Regional Payroll Growth Rebounds in March
According to last week's regional and state employment report from the U.S. Bureau of Labor Statistics (BLS), Sixth District states added 41,500 payrolls on net in March, and the unemployment rate rose slightly from 6.4 percent to 6.5 percent. This month's release also came with an upward revision to February data that indicated the District added 40,500 jobs that month, about 6,100 payrolls higher than the original February estimate. The table gives a state-by-state breakdown of payroll revisions:
The new March data and revised February data appear to be another step in the right direction and perhaps give a somewhat stronger signal that the region's labor markets are gaining some traction after experiencing a few months of slower job growth earlier in the year, a pattern not uncommon over the last few years. Not surprisingly, we've seen a similar pattern in the national data as well (see the chart).
Once again, Florida was the primary driver of Sixth District payroll growth in March, adding 22,900 payrolls, with Georgia seeing a nice rebound (up 14,600) from February's negative payroll growth (when it was down 5,800). The only state to lose jobs from February to March was Mississippi, which shed 1,400 payrolls. This was the fourth straight month of net payroll losses in that state.
Florida's net payroll gain was the largest one-month addition of any state in the nation, according to the BLS report, and was driven by the leisure and hospitality sector (up 9,500), health care (up 3,300), construction (up 1,900) and manufacturing (up 1,500), and Georgia's net payroll gain—the third-largest of any U.S. state—was driven by retail (up 3,800), the professional and business services sector (up 3,300), and health care (up 3,200).
As for other District states, Tennessee experienced a modest gain in payrolls in March, adding 4,200 jobs. With the largest revision of any Sixth District state, Tennessee's February net payrolls were revised up 3,400 payrolls for a total of 10,300 payrolls. Tennessee's payroll growth over the two-month period of February and March was primarily concentrated in professional and business services (up 6,800 payrolls). Louisiana and Alabama respectively added 900 and 300 jobs in March (see the chart).
The aggregate unemployment rate for the Sixth District rose from 6.4 percent to 6.5 percent in March. Half of the six District states experienced an increase in their unemployment rates (Alabama, Florida, and Mississippi), and Louisiana's rate remained unchanged, Georgia's fell from 7.1 percent to 7.0 percent, and Tennessee's fell from 6.9 percent to 6.7 percent (see the table).
Want to find out how many jobs it would take to lower the unemployment rate in any of the 50 states? Check out the Atlanta Fed's State Jobs Calculator.
The BLS's next regional and state employment report, which will reflect April data, will be released May 16.
By Teri Gafford, a Regional Economic Information Network director in the Atlanta Fed's Birmingham Branch
Mark Carter, a senior economic analyst in the Atlanta Fed's research department
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