Still growing...and growing

VOLUME 67, NUMBER 1 THE UNIVERSITY OF GEORGIA FIRST QUARTER 2007 Still growing...and growing Beata D. Kochut According to the most recent Metropolitan Statistical Area definitions, 70 counties in Georgia have qualified as parts of the 15 Metropolitan Statistical Areas, and 31 counties qualified as parts of the 24 Micropolitan Statistical Areas. The number of metropolitan statistical areas in Georgia almost doubled between 1990 and 2000, from 8 metro areas in 1990 to 15 in 2000. The number of metropolitan counties climbed from 42 in the 1990s to 70 in 2000. In 2005, over 90 percent of Georgia s population lived in Core Based Statistical Areas (over 80 percent, or 7,328,309 people in metro areas, and 925,832 or over 10 percent in micro areas), and only 9.2 percent (818,435) lived in non-core Based Statistical Areas. Core Based Statistical Areas are most concentrated across the northern half of the state, especially in the northwestern quarter, where most of the counties are classified as parts of either metropolitan or micropolitan areas. The Chattanooga and Atlanta Combined Statistical Areas span across state lines, and, together with the Dalton and Rome metro areas sandwiched between them, form an uninterrupted band of metropolitan area counties that stretch westward from Athens and Gainesville into Tennessee and Alabama. In eastern Georgia, the Augusta Metropolitan Area is separated from the contiguous metro areas of Savannah, Fort Stewart, and Brunswick by just one rural county. The Savannah and Hinesville-Fort Stewart MSAs now form a block of five metro counties classified as a Combined Statistical Area, in place of just three counties (Bryan, Chatham, and Effingham) that were classified as metro counties in 1990. Directly south, and adjacent to the Savannah-Hinesville-Fort Stewart Combined Statistical Area, three more counties have qualified as metro counties, and now form the Brunswick Metropolitan Area. West from Brunswick, the string of Micropolitan Statistical Areas of Jesup, Waycross, Douglas, Fitzgerald, Tifton, Moultrie, and Thomasville roughly follows the South Georgia Parkway and connects to the new Valdosta Metropolitan Area in the center of the state s southern edge, and to the Albany MSA. Most of these micropolitan areas experienced a population increase of at least 13 percent in the last decade. The Americus Micropolitan Statistical Area connects the Albany and Columbus MSAs, which in turn touch the southern edge of the Atlanta MSA; and only one rural county separates it from the Macon-Warner Robins-Fort Valley Combined Statistical Area to the east. Although the metropolitan area designation is related to the urban-rural classification, the two are not equivalent. In fact, metro counties that surround urban areas may themselves be rural, or suburban with large rural areas. Moreover, many metropolitan areas contain relatively small urban clusters and much larger rural areas that are bound to the urban core by commuting patterns. Metropolitan county designation may point both to the economic vitality of the urban core, and to the lack of job opportunities in the county itself.

2 As metropolitan area designations tie together demographic and economic patterns, they reveal the outlines of fast growing areas, which derive their economic vitality from a significant degree of integration with urban cores. With at least 25 percent of employment interchange with a core county, and a generally accepted multiplier effect of two to three jobs created by any one job in the metropolitan county, over 50 percent of income in metropolitan counties stems from the integration with surrounding areas. Population G eorgia s Metropolitan Statistical Areas range in size from the Atlanta MSA, home to almost 5 million people, or over half of the state s population, through Augusta (the Georgia portion only) and Savannah, which each have populations of over 300,000, Columbus and Macon with populations in the 200,000 range, and smaller MSAs ranging from Athens (175,085) to Valdosta (124,838). Brunswick, Rome, and Hinesville-Fort Stewart are the smallest of the state s metropolitan areas, with populations under 100,000. Atlanta is, by far, the most populous and the most densely populated of Georgia s metro areas. The 28-county metro area GEORGIA BUSINESS AND ECONOMIC CONDITIONS Volume 67, number 1 SELIG CENTER FOR ECONOMIC GROWTH Robert E. Hoyt Interim Dean Jeffrey M. Humphreys Director Lorena M. Akioka Editor Beata D. Kochut Research Analyst Ian Armit Data Manager GEORGIA BUSINESS AND ECONOMIC CONDITIONS (ISSN 0297-3857) is published quarterly by the Selig Center for Economic Growth, Terry College of Business, The University of Georgia, as a service to the business and academic communities. Signed articles reflect the author s opinion but not necessarily those of the Selig Center for Economic Growth, Terry College of Business, or The University of Georgia. This publication is sent free of charge upon request. Postmaster send address changes to: Selig Center for Economic Growth, Terry College of Business, The University of Georgia, Athens, GA 30602-6269. Periodicals postage paid at Athens, Georgia DEFINING METROPOLITAN AREAS In 2000 the Office of Management and Budget announced new guidelines for defining metropolitan areas. At the center of the new definitions is the concept of the Core Based Statistical Area (CBSA), defined as a county or group of counties associated with an urban core of at least 10,000 population by a high degree of social and economic integration, as measured through commuting ties. An employment interchange between the urban area and a surrounding county has to reach at least 25 percent for the county to be classified as a part of the Core Based Statistical Area. The definitions divide the CBSA into two groups, based on the size of the urban core: Metropolitan Areas have a core of at least 50,000 inhabitants, whereas Micropolitan Areas are comprised of at least 10,000 people. Core Based Statistical Areas can be grouped together, based on economic ties, into Combined Statistical Areas (two or more Core Based Statistical Areas with employment interchange of at least 15 percent). had 4,917,717 inhabitants in 2005, and registered a 14.9 percent increase from 2000, the second largest percentage increase among the state s MSAs. The adjacent, one-county Gainesville MSA s population increased by 17.6 percent between 2000 and 2005, the steepest increase among the state s metropolitan areas. On the northwest side of Atlanta, Dalton and Georgia s part of the Chattanooga MSA increased their populations by over 8 percent (and rank fourth and fifth, respectively), but the third fastest 2000-2005 population increase (13.4 percent) was registered by Warner Robins in middle Georgia. Athens in the northeast and Rome in the northwest part of the state grew by 3.7 percent and 5 percent (rank eighth and tenth, respectively) between 2000 and 2005. Most of the metropolitan portion of the Georgia s coast grew at a brisk to moderate pace of 6.9 percent (Savannah), and 5.5 percent (Brunswick), except for Hinesville-Fort Stewart, where the population dropped by 4.2 percent. The population decreases in Hinesville-Fort Stewart and in Columbus may have been caused by troop relocations at the military bases in these areas. Population increases in South Georgia s metropolitan areas ranged from 4.3 percent in Valdosta to 3.2 percent in Albany, while in the east central and central parts of the state, Augusta (Georgia part only) and Macon grew by 3.5 percent and 2.8 percent, respectively. Among the metropolitan counties, Forsyth County in the north and Henry and Newton counties in the southeastern part of the Atlanta MSA experienced the steepest growth between 2000 and 2005, with their population increases ranging from 39.7 percent to 37.8 percent. Paulding County in the northwestern part of the Atlanta MSA saw the fourth largest increase (35.4 percent). Also in the Atlanta MSA, continued on page 7 Georgia Business and Economic Conditions

