the Atlanta area declined by 7,620 as the number of people unemployed rose by 7,075. The number of people in the Atlanta area’s labor force was essentially unchanged over the month.

BLS revised its report for April with the number of those dropping out of the labor force increasing by 1,088 and decreasing the number employed by 1,020.

Compared to May 2021, the Atlanta area’s labor force has increased by 90,137, while the number of unemployed in the area declined by 39,947.

State Labor Turnover

Georgia saw a significant increase in the number of people quitting their jobs, while layoffs and discharges decreased between March and April 2022, according to newly released information from the U.S. Bureau of Labor Statistics.

The number of people choosing to quit their jobs in the state rose from 168,000 in March to 185,000 in April with the rate increasing from 3.5 to 3.9.

The number of workers faced with layoffs and discharges declined from 77,000 in March to 54,000 in April with the rate dropping from 1.6 to 1.1.

From March to April, the number of job openings, hires, and total separations were little changed for Georgia.

State Labor Turnover April 2021 to April 2022

Over the past year, the number of job openings in Georgia rose from 338,000 to 419,000 with the rate rising from 7.0 to 8.1.

Hires in the state increased from 249,000 to 271,000 as the rate of hiring increasing from 5.5 to 5.7.

Total separations rose from 252,000 to 260,000 with the rate with the rate virtually unchanged over the year.

Within total separations, those choosing to quit their jobs shifted from 181,000 to 185,000 with the rate virtually unchanged over the year.

Layoffs and discharges dropped from 57,000 to 54,000 as the rate changed from 1.3 to 1.1.


Friday, November 19, 2021

Georgia workers experience higher levels of layoffs and discharges in September; fewer workers leave their job voluntarily

 In September, the number of job openings posted by employers and the number of hires were little changed from August, while the number of people quitting their jobs declined.

Job openings and hires

Georgia reported 415,000 job openings as of the last day of September as compared to 416,000 job openings reported for the last day in August. The September job openings rate stood at 8.3 percent. The national openings rate stood at 6.6 percent.

Georgia employers hired 253,000 workers in September, compared to 255,000 hired in August. The September hire rate was 5.5 percent as compared to the national rate of 4.4 percent.

In September 2020, there were 246,000 job openings in Georgia on the last day of the month. Employers hired 215,000 workers during the month of September 2020.

Separations and quits

Total separations in Georgia reached 245,000 in September with a separations rate of 5.4 percent. Nationally, the total separations rate stood at 4.2 percent.

Within total separations, workers choosing to leave their jobs voluntarily (quits) totaled 168,000 compared to 195,000 in August. The quits rate for September fell to 3.7 percent, down from 4.3 percent in August, For the nation, the September quits rate was 3.0 percent.

Although the number of quits decreased in September, the state remains on track for a record number of job quitters this year. In the first nine months of 2021, 1,427,000 workers have quit their jobs outpacing any other year since the start of the series in 2000.

The number of separations due to layoffs and discharges rose in September to 59,000, up from 42,000 in August. The layoffs and discharge rate increased to 1.3 percent in September, up from 0.9 percent in August. Nationally, the layoffs and discharge rate remained unchanged over the month at 0.9 percent.

About the Job Openings and Labor Turnover Survey 

Definitions and Methodology (National/State). Shared definitions and procedures for National and State JOLTS Estimates can be found at: www.bls.gov/news.release/jolts.tn.htm. 

Job openings include all positions that are open on the last business day of the reference month. The job openings rate is computed by dividing the number of job openings by the sum of employment and job openings and multiplying that quotient by 100. 

Hires include all additions to the payroll during the entire reference month, including newly hired and rehired employees; full-time and part-time employees; permanent, short-term, and seasonal employees; employees who were recalled to a job at the location following a layoff (formal suspension from pay status) lasting more than 7 days; on-call or intermittent employees who returned to work after having been formally separated; workers who were hired and separated during the month, and transfers from other locations. The hires rate is computed by dividing the number of hires by employment and multiplying that quotient by 100. 

Total Separations include all separations from the payroll during the entire reference month and is reported by type of separation:  quits, layoffs and discharges, and other separations. Quits include employees who left voluntarily with the exception of retirements or transfers to other locations. Layoffs and discharges includes involuntary separations initiated by the employer including layoffs with no intent to rehire; layoffs (formal suspensions from pay status) lasting or expected to last more than 7 days; discharges resulting from mergers, downsizing, or closings; firings or other discharges for cause; terminations of permanent or short-term employees; and terminations of seasonal employees (whether or not they are expected to return the next season). The separations rate is computed by dividing the number of separations by employment and multiplying that quotient by 100. The quits and layoffs and discharges rates are computed similarly.

Thursday, August 13, 2020

How bad is Georgia hurting? State receives first $85 million installment of $1.1 billion loan request for unemployment trust fund

 

In June, the Tax Foundation published a study of state unemployment insurance trust funds. 
Georgia ranked at #21 out of 50. Since then, the picture has continued to deteriorate.
Map Source: Tax Foundation

Before March, Georgia looked to have one of the more solvent unemployment insurance trust funds. 

That is no longer true, as Georgia is receiving an $85 million loan to replenish its unemployment trust fund, which is quickly running out of cash as the state’s insured unemployment rate remains elevated.

The funds are the first installment of a $1.1 billion request made to the U.S. Department of Treasury by Governor Kemp, as reported by The Center Square

Figures from the most recent Unemployment Insurance Weekly Claims report published by the U.S. Department of Labor shows that 633,988 people in Georgia were receiving unemployment insurance benefits as of July 25, 2020, in contrast to the 25,618 people who received them a year ago. 

