News release, July 20, 2000

Georgia Department of Labor - Press Release
Georgia Department of
Labor
Suite 642 148 International Boulevard N.E.
Atlanta, Georgia 30303-1751 (404)656-3032

July 20, 2000

FOR IMMEDIATE RELEASE

SEASONAL FACTORS IMPACT UNEMPLOYMENT RATE RISE IN JUNE

ATLANTA -- State Labor Commissioner Michael Thurmond said today that several factors combined to push the state's unemployment rate up to 4.1 percent in June, but the rate is still the lowest ever recorded in Georgia at this time of year. While down from 4.6 percent in June of last year, the rate was up from 3.3 percent in May.

"The unemployment rate always goes up in the summertime," Thurmond said, "because students from high schools and colleges enter the workforce looking for part-time or full-time jobs and while they're searching they're counted as unemployed. Couple that with a loss of seasonal jobs among para-professionals, school bus drivers, and cafeteria and maintenance workers at public and private schools and at day care centers and the rate goes up every year at this time.

"Another factor that also may have contributed to the rise in unemployment," Thurmond continued, 'is The Federal Reserve's policy of raising interest rates to contain wage inflation brought on by our labor shortage. The Fed's policy is intended to offset the inflationary effect of employers having to compete for skilled workers by bidding up wages. I maintain that a better way to combat this problem is to train more workers to meet employer needs. There are many potential workers, such as those with disabilities, former welfare recipients, senior citizens, and rehabilitated ex-offenders who will be productive employees if they are provided with the proper education and training and matched up with available jobs. Given the necessary skills, they'll be able to move more easily into the workforce and help alleviate our state's current labor shortage."

While jobs in Georgia declined to 4,012,700 in June, down by 3,000 from May, jobs have risen by 104,700, or 2.7 percent, in the past year. At the same time, the increase in the state's workforce has not kept pace with job growth. The state's civilian labor force is up by only 76,500, or 1.9 percent.

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Georgia Department of Labor - Press Release

Labor market data are available on the Georgia Department of Labor's Web site at www.dol.state. ga.us

NEWS MEDIA NEEDING MORE INFORMATION MAY CALL (404) 656-3032.

E-mail: communications@dol.state.ga.us.

FY-01-28

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