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In early 2008, the housing market dropped into a ditch —- dragging the Georgia economy with it —- and Clyde Patrick was laid off. The company where the Conyers man worked had done excavation and site clearing for construction projects. But there were no new projects. Patrick, 49, has been looking for work since.
He is part of a swelling pool: 13.7 million Americans were officially unemployed in April, raising the jobless rate to a 25-year high of 8.9 percent, up from 8.5 percent in March, the Bureau of Labor Statistics reported Friday. More than 27 percent of the unemployed —- 3.7 million people —- have been out of work at least six months, the BLS said. For many, including Patrick Clyde, that joblessness has outlasted their unemployment benefits —- which in most places are just a fraction of their lost incomes. “This is putting some drain on savings,” Clyde said.
In April, the economy lost an estimated 539,000 jobs, losses that would have been worse had the government payrolls not grown by 72,000 as Census workers were hired, the BLS said Friday. Yet, there was also a foothold for hope: job losses were the lowest since October. The economy has shed 2.66 million jobs this year after dropping 1.7 million jobs in the last three months of 2008.
“I think employers are trying to get ahead of the downturn and lay people off before it impacts their profitability,” said Emily Sanders, president and CEO of Sanders Financial Management in Norcross. “I do think that the job- loss story will continue and we will hit 10 percent.”
When the BLS adds the officially unemployed, people too discouraged to look for a job and the nearly 9 million workers who can only find part-time employment, the rate is 15.8 percent. For just men, the jobless rate in April was 10 percent. For blacks, it was 15 percent.
Georgia’s economy has suffered sooner and suffered more than most, as the state was hammered by woes in construction, real estate and the financial sector. So if —- as some experts say —- the inventory of unsold homes has peaked, then Georgia could be passing the worst of the downturn. But that is not the same as improvement, Sanders warned. “Most jobs in Georgia are retail, so if the consumers are not spending more, that will be a drag.”
And consumers are hampered, on one hand, by a fall in housing values and job insecurities, and on the other, tougher credit. Yet even in the worst of recessions, millions of Americans do find work —- just not as many as are losing jobs.
Mike Rieman, 32, of Kennesaw has done both. He lost his job last year as a senior account executive for a long-established public relations firm. “I had never been unemployed. It came completely by surprise. I did not see it coming. The first time I set foot in the unemployment office I wanted to cry.”
He might have teared up again when he looked at his unemployment check. Even with the recent boost to benefits, it came to about $350 a week —- a fraction of his previous pay. “I was concerned. I have two small children.”
His wife was looking for work too, and they had a deal: First one to be hired would go to work and the other would stay home. He sent “at least 200” resumes and had five interviews. But one worked out. He landed a job with Flammer Relations
“I love the job,” he said. “I hope I never have to go through that again.”
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