Job growth rises but wages, hours drag

The state’s economy has added 75,700 jobs in the past 12 months.

Despite recent growth, the state’s labor force is nearly 89,000 smaller than at the start of recession in late 2007 and 331,600 Georgians are unemployed – nearly half of them for six months or longer.

Many people with jobs face stagnant wages and limited hours.

Edward Fraraccio, for example, recently moved with his family to metro Atlanta, but his wife’s job fell through and the big-box retailer where he works doesn’t need him much more than 30 hours a week.

After taxes and deductions, he makes about $350 a week – not enough for a deposit on a decent apartment.

The family is staying in a motel and trying to save money.

“I’ve been looking for a second job,” he said. “I would do just about anything. I just need to make another $200 a week.”

The boom of a decade ago pushed median household income in Georgia up 12.8 percent – but it fell farther after the recession hit.

Yet there are hopeful signals after several years of lackluster growth.

One clue to trends comes from staffing firms. In the early stages of expansion, businesses often use temps.

In recent months, staffing firms reported higher demand for financial experts and software engineers. And now, blue-collar jobs too are on the rise, said Ryan Schadel, CEO of LaborSmart.

The Georgia-based company expects to more than double the number of workers he places with companies, he said. “Demand is probably double what it was 18 months ago. There have been a few head fakes along the way, but things have picked up.”

Construction jobs are appearing, he said. “We also see hospitality making a huge comeback later this year.”

While government data on wages lags by more than a year, anecdotal evidence suggests they are rising strongly only in specialized skills like healthcare and technology.

Labor unions and other advocates helped organize a walkout at some fast food restaurants this week, protesting limited hours and arguing for higher pay – starting with the minimum wage.

Connie Ogletree, 55, of Atlanta, said she makes that minimum – $7.25 an hour – at a restaurant and that the most experienced workers there make about $8.50 an hour. Most weeks she is not given more than 10 hours, she said.

“I have been asking for more hours since December,” she said. “I would take at least 20 to 30 hours. I would take ‘em.”

Antwon Brown, 31, of Atlanta makes $7.50 an hour at a fast food restaurant that usually allows him about 24 hours a week, he said. “My rent is $500 a month, my lights are $150. I’ve got gas, water and MARTA costs $100 (a month).”

“A higher wage would give me a chance to chase the American Dream,” Brown said. “Right now, I’m walking – I’m not chasing anything.”

In strong labor markets – during the late 1990s, for example – the unemployment rate fell dramatically, competition for workers increased and pay for many jobs was rising. Many fast-food restaurants were hungry enough for workers that they offered well above the minimum wage.

Median household income soared for several years as the state enjoyed growth across sectors.

Now, however, median incomes are only modestly higher than they were in 1996.

Government data also shows hours worked in Georgia fell during the recession and have rebounded only modestly.

That handicaps new entrants to the job market, too, said Kevin Paul Scott of Kennesaw, founder of Addo Worldwide, which runs training and leadership programs for young people.

“There is an increasing trend of college graduates getting employment that is not in the field they studied or is in part-time internships that in the past would have been reserved for students.”