As 2016 began, Metro Atlanta’s unemployment rate rose, climbing from 4.8 percent in December to 5.2 percent in January, the state labor department said Thursday.
This takes the Atlanta rate back above the national rate, where it has been nearly every month since the recession started in late 2007. The U.S. unemployment rate is 4.9 percent.
The region also lost 36,200 jobs during the month. But that’s not as bad as it sounds.
Really.
Overall, despite several months of volatility in the stock market, the picture is encouraging, said Ed Hyland, Atlanta-based global investment specialist with J.P. Morgan Private Bank.
“Atlanta seems to be – both from looking at the numbers and anecdotally – doing pretty well,” he said. “I look out my window and see cranes. And you walk into restaurants and they’re crowded. I think that’s a positive indication.”
Here’s what is going on:
1. The economy always loses jobs in January. Always. That’s because many seasonal workers are let go as holiday shopping and celebrating come to an end. At the same time, most companies have not yet put their new year’s hiring plans into gear.
(At least, we hope they have hiring plans.)
During the previous five Januarys, metro Atlanta lost an average of 41,000 jobs.
2. The unemployment rate always goes up in January – all the way back to 1990, when the government started keeping track of metro Atlanta data.
There are about 147,000 people in the region who are unemployed and searching for work.
3. Even though January was worse than December, it was better than a year ago when the unemployment rate was 6.2 percent.
4. Employers laid off 7 percent fewer people in January than during the same month of 2015 (based on new claims for unemployment insurance).
5. But hey, you shouldn’t get hung up on one month anyhow. And during the past year, metro Atlanta has added 88,400 jobs. That growth represents 74 percent of the jobs added in Georgia during that period, which means the region’s hiring pace is faster than the rest of the state.
6. Job losses came from a range of sectors during the month: Among the losers were retail, transportation and warehousing, and manufacturing. Even education and healthcare slimmed down during the month.
Hardly any sectors of the economy added jobs. The biggest gainer was accounting and tax preparation – after all, April 15 is just around the corner.
In November 2007, the month before recession began, the unemployment rate for metro Atlanta was 4.4 percent.
Among the core counties of metro Atlanta, the unemployment rate ranged, with the best rates at the north of the region:
• Cobb, 4.6 percent
• Gwinnett, 4.7 percent
• Fulton, 5.4 percent
• DeKalb, 5.5 percent
• Clayton, 6.9 percent
About the Author
