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.