As of the end of July, the state’s insured unemployment rate stood at 14.4%. 

The Georgia Department of Labor announced that as of July 28, 2020, the trust fund balance was $585,483,621, down $1.962 billion, or 77 percent, from the March 24 balance of $2,547,476,454.  

Last month, Governor Kemp as the U.S. Department of Treasury to loan Georgia $85 million in August, $585 million in September, and $430 million in October. The current loan is the first installment related to that request. 

States that receive loans are expected to repay that money to the U.S. Treasury by either increasing state’s payroll tax on employers or from general funds. 

Interest is usually paid from the state’s general fund, and payroll taxes will most likely increase, potentially hurting workers and employers, Greg Georgia, director of the Center for Economic Analysis at Middle Georgia State University, told The Center Square. 

"When the state has to borrow money to supplement that fund now, that's probably general fund spending," George said. "So, it's just a way of spreading the pain to the broader taxpayer base." 

In June, the Tax Foundation conducted an analysis of the solvency of states’ unemployment insurance trust funds and noted that Georgia ranked 21st in its solvency level at 1.25. Any state with a solvency level of 1.0 or greater was deemed to have unemployment insurance sufficient to weather a recession. 

California ranked worse at number 50 with a solvency level of 0.21, while Vermont controlled the most solvent of the state trust funds with a solvency rank of 2.53. 

Despite the high number of claims being paid weekly by the Georgia Department of Labor, there are still accusations that the department has failed to pay all claims dating back to the middle of March. 

The state says it has paid benefits on 92% of valid claims since March. 

“As additional claims are being filed, we have been able to maintain an impressive ratio of eligible claims filed to payouts,” said Labor Commissioner Mark Butler. “Record breaking payout rates represent a new standard for this department as we strive to better serve Georgians.”


Monday, July 20, 2020

Job openings and separations in Georgia, 1st Quarter 2020


Compared to the nation, at the end of March, Georgia recorded a higher level of job openings, hires, and quits while posting a lower rate of total separations.

Experimental state-level data provided by the U.S. Bureau of Labor Statistics suggests that the Coronavirus (COVID-19) pandemic impact started later in the state than in the nation as a whole.

Job Openings

In the 1st quarter of 2020, Georgia recorded 656,000 employment openings compared to 680,000 in the 1st quarter of 2019.  Job openings for the first two months of 2020 were comparable to those in the first two months of 2019 but then dropped by 27,000 in March of 2020 compared to March 2019.

The state’s openings rate stood at 4.3% at the end of the 1st quarter compared to a 4.9% rate in the 1st quarter of 2019.

At the end of March, the national job openings rate stood at 3.7%.

Hires

The number of hires increased by 15,000 in the 1st quarter compared to the 1st quarter of the previous year. Hiring remained steady throughout all three months of 2020.

The hiring rate at the end of March stood at 3.7%, the same as at the end of March 2019.

Nationally, the hire rate ended the quarter at 3.1%.

Separations

Total separations include quits, layoffs and discharges, and other separations. Total separations is
referred to as turnover. Quits are generally voluntary separations initiated by the employee. 

Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs. Layoffs and discharges are involuntary separations initiated by the employer.

Separations totaled 638,000 in the 1st quarter with separations rising each month in 2020 compared to the same three months in 2019. Separations in the 1st quarter of 2019 equaled 516,000.

At the end of March, the total separations rate was 5.4% compared to 3.7% in March 2019. For the nation, the total separations rate at the end of the 1st quarter was 9.3% compared to a 3.3% rate in March 2019.

Both the number of quits as well as layoffs and discharges in Georgia rose each of the first three months of 2020 compared to the first three months of 2019.

For the 1st quarter of 2020, the number of quits equaled 349,000, while the number of layoffs and discharges came to 258,000.

For the 1st quarter of the previous year, the number of quits totaled 315,000 while the number of layoffs and discharges reached 157,000.

At the end March 2020, the quits rate was 2.4%, the same as in March 2019, while the layoffs and discharges rate rose to 2.8% compared to 1.1% in March 2019.

For the nation, the quits rate stood at 1.6% and the layoffs and discharge rate was 7.4% at the end of March.

About state-level JOLTS data

Job Openings and Labor Turnover Survey (JOLTS) estimates are based on a national sample of approximately 16,000 establishments. These data are used by policymakers, academics, industry experts, economists, and others to better understand the current state of the U.S. economy and to understand the dynamic activity of businesses in the economy that lead to aggregate employment changes.

While the current national sample size is designed to support estimates for major industries at the national level and total nonfarm estimates at the regional level, the Bureau of Labor Statistics (BLS) is currently researching the possibility of leveraging the sample to produce model-assisted estimates at the state total nonfarm level. These estimates are currently identified as experimental as updates to the models are incorporated into this new data series.

BLS is encouraging data users to review these estimates and provide input on both the technical aspects of the models and on the usability of the resulting data.

More information can be found at https://www.bls.gov/jlt/jlt_statedata.htm.

Table A. Job openings, hires, quits, layoffs and discharges, and total separations rates for United States and Georgia, as of March 2020


Rates in Percent
Area
Job Openings Rate
Hires Rate
Quits Rate
Layoffs & Discharges Rate
Total Separations Rate
United States
3.7
3.1
1.6
7.4
9.3
Georgia
4.3
3.7
2.4
2.8
5.4