Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State University, expects moderate job growth for the rest of 2017.
Dhawan issued his forecast for the third quarter on Wednesday, August 23. He says that Georgia’s income and job growth has been affected due to domestic demand driven sectors, such as hospitality, retail and education, not showing much growth.
“Given what’s been happening with interest rates, what’s been happening with what’s been coming out of Washington, what’s been happening with what people are doing, people are already spending a lot and it still didn’t grow,” said Dhawan.
Job growth in the second half of the year will not see an increase from the first half as it has in the past two years.
Dhawan says that although manufacturing jobs have recently slowed down, employment in sectors such as finance, wholesale trade and transportation is expected to increase at a modest level.
Increased construction in Atlanta, Savannah and other cities throughout the state has increased sales tax collection in Georgia.
“Georgia tax revenue growth has moderated,” Dhawan said. “With the caveat that sales tax collections had a recent uptick due to ongoing construction activity.”
In regards to housing permits, Dhawan says that there will be a little bit of increase in single-family permits but moderation on multifamily permits.