In contrast, there was an increase of 2,500 jobs in the information sector, which also includes film production. And while hospitality lost some ground in January, the sector is up 11% from a year ago, employing 296,000 people, according to the Bureau of Labor Statistics.
And although the region’s unemployment rate rose to 3.2% from 2.6% in December, that too was at least partly positive: More than 12,000 people entered the labor market, often a sign that unemployed people believe that there are jobs.
Despite the January dip, the region added 117,500 jobs over the past 12 months, according to the Labor Department. In addition, February is a historically good month with an average of 4,835 new jobs.
Still, the outlook for the remainder of 2023 is clouded by greater concerns about interest rates and inflation, with hiring plans complicated by the Federal Reserve’s determination to stamp out inflation through interest rate hikes and a slowing economy.
While the collapse of the Silicon Valley bank last week could prompt the Fed to delay the next rate hike, the 16 months of hikes have at least dampened the job market.
With more than 3 million jobs, Metro Atlanta accounts for 62% of the state’s jobs.
What was once a booming tech sector has seen a slump in demand for many skills, said Lori Sargent, senior vice president of global staffing firm Randstad, based in Atlanta. “We’re seeing a slowdown in IT.”
Layoffs have been announced at a number of high-profile companies, including Google, Meta, Amazon, Microsoft and Atlanta-based Greenlight Financial.
Plus, it’s not just techies who are feeling a change in the air, she said.
Workers who were quick to leave a job for better pay or hours a year ago are now more likely to hold on to what they believe to be a reliable paycheck, Sargent said. “Last year it wasn’t hard to get people to disembark if we were willing to pay them the money they wanted. At the moment, people are not so quick to jump overboard.”
This change is also reflected in a drop in the number of jobs listed as open, said Daniel Altman, chief economist at Instawork, which connects businesses and people who want flexible hours.
“The Fed created uncertainty,” he said. “This has resulted in some companies being reluctant to hire.”
Pessimists fear the Fed appears poised to cause a recession and the loss of millions of jobs if it takes it to bring inflation down to levels they can tolerate. But with inflation falling since last summer’s peak, hope remains that deep pains aren’t needed.
Hopes for a “soft landing” are fueled by data showing the current economy looks very similar to what it was before the pandemic, when inflation was low, Altman said.
The proportion of prime-aged people who are working has risen back to where it was in February 2020, while the unemployment rate remains historically low, he said. “A soft landing is still on the table.”
Five things to know about the Metro Atlanta job report
1. January sees job losses continue as retail and logistics companies lay off workers hired just for the holidays.
2. Losses this year were far less than usual. This was the second-best January on record.
3. Atlanta’s unemployment rate has risen slightly, partly because of these seasonal layoffs, but also because of the growth in the labor force — that is, the number of people looking for work.
4. The growth in the labor force is a sign that many people who haven’t worked before think there are jobs.
5. The sectors with the most job losses in January were retail and transport and warehousing, ie logistics.
Metro Atlanta loses the least in January
1st 2019: -29,800
2. 2023: -30,100
3. 2005: -35,100
4. 2013: -35,500
5. 2021: -35,800
Sectors with worst job losses, January 2023
Retail: -9,600
Logistics: -5,200
Sector with job gains, January 2023
Details: 2,540
Labor force* change, January
Average, before the pandemic: -4,720 (2000-2019)
Last: 12,564 (2023)
unemployment rate
Pre-pandemic low: 2.6% (Dec 2000)
Highest, before the pandemic: 11.1% (June 2009)
Last: 3.2% (January 2023)
So far: 2.6% (Dec 2022)
*Labor force includes all people either working or actively looking for a job.
** Unemployment only includes unemployed people who are actively looking for work.
Sources: Bureau of Labor Statistics, Georgia Department of Labor
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