The Atlanta Journal-Constitution
Ga. jobless rate rises in September
Increase linked to growing number of people who are leaping into labor force, looking for jobs.
Georgia’s unemployment rate rose to 5.1 percent in September from 4.9 percent in August, even though it was the state’s best September for job growth since 1997, the state labor department said.
That rate typically holds steady or declines in September.
But the report said the rate didn’t climb because of layoffs. Rather, it rose because so many people were leaping into the labor force in search of work.
“In September, we had the largest increase in our labor force we’ve seen in nearly a quarter of a century,” said Mark Butler, the state labor commissioner.
The unemployment rate has fallen pretty steadily for several years. But it includes only people who are looking for work, and there has been a growing share of people dropping out of the workforce – retiring, returning to school or tending to home chores.
Some had simply given up looking for work, but no one was sure how many. Economists said a hot job market would draw some back in, but in the meantime they weren’t counted as unemployed, since they weren’t looking for a job.
Then came September: The Georgia economy added 18,100 jobs in the month, the labor department said. That is the strongest September since 1997. But the workforce bulged by 25,737 people, more than offsetting the new jobs in the unemployment rate calculation.
“It’s really good news because almost three-quarters of them landed a job right away,” Butler said.
The labor force since January has surged by 134,082, Butler said. In that time, the number of Georgians with at least one job has grown by 127,693.
A year ago, the jobless rate was 5.6 percent, down from its post-recession crest of 10.5 percent. Since September of 2010, the state’s economy has added about 540,000 jobs – most of them in the past three years. Despite the September increase
in the jobless rate, the trajectory is one of an improving labor market – good for workers who want higher wages or more choice when it comes to picking where they work. Hannah Hardy of Winder is one of those taking advantage of that shift.
Hardy, 20, had been working at a restaurant, but it didn’t suit her. So she linked up with Hire Dynamics, an Atlanta-based staffing agency, and was quickly placed in a job on the second shift at a large distribution center about a 15-minute drive from her apartment.
“Food work really isn’t for me,” she said. “I prefer warehouse work. For me, it’s easy and fast-paced. It’s definitely good work.”
Larry Feinstein, chief executive of Hire Dynamics, said he has seen demand for labor steadily rise for several years. The company, which sends up to 6,000 people to jobs each week, is especially attuned to the need for workers as the holidays approach.
Changes in consumer habits have fueled the need for help in metro Atlanta’s distribution centers, Feinstein said.
“It used to be that the need was in getting merchandise to the stores and now the stores aren’t growing, but they are doing more e-commerce.”
Wages even for the lower-skilled jobs have edged up to $12 an hour, he said. It’s higher for those with particular abilities like forklift drivers, he said: “Those guys are making $14 to $16 an hour.”