FILE - In this Thursday, Oct. 25, 2012, file photo, a sign attracts job-seekers during a job fair at the Marriott Hotel in Colonie, N.Y. The Labor Department reports on state unemployment rates for May 2015 on Friday, June 19, 2015. (AP Photo/Mike Groll, File) Unemployment fell in Tennessee last month to the lowest level in more than eight years as employers across the Volunteer State added 53,800 jobs over the past year.
In Georgia, the jobless rate edged higher in May even though Georgia employers continued to add jobs at a faster pace than the rest of the nation, boosting employment in the Peach State by 114,900 jobs.
According to state reports released Thursday, unemployment remained above the U.S. average in both Tennessee and Georgia. But not by much and by a narrower amount than during the recent recession.
Jobless in May
* 5.5 percent for U.S. as a whole, up by 0.1 percent from April* 5.8 percent in Tennessee, down 0.2 percent from April* 6.3 pecent in Georgia, up 0.1 percent from AprilSources: Tennessee Department of Labor and Workforce Development and Georgia Department of Labor
Tennessee's jobless rate fell by two-tenths of a percent to 5.8 percent and Georgia's jobless rate ticked up a tenth of a percent to 6.3 percent.
Nationwide, unemployment in May rose a tenth of a percent to 5.5 percent.
"All around, this was very good news for Tennessee as we continued to add jobs at a very healthy pace and our unemployment rate nearly matched the national average," said Bill Fox, director of the Center for Business and Economic Research at the University of Tennessee. "We expect Tennessee will do at least as well as the nation and with the addition of projects like Volkswagen in Chattanooga, we expect growth to continue and unemployment likely will continue to come down."
According to the employer survey, Tennessee employment grew by 1.9 percent in the past year, led by strong gains in trade and the leisure and hospitality industries.
In Georgia, the jobless rate grew slightly but only because the number of persons entering the labor market looking for jobs exceeded the growth in employment. Overall job growth in Georgia exceeded the U.S. average during May.
"Our labor force expanded for the 18th month in a row, and that's probably the biggest factor in driving up the rate," Georgia Labor Commissioner Mark Butler said. "Also, initial unemployment claims were up, but by less than 1 percent."
With its dependence upon the housing and building material market, Georgia suffered more than most states from the housing slump during the Great Recession. Georgia led the nation in the number of failed banks during and right after the recession and it was among the top states for property foreclosures.
But the recovery in housing has spurred the forest and building products industries in Georgia, including the carpet and floorcovering industry based in Dalton.
"Georgia is outperforming both the nation as a whole and what we predicted for the state this year," said Jeff Humphreys, director of the Simon Selig Center for Economic Growth at the University of Georgia. "While the U.S. economy has underperformed what most people expected so far this year, Georgia has outperformed expectations."
As an importer of nearly all of its energy supplies, the Peach State has benefited by cheaper gas. As the housing industry has rebounded, Georgia building supply firms are not only doing better, the state is recruiting more Baby Boomer retiring Snow birds from northern states. Humprheys said.
"I don't foresee any real economic slowdown through 2016 and 2017, and beyond that I don't make predictions," he said.
Employment totals in both Tennessee and Georgia rose to new record highs in May.
"Right now, we're showing a stronger pace of growth than we did last year, and 2014 was a very good year," Butler said.
Local unemployment figures will be released next Thursday. But the Georgia Department of Labor said employment in metropolitan Dalton has grown by 2,100 jobs, or 3.2 percent, from May 2014 to May 2015.
Despite the improving job market across the region, the Tennessee Department of Labor and Workforce Development reported that average hourly pay for manufacturing workers in Tennessee still slipped in May from an average $17.42 an hour in April to $17.29 in May. Over the past year, the Bureau of Labor Statistics said the typical U.S. worker got a 2.3 percent pay raise.
Contact Dave Flessner at dflessner@timesfreepress.com or at 757-6340.