ATLANTA —
Georgia’s economy will continue adding jobs and growing personal income for the rest of the year despite potential international problems, according to a university economic forecast released Wednesday.
Georgia State University’s Economic Forecasting Center’s quarterly outlook points to an addition of 74,100 jobs during 2014. That’s fewer than the 83,400 new hires the previous year, but this year lost ground due to unusually severe winter weather, the economists said.
“The Peach State job engine is indeed humming,” said Rajeev Dhawan, director of the center.
Next year will be back to the 83,000 pace, he said.
All of the state’s 11 metropolitan areas are expected to see employment growth this year, except for Warner Robins, which is feeling the sting of cuts in civilian military personnel.
While the number of people earning a paycheck is forecast to increase 1.8 percent statewide this year, the most vibrant cities will be Atlanta, Savannah and Gainesville, which are all expected to grow 2.2 percent.
The Coastal Empire added more than 230 net jobs between April and July, with the most robust sectors being business/professional services, education/health, manufacturing and government. On the other hand, leisure/hospitality and retailing both shed jobs.
“The outlook remains positive for the (Savannah area) as the region’s main engine of growth, the Ports Authority, posted a record year for traffic,” the forecast notes.
At the same time, employment ranks are expanding in Savannah and statewide and personal income is rising as well. The forecast calls for it to climb 3.5 percent.
Fatter wallets will also boost tax collections and the sales of homes and cars. Ironically, it’s not boosting the sales of furnishings, which normally go hand-in-hand with home sales.
“When it comes to buying furnishings, we are seeing a puzzle,” Dhawan said.
The overall economy for Georgia has hanging over it the potential for problems triggered by the militant Islamic State of Iraq and Syria, clashes between Russia and Ukraine, and weakening economies in China and Europe. On the other hand, consumer confidence is at its highest since before the recession, and stock market records keep fueling the “wealth effect.”
“Thus, domestic positives and global negatives cancel out each other to maintain a corporate hiring pace of 23,400 of 2013 and 25,500 in 2014,” Dhawan said.
Corporate jobs, also termed business and professional services, are generally white-collar positions prized by workers and economists, both, because of their relatively high pay and benefits.