Georgia’s unemployment rate is now below pre-pandemic levels, but so is its workforce, according to the latest statistics released by the Georgia Department of Labor.
The state’s unemployment rate dropped two-tenths of a percentage point to 3.5% in August, now lower than the rate of 3.6% the state recorded in March 2020 prior to the pandemic. The unemployment rate fell as the number of unemployed, almost 182,000, dropped below the pre-pandemic level of 187,000.
Georgia has regained 502,600 (83%) of the 609,500 jobs lost in March and April of last year.
Labor force still down
“Based on what we are seeing, it may take months, if not years, for the job market to return to some type of normalcy.” – GA Dept. of Labor Commissioner Mark Butler
Even though the state is currently seeing record unemployment rates and continued increases in employment, the concern remains on how to attract more individuals to the workforce to fill vacant jobs. The labor force remains down 31,000 from the number of Georgians in the workforce in March 2020 and the number of employed remains down 26,000 from pre-pandemic levels.
The number of jobs recorded in August was down 5,000 over the month. Job losses in Accommodation and Food Services and Retail Trade negated what otherwise would have been a job gain of over 4,000. Despite the loss, since May of 2021, Georgia’s job numbers are up over 71,000 for the year but still down 107,000 from the pre-pandemic total.
While Governor Brian Kemp heralds the August jobs report as evidence of an economy that “continues to beat expectations,” state labor commissioner Mark Butler remains cautious.
“Job growth will become stagnant if we don’t fill the hundreds of thousands of jobs that we currently have open right now,” says Butler. “We are not seeing the number of Georgians rejoin the labor force at the same pace as we are seeing employers post jobs and we are taking an in-depth look at why.”
Return to normalcy could take years
The GDOL recently hosted a series of virtual recruitment strategy sessions for employers across the state to discuss recruiting practices to help employers hire and retain quality employees. These sessions looked at untapped workforce populations, hiring incentive programs, employee attraction and retention ideas, pandemic workplace considerations, and how the GDOL is addressing critical labor needs.
MORE: Georgia LaborMarket Explorer
The GDOL collected information from over 750 jobseekers and employers prior to the sessions on various questions concerning employee attraction and retention.
When researching the reasons for the workforce shortage, employers blamed unemployment insurance benefits, employees not wanting to work, and an unqualified workforce. Many employers stated they were not able to hire applicants due to poor resumes, criminal backgrounds, and failed drug screens.
Jobseekers said they were discouraged from applying due to a lack of qualifications, fear of COVID exposure, and a desire for higher salaries and benefits. However according to survey results, 69% of employers say they have been increasing pay scales, 46% report increased flexibility with education and experience requirements, and over a third say they have enhanced benefits and are now hiring more seasoned workers over the age of 50.
“We are hearing from employers who are raising salaries and enhancing benefits packages and are still not able to fill these jobs,” says Butler. “Based on what we are seeing, it may take months, if not years, for the job market to return to some type of normalcy.”
Job gains, losses, and openings
The sectors with the most over-the-month job gains in Georgia include Administrative and Support Services, Professional, Scientific, and Technical Services, Non-Durable Goods Manufacturing, Finance and Insurance, Wholesale Trade, Arts, Entertainment, and Recreation, Health Care and Social Assistance.
The sectors with the most over-the-month job losses include Accommodation and Food Services, Retail Trade, Specialty Trade Contractors, Local Government, and Repair and Maintenance.
Currently, there are over 200,000 jobs posted on Employ Georgia. Combined, 70,000 of those jobs are in the Health Care, Retail Trade, and Accommodation and Food Services sectors. DOL says, in many cases, employers are willing to train quality candidates and assist with obtaining additional credentials.
