Recent Job Growth in Georgia and the US: Insights from Treasury Secretary Janet Yellen
In May, Georgia saw a significant addition of 9,200 jobs, according to the Georgia Department of Labor. Over the past year, the state has added 73,900 jobs, marking a 1.5% increase. Nationally, the economy added 272,000 positions in May, with a total of 2.76 million jobs added over the past 12 months, representing a 1.8% growth rate1.
Insights from Treasury Secretary Janet Yellen
During her visit to Atlanta, Treasury Secretary Janet Yellen touched on several pressing economic issues, including job growth, labor force participation, and inflation. She emphasized that the dramatic rebound from the pandemic, fueled by substantial government spending in 2020 and 2021, has naturally moderated as the economy nears full employment.
“You would expect that growth to moderate as you got closer to full employment, and I think that’s what happened,” Yellen said2. She highlighted that the share of Americans working or looking for work has not returned to pre-pandemic levels, partly due to an aging population and increased retirements during the pandemic.
Labor Force Participation
Yellen pointed out that while overall labor force participation has declined, focusing on “prime age participation” — hiring people between 25 and 54 — reveals a more optimistic picture. “If you look at the labor force participation at a young age, it has been very high,” she noted2. The employment rate for this age group is higher than it was before the pandemic, although slightly lower than its peak in 2000.
Addressing Inflation
Inflation remains a significant concern for Americans, impacting voter satisfaction with the Biden administration. Yellen acknowledged this, stating, “We see Americans increasingly getting ahead — we see inflation coming down. But on the other hand, we know that families are being squeezed by high costs”2. Although the Federal Reserve’s interest rate hikes have helped reduce inflation, housing and apartment prices continue to rise, affecting overall inflation rates.
Focus on Housing
Yellen also discussed the administration’s efforts to address the housing crisis, acknowledging that while some progress has been made, much of the issue is local. “We know that many American families have been struggling to find affordable housing. There is very little of it,” she said2. The administration supports bills aimed at increasing housing supply and affordability, but local policies often play a crucial role in these outcomes.
Conclusion
The recent job growth in Georgia and across the US reflects a steady economic recovery, albeit at a moderated pace as the nation approaches full employment. Treasury Secretary Janet Yellen’s insights underscore the complexities of labor force participation and the ongoing challenges of inflation and housing affordability. As the economy continues to evolve, the focus remains on sustainable growth and addressing the critical needs of American families.
This comprehensive look at job growth and economic insights from Secretary Yellen provides a clearer understanding of the current state of the economy and the factors influencing it. The focus on labor force participation and inflation highlights the ongoing efforts to ensure a balanced and inclusive economic recovery.