In April, there were 717 initial claims for unemployment insurance in the Savannah metro area (Chatham, Effingham and Bryan counties), down substantially from 906 claims in April 2014.
That’s a big decline, and it is yet more evidence that the regional economy seems to be in steady growth mode.
According to the most recent estimates from the Georgia Department of Labor, nonfarm employment in the state in April was up 3 percent from a year earlier, which is considerably faster than the rate of population growth.
Savannah metro area employment improved even more quickly, with 4.6 percent growth between April 2014 and April 2015. Private sector employment grew a whopping 5.6 percent.
Several months ago, we had speculated that construction employment had bottomed and might be rebounding. According to these latest estimates, the construction sector added about 400 jobs over the last year — a solid 7 percent increase.
The manufacturing sector added 800 jobs between April 2014 and April 2015 — a 5.1 percent increase.
The leisure and hospitality sector added 1,400 jobs in the same time period — a 5.7 percent increase.
Even more jobs were added in the broad category of professional and business services. The sector added 3,400 jobs over the past year for a 17.9 percent annual increase.
These are impressive, broad-based gains, but don’t expect such vigorous numbers indefinitely. It’s simply impossible for a metro area to continue adding jobs at a rate that’s approximately three times the rate of population growth.
And the U.S. economy will eventually experience another recession. Since World War II, we have had a recession every 6 to 7 years, on average. The so-called “great recession” ended in early 2009. You do the math.
The April unemployment rate for the Savannah metro area was 5.5 percent, down from 6.5 percent a year ago.
Keep in mind that the unemployment rate and other labor force characteristics are determined by a different survey than the one used to estimate payroll employment. But both surveys show strong job growth and a growing labor force in Savannah.
All of Georgia’s metro areas saw year-over-year declines in the unemployment rate in April, but several also saw a decline in the number of workers in the labor force, including Albany, Columbus, Hinesville, Macon, Rome and Warner Robins.
By contrast, the size of the Savannah metro area labor force increased by an estimated 1.8 percent between April 2014 and April 2015. Again, that’s faster than the pace of population growth.
I continue to be worried about the soft economies in many parts of the state, especially rural areas of south and middle Georgia, but so far the Savannah area seems to be capable of thriving even as other areas struggle.
City Talk appears every Sunday and Tuesday. Bill Dawers can be reached via billdawers@comcast.net. Send mail to 10 E. 32nd St., Savannah, GA 31401.