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

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. 

Georgia’s unemployment rate now stands at a record low of 3.0%

Georgia’s unemployment rate now stands at a record low of 3.0%

Georgia’s unemployment rate now stands at a record low of 3.0%

Key Points

  • Georgia is one of 14 states to fully recover from pandemic-related job loss.
  • States with severest lockdown are still struggling. 
  • There’s been a decline in labor force participation. 

Georgia’s unemployment rate now stands at a record low of 3.0% in May, according to new data from the U.S. Bureau of Labor Statistics released on Friday.

The Georgia Center for Opportunity’s (GCO) take: “Georgia is now one of only 14 states in the U.S. that have fully recovered from pandemic-related job loss,” said Erik Randolph, GCO’s director of research. “The states that imposed the severest lockdown measures due to COVID-19 are still struggling, and likely will be for months to come. All told, Georgia is in excellent company as one of the top states in job recovery. That being said, it’s important to remember that unemployment rates can be misleading. Since the pandemic, we’ve witnessed an acceleration of the decline in the labor force participation rate. Particularly concerning is the persistent problem of prime-working-age males being absent from the labor force. The number is estimated to be around 250,000 men in Georgia in 2021. A major policy goal in our state must be efforts to reengage this men in the labor force.”

GA unemployment 3%
New Research: School Students Lag Behind in Literacy Almost Two Years Into the COVID-19 Pandemic

New Research: School Students Lag Behind in Literacy Almost Two Years Into the COVID-19 Pandemic

New Research: School Students Lag Behind in Literacy Almost Two Years Into the COVID-19 Pandemic

sad kid near bookbag

 New research brief shows that elementary school students lag behind in literacy almost two years into the COVID-19 pandemic

The mid-school-year assessment concluded that students in kindergarten, first grade, and second grade are the furthest behind compared to their pre-pandemic counterparts. Black and Hispanic students are bearing the brunt of those learning losses, with the literacy gap between minority students and white students larger than before the pandemic.

The Georgia Center for Opportunity’s (GCO) take: “Count this report as yet another entry in a long line of research studies showing the devastation of learning loss due to school shutdowns,” said Buzz Brockway, GCO’s vice president of public policy. “Georgia kids need the flexibility provided by Promise Scholarships now more than ever. We urge lawmakers to pass either House Bill 999 or House Bill 60 immediately. Both bills would provide up to $6,000 a year for families to choose alternatives to their locally zoned public school.”

 

buzz quote

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

Inflation hits 30-year high as holiday season nears | Center Square

In The News

Inflation hits 30-year high as holiday season nears | Center Square

The prices of everyday goods are getting increasingly more expensive, new federal data confirm.

The Department of Labor’s Bureau of Labor Statistics on Wednesday released its monthly report on the consumer price index, a key marker of inflation, which showed that consumer prices rose 0.9% in October and are currently rising at the fastest rate in decades…

Erik Randolph, director of research for the Georgia Center for Opportunity, disagrees, pointing to increased spending under the Biden administration as a cause for concern.

“Hoping that inflation is just transitory may be wishful thinking at this point,” Randolph said. “This October report is a warning bell for Congress and the Federal Reserve to focus on fiscal spending and monetary causes. As Congress proposes spending more on programs using debt, they are at risk of causing more financial woes and not the relief they seek.”

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

City Of Lawrenceville, Gwinnett County And Impact46 Partner To Fund Lawrenceville Response Center | PATCH LAWRENCEVILLE

City Of Lawrenceville, Gwinnett County And Impact46 Partner To Fund Lawrenceville Response Center | PATCH LAWRENCEVILLE

The City of Lawrenceville and Gwinnett County partner with Impact46 to provide $525,000 in funding for the Lawrenceville Response Center (LRC). The Lawrenceville City Council unanimously finalized support at a special called meeting on Wednesday, February 10. Gwinnett County will secure their support for the project through the C.A.R.E.S. Act…