Report finds thousands of Georgia residents ‘missing’ from the labor force

Report finds thousands of Georgia residents ‘missing’ from the labor force

In The News

Report finds thousands of Georgia residents ‘missing’ from the labor force

While Georgia officials routinely tout the state’s low unemployment rate, a new report found hundreds of thousands of residents are “missing” from the labor force.

According to a Georgia Center for Opportunity analysis, 454,100 Georgians are not in the labor force and have effectively given up on work. The number does not include retirees, students or full-time caregivers.

“The startling statistic shows a hidden story behind the unemployment rate that reveals deeper cracks in the labor market that will cause problems for years to come, both in the economy and in individuals’ lives,” Erik Randolph, GCO’s director of research, said in a news release. “The reason why this matters is not strictly an economic one — we know that these individuals’ giving up on work has profound social, psychological, and relational impacts that extend well beyond the pocketbook.”

Report finds thousands of Georgia residents ‘missing’ from the labor force

Georgia ranks 8th nationally in economic freedom

In The News

Georgia ranks 8th nationally in economic freedom

Georgia is the 8th most economically free state in the country, according to the report Economic Freedom of North America 2022 by the Fraser Institute.

The report tracks freedom across three variables — government spending, taxes, and regulation — and focuses on the 2019-2020 fiscal year.

Georgia improved its ranking from the 2018-2019 fiscal year, moving from 10th place that year to 8th place in the most recent report.

“This is another report that reinforces Georgia’s place in the country as a freedom leader, especially during the pandemic and now in post-pandemic life,” said Erik Randolph, director of research for the Georgia Center for Opportunity. “This shows why the GCO’s work is so important as we continue to advocate for meaningful work, access to a great education, and a healthy family life.”

The midterm election is over (sort of). What’s next?

The midterm election is over (sort of). What’s next?

Election Day

The midterm election is over (sort of). What’s next?

Key Points 

  • The full results of the midterms are still to be decided.
  • One thing hasn’t changed — the need to expand opportunity.
  • We also see opportunities to impact our neighbors for good in a few key policy areas – education, work, and family.

Election day has come and gone, and we still have many unanswered questions about the leadership of our country. The full results of the midterms are still to be decided. What’s clear is that Georgia will once again play a key role in the results, with a runoff in the U.S. Senate campaign scheduled for Dec. 6. Once more, our state will have to endure a barrage of political ads as the nation watches to see what the results will be.

While questions are sure to persist in the days and weeks to come as we resolve political leadership, one thing hasn’t changed — the need to expand opportunity. While who holds the reins of power in Washington and Atlanta does matter, ultimately it’s in local communities where the true change happens that leads to human flourishing.

As for us at the Georgia Center for Opportunity, we are ready to take on big challenges as we close out the year and move into the next. Our community-based work of connecting people to work, education, and family training resources is still at the heart of what we do. But we also see opportunities to impact our neighbors for good in a few key policy areas. We’re focused on:

  • Education: With a better understanding of who will be leading in our state, we see a great opportunity to expand educational freedom in Georgia in 2023. This battle has lasted a long time but the nearly 500,000 kids in failing Georgia schools need us to step in and demand change.

     

  • Work: We also see opportunities to radically change the policies that trap people in generational cycles of government dependency. Our goal is to help thousands more of our neighbors move into work and the joy of accomplishment and pride that comes with it.

     

  • Family: We hope to seize the opportunity to address the penalties that are discouraging marriage in low-income communities, creating a system that destabilizes families and the support they bring to us all. 

“While who holds the reins of power in Washington and Atlanta does matter, ultimately it’s in local communities where the true change happens that leads to human flourishing.”



“While who holds the reins of power in Washington and Atlanta does matter, ultimately it’s in local communities where the true change happens that leads to human flourishing.”



Policy does matter, but real change happens in our neighborhoods and communities where real life happens. It’s in communities where we first learn to love, trust, and experience sacrifice on behalf of something beyond ourselves. And it’s in communities where we find the answers to our most pressing problems. Regardless of who leads our state and federal government, that truth will never change.

 

Nearly half a million Georgians have given up on work

Nearly half a million Georgians have given up on work

People working

Nearly half a million Georgians have given up on work

Key Points

  • Around 454,100 Georgians are missing from the labor force.
  • The labor force participation rate is a better barometer of the labor market than the unemployment rate because it includes workers who have simply given up looking for work and are sitting on the sidelines of the labor market altogether.
  • We need to answer, how to reintegrate these prime-age, work-capable workers back into the labor force?

A new analysis from the Georgia Center for Opportunity shows that around 454,100 Georgians are missing from the labor force. This figure comes even as pundits celebrate a statewide and national unemployment rate that remains at historic lows. 

