Economist says job growth will be slower than most post-recession recoveries

Wednesday, Feb. 24, 2010 10:10 AM
Last updated 2:50 PM
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ATLANTA – Georgians expecting a brisk bounce back in the economy and rapid job creation due to pent-up demand are thinking of the wrong type of recovery, according to a Georgia economist.

“Previous sharp recoveries were accompanied by a strong recovery in jobs – one that is notably absent at present as investment spending, a leading indicator of job growth, continues to be weak,” said Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University.

The center released its quarterly forecast this morning.

Problems at Georgia’s banks hampers the recovery here because there’s little lending available for companies that do want to expand. Besides the 33 bank failures in Georgia since 2007, two out of three remaining banks are operating under regulators’ orders to modify their practices.

Georgia will continue losing jobs until late in the year for a 2.0 percent decline, Dhawan predicted.

For individual metro areas, only Columbus with its infusion of new soldiers will experience job growth this year.

Employment reductions in other cities will range from 1.4 percent in Athens to 0.3 percent in Augusta and Savannah.

In Augusta during 2009, only transportation/utilities, professional services, education/health and government added jobs. Manufacturing and construction were the source of the biggest payroll losses.

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themaninthemirror 02/24/10 - 01:26 pm
Even with the new tissue

Even with the new tissue manufacturing companies that are slated to come here, unemployment will still be rampant.

GAterp 02/24/10 - 01:49 pm
And it is noteworthy that in

And it is noteworthy that in the recent jobs bill passed by the US Senate that the (6) senators from SC, GA, and AL all voted against the bill. So in a small way you've got nobody to blame but yourselves.

dominionfs 02/24/10 - 01:57 pm
All that college and the best

All that college and the best they can come up with is something any fourth-grader could have guessed.

Chillen 02/24/10 - 02:11 pm
gaterp Just putting a new

gaterp Just putting a new title on the stimulus bill does not mean that it actually created jobs. In fact, it is highly in dispute right now that it had much impact at all saving jobs. Even Obama's administration can't come up with any specifics.

According to the non-partisan CBO: "five programs accounted for more than 80% of the outlays from ARRA in 2009: Medicaid, unemployment compensation, Social Security ... grants to state and local governments ... and student aid."

So, a full 80% of the "stimulus" bill was actually a stimulus to other government agencies who give cash and benefits to those who are not working. That doesn't sound like a "jobs bill" to me.

Taylor B
Taylor B 02/24/10 - 02:42 pm
This writer must be

This writer must be moonlighting from his full time gig at "No Duh" magazine.

soldout 02/24/10 - 02:43 pm
For the Christian our best

For the Christian our best move is to continue to be givers and sow while we can, as we may need a crop later. God will supply all your needs according to His riches.

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