Georgia lost jobs in September, says 1st report since federal shutdown

“It’s obviously a bit of a disappointment to see some job loss in the month of September in Georgia,” Tutterow said. “It was not unexpected. … Nationwide, we have been seeing a real slowing in terms of payroll growth coming out of the pandemic.”

The state unemployment rate was 3.4% in September, unchanged from July and August and down from a high of 3.6% earlier in the year. Georgia’s jobless rate is a whole percentage point below the national rate.

The Thursday report provides the first glimpse in months into the state labor market. The Georgia Department of Labor stopped publishing its regular updates during the federal government shutdown, which spanned the entire month of October and into the first weeks of November.

October and November data are expected to be released Jan. 7, a Labor Department spokesperson said.

Tutterow said he expects the shutdown had only a short-lived impact on the labor market. “Typically, you make up for almost all the shutdown losses when the government reopens,” he said. “At least, that’s historically been the pattern we’ve seen in past episodes.”

In September, Georgia saw jobs decline in administrative and support services, which lost 4,200 jobs, and state and federal government, which combined dipped by 2,300 jobs. The retail trade and information sectors also posted job losses.

The state gained jobs in professional and technical services, which added 1,400 jobs, and finance and insurance, which increased by 1,300 jobs, and other sectors. Local government employment also rose, by 1,000 jobs.

Nationally, employers added 119,000 jobs in September, but the unemployment rate ticked up to 4.4%, according to the U.S. Bureau of Labor Statistics, which released the data in late November. But, from May to August, the U.S. labor market exhibited softness and volatility, Tutterow said.

“It’s fair to say pretty much from May forward, there’s been some evidence of more slowing in economic activity,” he said.

Amy Mangan, market director in Atlanta for Robert Half, a global staffing company, said skilled professionals are aware of the economic conditions and more reticent to take new jobs.

“They don’t want to be the last one in, first one out in such uncertain economic times,” Mangan said.

She said she also believes people have “cold feet” about switching jobs, because many companies have shifted their policies and require workers to return to the office.

“We’ve had offers turned down in many different cities, Atlanta included, where it was more money, it was a higher bonus, and it was a better job,” she said.

“Everything is better, but the parameters of the hybrid schedule were significantly decreased from their current situation, and people could ultimately not justify making that move for their family,” she said.

Mangan said more workers may have the courage to change jobs next year, especially those employed in technology and health care, along with certain demographics, including working parents and Generation Z.

The University of Georgia’s Terry College of Business predicts the state unemployment rate could tick up to an average of 4.1% in 2026 amid slower growth, according to a new economic outlook from the Selig Center for Economic Growth.

“Job growth will be more narrowly based than usual,” the report states. “Health services, private education, data centers, (artificial technology), software development, (information technology) services, cybersecurity, finance, insurance, manufacturing, and local governments will add jobs.

“Employment will hold steady in transportation, logistics, and utilities. Jobs will be lost in construction, retailing, information, restaurants, hotels, real estate, and the federal and state government,” the Selig Center report said.