The startling statistic shows a hidden story behind the unemployment rate that reveals deeper cracks in the labor market that will cause problems for years to come, both in the economy and in individuals’ lives. The reason why this matters is not strictly an economic one — we know that these individuals’ giving up on work has profound social, psychological, and relational impacts that extend well beyond the pocketbook.

When individuals are separated from work, they lose more than just monetary compensation or the food, shelter, clothing, and other basics that money can buy. They also face a loss of social connection, meaningful activity, self-respect, and overall purpose.

 

The numbers

Here’s a quick deep dive into the numbers. The U.S. Bureau of Labor Statistics announced Nov. 4 that the unemployment rate rose to 3.7%, which is a tick higher than the previous low of 3.5% but still at historic lows. Georgia’s unemployment rate stands at 2.7%, 14th best in the nation.

The troubling trend is in the labor force participation rate, however. This rate is a better barometer of the labor market than the unemployment rate because it includes workers who have simply given up looking for work and are sitting on the sidelines of the labor market altogether. The U.S. labor force participation rate was at 62.2% in October, down from a pre-pandemic rate of 63.4% in February 2020.

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Those detached from work

It’s important to note that the 454,100 figure developed by the GCO team does not include those unable to work, those who were retired, those in school or college full-time, and full-time caregivers for minor children in the home. In other words, that nearly half-million figure is people who are able to work but have simply decided to detach from the labor force altogether, for some other reason.

As for reasons why workers have quit, they are widespread and complex. The better question is how to reintegrate these prime-age, work-capable workers back into the labor force. That is a primary goal of the Georgia Center for Opportunity’s BETTER WORK initiative, currently operating in Gwinnett County and the Columbus areas of Georgia but soon to expand into many additional regions across the state. 

We see success stories like that of Eddie, who spent nearly five years on the street, homeless and working odd jobs, before getting connected with BETTER WORK Columbus and partner organizations to find stable housing, food security, and a long-term job. The goal of such programs is to get people into stable, self-supporting work so they can escape poverty and dependency cycles.

The GCO team also works to educate policymakers on the perils of benefits cliffs that keep people trapped in cycles of dependency and prevent them from moving up the economic ladder. People like Frankie, a single mom who turned down a $70,000-a-year job because it would mean losing essential government benefits that she relied on to support her family. The goal here is for policymakers to make wise decisions about the safety net so that we don’t continue to pour funds into a failing system.

Report finds thousands of Georgia residents ‘missing’ from the labor force

GCO analysis: Nearly half a million Georgians have given up on work

In The News

GCO analysis: Nearly half a million Georgians have given up on work

PEACHTREE CORNERS—A new analysis from the Georgia Center for Opportunity shows that around 454,100 Georgians are missing from the labor force. This figure comes even as pundits celebrate a statewide and national unemployment rate that remains at historic lows.

 

The 454,100 figure developed by the GCO team does not include those unable to work, those who were retired, those in school or college full-time, and full-time caregivers for minor children in the home. In other words, that nearly half-million figure is people who are able to work but have simply decided to detach from the labor force altogether, for some other reason.

 

“The startling statistic shows a hidden story behind the unemployment rate that reveals deeper cracks in the labor market that will cause problems for years to come, both in the economy and in individuals’ lives,” said GCO director of research Erik Randolph. “The reason why this matters is not strictly an economic one — we know that these individuals’ giving up on work has profound social, psychological, and relational impacts that extend well beyond the pocketbook.”

The U.S. Bureau of Labor Statistics announced Nov. 4 that the unemployment rate rose to 3.7%, which is a tick higher than the previous low of 3.5% but still at historic lows. Georgia’s unemployment rate stands at 2.7%, 14th best in the nation.

 

The troubling trend is in the labor force participation rate, however. This rate is a better barometer of the labor market than the unemployment rate because it includes workers who have simply given up looking for work and are sitting on the sidelines of the labor market altogether. The U.S. labor force participation rate was at 62.2% in October, down from a pre-pandemic rate of 63.4% in February 2020.

 

GCO research has found that when individuals are separated from work, they lose more than just monetary compensation or the food, shelter, clothing, and other basics that money can buy. They also face a loss of social connection, meaningful activity, self-respect, and overall purpose.

 

Randolph developed the figure using microdata accessed through the IPUMS-USA at the University of Minnesota. The tabulations come directly from the survey the federal government uses to calculate unemployment numbers. It counts those who are not in the labor force and are not retired, are not unable to work due to disability or sickness, are not in school or college full time, and who don’t have a child under 18 years of age while living with a married or unmarried partner.

 

Randolph also found that 208,600 Georgians fall under the official definition of “unemployed” and an additional 147,900 Georgians are currently working part-time but in search of full-time work.