Georgia is among the states most impacted by inflation, that is according to Merchant Maverick, which ranked the Peach State fourth-highest in impact from inflation. Over the last two years, U.S. workers have contended with one of the most unusual economic environments in memory. On one hand, persistent tightness in the labor market has provided a greater opportunity and wage growth for many workers.
The unemployment rate today sits at just 3.7%, but the economy nonetheless continues to add hundreds of thousands of jobs each month. In efforts to recruit and retain workers in this environment, many employers have been boosting wages, especially for lower-earning workers. With these factors contributing to a tight labor market, workers have more choices of job opportunities, and more employers have been raising wages to hire and retain employees. As a result, nominal wages are growing faster than at any point in at least two decades.
But rising inflation over the course of 2021 and 2022 has taken a bite out of rising wages. Year-over-year inflation, as measured by the Consumer Price Index, has hovered around or above 8% for much of 2022. Prices for essential expenses like food, shelter, and energy have skyrocketed due to supply challenges. With prices rising so quickly, workers are discovering that their increased pay does not go as far as they had hoped.
But the highest levels of inflation in decades have eaten into workers’ gains. Year-over-year increases in the Consumer Price Index have topped 5% for every month since May 2021, peaking at 9.1% in June 2022. And many of the categories where costs have risen the fastest are necessities that take up a large portion of household budgets, like shelter and groceries.
Georgia just recorded a historically low unemployment rate of 3.1%. The rate has been falling for months now, with big gains coming in the rebounding hospitality industry and transportation. Georgia Labor Commissioner Mark Butler said initial unemployment claims have also fallen by 14% from February to March of this year, and they have fallen 87% from a year ago.
In Georgia, the most important categories in the consumer price index are food and non-alcoholic beverages (33.1 percent of the total weight) and transport (11.8 percent). The index also includes healthcare (9.5 percent); housing, water, electricity, gas, and other types of heating (9 percent); alcoholic beverages, tobacco (6.7 percent); other goods and services (5.3 percent); furniture, household items and decoration, home care and repair (5.2 percent); education (4.9 percent); clothing and footwear (3.9 percent); hotels, cafes and restaurants (3.9 percent); communication (3.8 percent); and recreation and culture (3 percent).
Job openings and quit numbers turned positive in June for Georgia as layoffs and discharges declined. The number of job openings posted in Georgia rebounded in June, rising by 51,000, according to new information from the U.S. Bureau of Labor Statistics. The number of job openings for May was revised up to 376,000 from a preliminary count of 367,000.
Job openings totaled 427,000 compared to 368,000 recorded a year ago, an increase of 9.3%. The job openings rate rose to 8.2 in June, up from a revised 7.3 in May. The number of hires was statistically unchanged over the month and over the past year.
Quits rose by 27,000 in June to a total of 211,000, the same number of quits posted in June of 2021. The quit rate in June came in at 4.4, up from 3.8 in May but below the 4.6 rates recorded the prior year. Layoffs and discharges declined by 24,000 in June to a level of 42,000 in the month. The layoffs and discharges rate dropped from 1.4 in May to 0.9 in June. The number of layoffs and discharges occurring over the month was the lowest level recorded since May 2019.
Over the past 12 months, the number of layoffs and discharges in the state has declined by 21,000. The increase in job openings can be taken as a proxy for increasing business optimism, while the number of quits can be a proxy for increased optimism among employees who feel more confident about finding another position.
Georgia’s Inflation Rate
The annual inflation rate in Georgia eased to 10.6% in October of 2022 from 11.5% in the previous month. It was the softest inflation rate since June of 2021, as prices slowed for food and non-alcoholic beverages (15.8% vs 16.4%), and transport (11.6% vs 14.1%). Conversely, costs rose faster in housing and utilities (13.5% vs 12.2%), restaurant and hotels (16.8% vs 15.7%), and miscellaneous goods and services (12.1% vs 11.7%). On a monthly basis, consumer prices rose by 0.5%, slowing from 0.8% in September.
Georgia Job Growth
There were 4,834,900 jobs in Georgia in September 2022 according to the CES survey of employers. The CPS survey of households showed 5,126,286 employed persons for the month. Georgia added 13,000 jobs in September 2022 according to the CES survey while the broader CPS employment measure fell by 2,909 (Comparing CES and CPS employment numbers.).
Total Employment in Georgia
CES employment in September 2022 for Georgia is at a new high of 4,834,900. CPS employment in Georgia reached a maximum of 5,135,511 in July 2022. 9,225 jobs have been lost in Georgia since then according to the household survey.
Georgia Employment History
Date CES Employment CES Month/Month CPS Employment CPS Month/Month
| September 2022 | 4,834,900 | 13,000 | 5,126,286 | -2,909 |
| August 2022 | 4,821,900 | 13,200 | 5,129,195 | -6,316 |
| July 2022 | 4,808,700 | 9,100 | 5,135,511 | 960 |
| June 2022 | 4,799,600 | 15,900 | 5,134,551 | 10,405 |
| May 2022 | 4,783,700 | 19,400 | 5,124,146 | 17,430 |
| April 2022 | 4,764,300 | 17,800 | 5,106,716 | 20,648 |
| March 2022 | 4,746,500 | 18,200 | 5,086,068 | 17,650 |
| February 2022 | 4,728,300 | 28,600 | 5,068,418 | 21,131 |
| January 2022 | 4,699,700 | 25,000 | 5,047,287 | 22,063 |
| December 2021 | 4,674,700 | 23,300 | 5,025,224 | -974 |
| November 2021 | 4,651,400 | 17,100 | 5,026,198 | 2,575 |
| October 2021 | 4,634,300 | 30,500 | 5,023,623 | 12,288 |
Source: Department of Numbers
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