Five things to know about Atlanta's falling unemployment rate

September 22, 2016 at 9:50 p.m. | Updated September 22, 2016 at 9:50 p.m.

by Associated Press

AP file photo - Job applications sit on a table during a job fair. The unemployment rate has declined nationally to 4.9 percent — half what it was seven years ago. (AP Photo/Wilfredo Lee, File)
AP file photo - Job applications sit on a table during a job fair. The unemployment rate has declined nationally to 4.9 percent — half what it was seven years ago. (AP Photo/Wilfredo Lee, File)

The August economy

Metro Atlanta, jobs by sector Construction 200 Manufacturing -2,000 Trade, Transportation, and Utilities 1,200 Information -200 Financial Activities -500 Professional and Business Services 1,600 Education, Health Services 3,900 Leisure and Hospitality 1,600 Other Services -1,100 Government 9,800 Total jobs added: 14,500 Sources: Georgia Labor Department, Bureau of Labor Statistics

The metro Atlanta unemployment rate edged down to 5.0 percent in August, dropping from 5.1 percent in July, the state labor department reported today.

Solid hiring combined with drop in the number of people in the workforce as the jobless rate for Atlanta hit its lowest point since December 2007, the month marking the start of the Great Recession.

"This is probably the tightest labor market we have seen," said Larry Feinstein, chief executive of Hire Dynamics, an Atlanta-based staffing agency.

And while this August was slightly weaker than the past several years, the metro Atlanta economy added 14,500 jobs. Even better for the math – although maybe not for the people involved – about 25,000 people left the workforce.

Last week, the Labor Department announced a similar dip in the state's jobless rate – from 5.0 to 4.9 percent.

The state's rate is massaged somewhat to account for seasonal patterns. The metro Atlanta rate is not adjusted that way.

Of course, one month's data can be unreliable, so the more important question is about the longer arc of the economy. And the trajectory is positive, if not spectacular.

A year ago, the metro Atlanta unemployment rate was 5.6 percent. Since then, metro Atlanta has added 71,000 jobs – more than half the jobs added in Georgia during that time.

That is most of the jobs added in the state durinig that period. It is also pretty much how the region did the previous 12 months.

The jobless rate nationally is 4.9 percent.

Here's what is going on:

1. In anything but a recession, the Atlanta unemployment rate typically declines in August. Companies start to move back from summer-thinking to hiring mode, while some people move from jobs – or job-seeking – to school.

2. Hiring in August was solid, if slightly weaker than an average August. In three previous years, metro Atlanta averaged job gains of 18,900 during the month.

3. Among the sectors that grew during the month: government – led by the schools – was the strongest, adding 9,800 jobs.

But there was some back-up: health services grew by 3,900, professional and business services expanded by 1,600, the same number were added in leisure and hospitality, and the logistics sector added 1,200 positions.

4. Three sectors lost jobs during the month. Manufacturing fell by 2,000 positions, financial services lost 500 jobs and information services dipped by 200.

5. Layoffs were down.

The number of initial claims for unemployment insurance dipped 11.3 percent, to 13,728 in August. The number of claims were up slightly from a year ago, rising 2.7 percent.

SUMMING UP: Atlanta's growth was faster in 2015 than it has been thus far in 2016. And with so many economic headwinds – mostly international – that can dampen growth even more, the question last month was whether a slow July represented a pause or an inflection point.

The answer in today's numbers is upbeat: The Atlanta economy is growing.

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