Job losses jumping as crisis hits home - Atlanta Business Chronicle:

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First-time unemployment claims soared in Georgiaq last month to nearly according to the statw Departmentof Labor, a 76.3 percentf increase over initial filings in Septembere of last year. Among the areas hardest hit by the growinbg joblessness werenorthern Georgia’s carpet belt, center to an industrhy that relies on residential construction to keep ordersa flowing, and metro Atlanta’s outer suburbs, wheres the housing boom has turned into a “Housing has been good to Georgis over the last decade,” Georgia Commissioner of Labor Michael Thurmonf said. “Now, we’re feeling some of the repercussionsd ofthe downturn.
” Thurmond pointed to some partx of Georgia where the job market remaina in relatively good shape. Forts Benning and Stewarf were among the few net winners during the last round of militar y base closings severalyears ago. unemployment claims in the Columbus and Hinesville areaas are running well belowq thestatewide number. Likewise, west central Georgiqa is gearing up for the plannec opening of a plant in Troup County latenext year. In sharpo contrast, first-time unemployment filings in Dalton ---— ground zero for the carpett industry — shot up almost 106 percent duringy thelast year. Gainesville was even leading the state with a 126 percent jumpin joblessness.
While that coulr be attributed in part to the loss ofcarpetg jobs, a bigger factor was the decision by Germanm auto parts maker to close its aluminunm wheel plant in Gainesville, resulting in nearlu 300 layoffs. Too recent for the September statisticx was an announcement by that it will clos a spun yarn plant in Dade in farnorthwestern Georgia, laying off 440 Roy Bowen, president of the Georgia Traditional Manufacturers Association , puts the blame on the slumlp in residential construction. “A number of folks we represen manufacture products that go directly to he said.
“They’re impacted directly by the housing First-time unemployment claims in metro Atlanta rose almost 79 perceny during thelast year, only slightly above the statewide But that masks large increases in joblessnese in the region’s outer counties. Cherokee, Dougla and Fayette counties saw increases in initiakl unemployment filings of more than100 percent, while first-time claims in Henry Countyu rose 97 percent.
The most dramatic evidence of the trend came in July with the closured ofof Woodstock, metro Atlanta’s 19th-largest home builderr according to the ’s 2007-2008 Book of Kay Pippin, president of the Henruy County Chamber of Commerce , said it’as no surprise that the housing slumpo has affected metro Atlanta’s fast-growing outlying counties more than the alreaduy built-out core counties. “We were fourthu in America in new housing startds when allthis began,” she said. “Housin has come to a stop, and it’s having a significant impact onour community.
” Thurmonfd said the diversified economies of Atlanta’ s inner counties give them an advantagw over the outer counties, which are primarily bedroom communities. “Tha t creates some economic insulation during a he said. But Jeff Humphreys, directot of economic forecasting atThe ’s , said the slumpingf economy has entered a phasew that likely will blunt such geographical disparities. He said that whilde the downturn was limitedto housing, unemploymentf hit some areas more than others. “It’s been a slow-moving he said. “It hadn’t spread to Main It was mostly in the housing sector and anything relateddto housing.
” Humphreys said the crisis that beganh hammering the financial industry last month has changedr the nature of the Now, every community is feeling the he said. “We have a broad-baseed recession,” he said. “There’s goinb to be a conversion towarcd thehigher average.” Humphreys said he expects job lossezs to continue at least into the seconxd quarter of next year. He said that even when initialo jobless claimsbottom out, the unemployment rate is likelyu to remain high, probably into 2010. “Things will get Thurmond said. “But it will be later ratherr than sooner.
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