Economy squeezes Georgians

The skies have darkened in Georgia job markets, and most forecasters say the storm will likely grow harsher in coming months as the economy continues to struggle.

In the latest sign that times are getting tougher, new jobless claims in the state climbed in October to 72,627 —- 75 percent higher than a year earlier, the Georgia Department of Labor reported Thursday.

Nationally, the number of newly laid-off individuals seeking unemployment benefits has jumped to a level not seen since just after the Sept. 11, 2001, terrorist attacks, according to federal figures also issued Thursday.

The human toll was visible at the department’s South Metro Career Center on Martin Luther King Jr. Drive, which was just about filled with job-seekers in the afternoon.

People wanting career counseling sat at tables. Others needing a computer to fill out online unemployment insurance applications watched a TV and waited for their names to be called. It was a swirl of activity, of hopeful looks and resigned stares, of people coming to the realization that the economy is, indeed, in trouble.

And they were, too.

Jamila Mitchell of Atlanta has been looking for work since her seasonal job at Turner Field ended in September. She’s surprised at how hard times have become.

“It’s bad,” said Mitchell, 23, who has filed for unemployment. “I can’t tell you how many applications I have filled out.”

She has a bachelor’s degree in business management, but the diploma isn’t doing her much good.

“I’ve applied at banks, a warehouse, even a funeral home,” she said. “I need a job.”

Other stories showed the alarming Labor Department statistics may be an undercount.

Kentrell Williams was a machine operator in Lithia Springs until about two weeks ago, when work dried up. The 25-year-old Atlanta resident, who has two children, said he doesn’t want to file for unemployment if he can help it.

On Thursday afternoon, Williams said he was heading to the U.S. Air Force recruiting station.

Maybe Uncle Sam had some openings.

A gloomy forecast

Filings for jobless benefits, while often a volatile measure, are the nearest thing to a real-time watch on the job market. That’s because they provide a running count of Georgians who ask the state for help after being laid off.

The new U.S. jobless claims from last week, reported Thursday, jumped to 516,000 —- up 32,000 from the week before.

According to the state Labor Department’s monthly report, 539,383 initial claims for unemployment insurance have been filed thus far this year —- an increase of nearly 43 percent from the same period of 2007.

More ominously, the layoffs in the last several months seem to have been accelerating.

The state’s unemployment rate in September was 6.5 percent, compared with a national rate of 6.1 percent. The state’s October rate has not yet been reported.

Economists say the job market typically lags the economy: Companies often don’t start cutting until the economy is sagging, and they don’t start hiring until the recovery has already begun.

Unfortunately, a recovery seems to be far off. Most economists think the layoffs and the unemployment rate will peak in mid- or late-2009.

Raining on the optimists’ parade now are a series of crises —- any of them cause for worry. The financial markets are so troubled that the government is pouring hundreds of billions of dollars into the banks and investment houses. Real estate is fueling the storm: Inflated values and a wave of problem loans are still dragging down home prices, eliminating thousands of jobs and threatening foreclosure against millions of Americans.

But in a $14.4 trillion-a-year economy, much of the landscape still has sunny spots. Health services, for example, have boomed right through everything.

Keeping ‘your head up’

Still, the search process is arduous.

Kimberly Reeves has been unemployed since July, when the child care firm where she worked told her it no longer needed her. She filed for unemployment and began asking for work.

Reeves is looking for cashier’s jobs, retail sales work, you name it. She is getting by with her unemployment payments, food stamps and help from a church, said Reeves, who has three children.

She remains upbeat, even in a down economy.

“The grace of God is keeping me,” she said. “You’ve got to keep your head up.”

Q&A

Q: What is unemployment insurance?

A: It’s temporary pay for people who’ve lost jobs through no fault of their own.

Q: Who qualifies?

A: You must have earned enough money in a given time period to set up a claim. You must be unemployed through no fault of your own. Filers must be able to work, available for work, and be actively seeking work each week they claim benefits.

Q: Where can I apply?

A: At any Georgia Department of Labor Career Center. Find them at: www.dol.state.ga.us/find_career_centers.htm

Q: What do I need to bring when I file a claim?

A: You’ll need a Social Security number. Also bring any separation notices from your last employer. Bring names and addresses of employers for the last 18 months, and dates worked. People who are not U.S. citizens need proof of immigration status.

Q: What is the weekly unemployment payout?

A: The amount received is based on what a worker earned previously. The minimum is $44 a week; the maximum is $330 a week.

Q: How long are benefits paid?

A: For up to 26 weeks.

Source: Georgia Department of Labor

 CHARLES W. JONES / Staff 
JOBLESS CLAIMS 
First-time filings for unemployment insurance: 
Graph compares Georgia and Atlanta for these months: 
Sept. 2007, Oct. 2007, Sept. 2008 and Oct. 2008. 

...........Oct. 2008
Georgia.......72,627 
Atlanta.......29,057 
Source: Georgia Department of Labor 

 GEORGIA JOBS 
Change in Georgia jobs from Sept. 2007 to Sept. 2008: 
Total (big categories listed)......DOWN 53,200, or 1.3 percent 
Construction ......................DOWN 15,600 jobs, or 7 percent 
Manufacturing......................DOWN 21,400, or 5 percent 
Food and beverage stores ..........DOWN 200 jobs, or 0.2 percent 
General merchandise stores ........UP 1,100 jobs, or 1.1 percent 
Real estate, rental and leasing....DOWN 600 jobs, or 0.9 percent 
Financial activities ..............DOWN 5,200, or 2.3 percent 
Educational and health services....UP 10,300 jobs, or 2.2 percent 
Leisure and hospitality............DOWN 1,300, or 0.3 percent 
State government ..................DOWN 400 jobs, or 0.2 percent 
Local government ..................DOWN 7,100 jobs, or 1.7 percent 
Source: Georgia Department of Labor