Source: Wells Fargo Securities, LLC Economics Group
State Employment Is Improving, but Few Surprises in Revisions
Georgia’s economy continues to see gradual improvement as employment
has risen 2.1 percent year-over-year, adding 69,400 jobs. Gains were fairly
broad based over the past year, but if there is one shortcoming in these
figures it is that nearly half the jobs added during the past year were in lowwage
industries such as food services and employment staffing. A few highwage
areas also perked up in professional and technical services,
manufacturing and logistics. Georgia’s unemployment rate remained
elevated at 8.7 percent, even though the state has seen a 0.6 percentage
point improvement over the past year.
Revisions to labor market data showed that 2,600 fewer jobs were added to
the state than initially reported. This somewhat disappointing result was
partially offset by the fact that initial data for January show Georgia
employment growth gaining momentum, up 2.1 percent, the highest yearover-
year growth since June 2006. The household data also show a robust
gain of 78,000 jobs, which easily outpaces growth in the labor force.
Revised Data Show Atlanta’s Economy Is Back on Track
Led by strong private sector growth, Atlanta now shows much stronger job
growth. Initial readings had pegged nonfarm employment growth at
1.6 percent year-over-year, but revisions show the payrolls actually grew
2.8 percent. The more positive trend in employment growth was not
entirely expected since the Quarterly Census of Employment and Wages
suggested that last year’s job growth had been understated. Household
numbers have also been posting stronger gains. Job growth was generally
broad based across industries, although employment decreased in the
public sector. Professional and business services saw the largest annual
gain, rising 4.5 percent. Nearly half of the jobs added in this sector were in
employment services, which tend to be more heavily weighted toward parttime
positions. Still, growth in employment services is usually a leading
indicator of stronger overall job growth. Leisure and hospitality also posted
strong gains, rising 5.4 percent, mainly due to an increase at restaurants.
Atlanta’s information sector continues to grow due to ongoing expansion in
internet-related businesses and wireless communications. Growth in
internet security has been a notable bright spot. Employment
transportation and distribution remains solid, with growth at consumer
products companies leading the way. Hiring has also picked up in
professional and business services and the financial sector. While the
largest portion of those gains has been at staffing companies, employment
has also picked up in higher paying areas. In addition, manufacturing and
construction are also gaining strength. Government remains the primary
source of weakness in Atlanta, as budgets remain tight at all levels.