Economist touts Augusta economy

Wednesday, May 26, 2010 10:10 AM
Last updated 2:51 PM
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ATLANTA - - Augusta had the state's second-best economy growth in the first three months of the year and a forecast released today predicts it will keep that ranking throughout 2010.
In a state where the employment base shrank 3.4 percent in the first quarter, Augusta's 0.1 percent reduction looked good in comparison. Atlanta, for example, has the state's worst economy and will remain mired in last for the balance of the year.
Augusta's loss of 296 jobs during the last quarter came mainly in manufacturing and construction, along with finance, wholesaling and hospitality.
"This figure was a significant improvement from the 8,500 and 5,600 job losses reported in the third and fourth quarters of 2009," notes the report from the Economic Forecasting Center at Georgia State University.
The new jobs came from professional & business services, retailing and government.
Overall improvement in Georgia's economy will boost Augusta's workforce, too, by 1.1 percent in 2010, even though the state as a whole will still be shedding jobs at about that rate.
The vitality of Georgia's fledgling economic recovery is being threatened by Greece's financial crisis, the oil spill in the Gulf of Mexico and a volcano in Iceland, according to Wednesday's forecast.
Rajeev Dhawan, director of the Forecasting Center, described the threats in terms of fires. The volcano would be a single-alarm fire if smoke and ash ground flights over Europe for an extended period for its potential impact on the state's tourism and airline industries.
More serious is the possible three-alarm "fire" that's the oil spill which could expand to a five-alarm blaze if it completely halts Gulf tourism and oil exploration, triggering more bankruptcies which would be felt in Georgia as the leader of the Southeast region.
"But the fire with the biggest consequences s the one burning across the pond," Dhawan said.

Exports to the countries that use the euro from Georgia totaled $5.1 billion last year to account for 18 percent of the state's exports.
Georgia is already lagging the rest of the United States in job creation, losing jobs in most sectors while the nation was adding them since December. The forecast predicts that trend will continue the rest of the year, raising the unemployment rate here to 10.6 percent.
Shrinking employment in construction and in state and local government is the main reason Georgia's hiring will continue to be weak. The over supply of housing and office space that led to the recession hasn't been whittled down yet, and banks aren't in a position to lend anyway.
Weak tax collections are forcing governments to contract, especially as most of the federal stimulus money has been spent. At 13.5 percent of the employment base, the government sector is as large as the corporate sector. So teacher layoffs and other government cut backs will take fuel out of the state's recovery, according to the forecast.
"A broad-based recovery will begin in 2011 when even the construction sector adds jobs," the forecast states. "Government job creation will remain marginal, but with manufacturing picking up steam, overall numbers will rise."

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corgimom
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corgimom 05/26/10 - 09:23 am
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"Augusta's loss of 296 jobs

"Augusta's loss of 296 jobs during the last quarter came mainly in manufacturing and construction, along with finance, wholesaling and hospitality.
"This figure was a significant improvement from the 8,500 and 5,600 job losses reported in the third and fourth quarters of 2009," notes the report from the Economic Forecasting Center at Georgia State University."

These numbers are staggering. Over 14,000 jobs were lost. I knew it was bad, but I didn't know it was THAT bad.

***************************************

But AC- could you please edit this sentence so that it makes sense?

"It started in Greece, spread to the rest of Europe and is not threatened the survival of the Eurozone as a currency union."

What?

happychimer
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happychimer 05/26/10 - 09:29 am
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Why is this story posted

Why is this story posted twice on this page?

Sean Moores
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Sean Moores 05/26/10 - 10:22 am
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Thanks happychimer. I fixed

Thanks happychimer. I fixed it.

countyman
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countyman 05/26/10 - 11:39 am
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''Augusta had the state's

''Augusta had the state's second-best economy growth in the first three months of the year and a forecast released today predicts it will keep that ranking throughout 2010''.

I love it!

baronvonreich
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baronvonreich 05/26/10 - 12:30 pm
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countyman turn out the lights

countyman turn out the lights when it is over because you will obviously be the last one to leave Richmond County.

jb1234
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jb1234 05/26/10 - 12:57 pm
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I might have missed it, but

I might have missed it, but did the article say what the 'best economy' in the state was?

countyman
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countyman 05/26/10 - 01:55 pm
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jb1234... The article didn't

jb1234... The article didn't say, but it could be Savannah or Columbus.. Or one of the smaller cities like Brunswick, Valdsota, Rome, or Statesboro..

Baronvoreich please give it up... Augusta has the second best economy in the state in 2010. Their is no way you can get around those facts, no matter how negative you want to be..

Did you happen to read this quote from the article''Overall improvement in Georgia's economy will boost Augusta's workforce, too, by 1.1 percent in 2010, even though the state as a whole will still be shedding jobs at about that rate''.

And why did you feel the need to bash Richmond county daily? For some reason I don't see any posters from Richmond county bashing Columbia County daily?

baronvonreich
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baronvonreich 05/26/10 - 01:59 pm
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countyman - in which year

countyman - in which year will every Richmond County resident be working for the government?

Brad Owens
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Brad Owens 05/26/10 - 04:33 pm
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This is good news. baron,

This is good news. baron, this is good news.

Brad

disssman
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disssman 05/26/10 - 04:48 pm
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One thing we are not lacking

One thing we are not lacking is illegal aliens in the construction sector. I find it amazing that Georgia is behind the rest of the U.S. in job creation. I guess thats the old attitude that if it was good enough for the 1990s, it is good enough for today. I don't know of anything else to attribute it to.

lifelongresidient
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lifelongresidient 05/26/10 - 05:25 pm
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dissman, you hit the nail on

dissman, you hit the nail on the head....go out to any new home construction site...CROWN BUILDERS i was there looking at house when a county gov't vehicle(possibly lic/insp) pulled up you should have saw them scatter......

corgimom
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corgimom 05/26/10 - 05:37 pm
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"And why did you feel the

"And why did you feel the need to bash Richmond county daily? For some reason I don't see any posters from Richmond county bashing Columbia County daily?"

jb, feel free to say nunya

corgimom
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corgimom 05/26/10 - 05:44 pm
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You know, seriously-

You know, seriously- Charlotte home owners, who used to have tons of illegals doing home construction, until the sheriff started deporting them- are now finding, much to their dismay, that their houses have been built with shoddy labor, because illegals don't know or care about US building codes.

People are also having serious roof problems, because the illegals don't have the proper experience to roof. Putting adobe tiles on a hut is not the same as shingling a roof.

A plumber told me that one of his customers had to spend $15,000 to repair the dreadful plumbing work done under her floor. Her washer was draining under her floor- and the subfloor wasn't concrete but was made primarily of patching mix. The concrete had been jacked out and patching mix was used to replace it.

Homeowner's insurance doesn't cover it, and the statute of limitations has run out against the builder- meaning the homeowner is stuck.

jb1234
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jb1234 05/26/10 - 07:58 pm
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"Putting adobe tiles on a hut

"Putting adobe tiles on a hut is not the same as shingling a roof."

This made me laugh out loud, thanks corgi. :)

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