3 Georgia's Metropolitan Statistical Areas (2000 definition) New MSA counties (2000 Census) (29) Existing MSA counties (40) 0 20 40 277 Miles 124 24N 24 CATOOSA DADE C Chattanooga WALKER Dalton TOWNS FANNIN 75 PICKENS Atlanta HARALSON 285 675 CARROLL ROCKDALE FAYETTE MORGAN GREENE 75 475 BIBB WASHINGTON WILKINSON JENKINS 16 EMANUEL PEACH TAYLOR MUSCOGEE Warner-Robins HOUSTON MACON CHATTAHOOCHEE MARION SCHLEY BLECKLEY LAURENS TREUTLEN MONTGOMERY TOOMBS WHEELER DODGE TELFAIR LEE Albany DOUGHERTY CALHOUN Savannah LIBERTY JEFF DAVIS BEN HILL TURNER BRYAN Hinesville-Fort Stewart QUITMAN CLAY EFFINGHAM TATTNALL CRISP TERRELL BULLOCH EVANS SUMTER WILCOX RANDOLPH CANDLER PULASKI DOOLY WEBSTER LONG APPLING IRWIN WORTH COFFEE BACON WAYNE MCINTOSH TIFT PIERCE BAKER EARLY ATKINSON GEORGIA BERRIEN MITCHELL MILLER COLQUITT WARE SEMINOLE 10 GRADY BROOKS GLYNN 95 CAMDEN CLINCH THOMAS LOWNDES Valdosta CHARLTON 75 ECHOLS Brunswick BRANTLEY COOK LANIER DECATUR 95 SCREVEN JOHNSON TWIGGS Columbus BURKE JEFFERSON Macon CRAWFORD Augusta GLASCOCK BALDWIN JONES UPSON STEWART RICHMOND HANCOCK TALBOT 520 WARREN MONROE 85 185 COLUMBIA PUTNAM JASPER BUTTS LAMAR MERIWETHER HARRIS TALIAFERRO 20 MCDUFFIE SPALDING PIKE LINCOLN WILKES HENRY COWETA TROUP OGLETHORPE 20 NEWTON 26N 126 CLARKE WALTON CLAYTON HEARD ELBERT Athens BARROW DEKALB DOUGLAS 20 MADISON OCONEE FULTON HART 26 JACKSON GWINNETT COBB FRANKLIN BANKS 985 85 FORSYTH POLK PAULDING STEPHENS HALL 77 385 Gainesville DAWSON CHEROKEE BARTOW Rome 85 185 WHITE HABERSHAM LUMPKIN 575 FLOYD RABUN UNION GILMER GORDON CHATTOOGA 85F 585 WHITFIELD MURRAY 59 60 16 516 CHATHAM

4 Table 1 Georgia s Metropolitan Statistical Areas, Population by Race and Hispanic Origin, 2005, July Estimates Percent change 2000 2005 2000-2005 Albany White 78,683 79,024 0.4 Black 77,121 80,943 5.0 American Indian 381 406 6.6 Asian 894 1,514 69.4 Native Hawaiian 16 47 193.8 Multiracial 717 908 26.6 Non Hispanic 155,694 160,472 3.1 Hispanic 2,118 2,370 11.9 Total 157,812 162,842 3.2 Athens-Clarke County White 126,699 134,561 6.2 Black 34,430 33,897-1.5 American Indian 289 422 46.0 Asian 3,813 4,413 15.7 Native Hawaiian 75 73-2.7 Multiracial 1,384 1,719 24.2 Non Hispanic 158,674 164,386 3.6 Hispanic 8,016 10,699 33.5 Total 166,690 175,085 5.0 Atlanta-Sandy Springs-Marietta White 2,841,391 3,129,107 10.1 Black 1,239,820 1,515,508 22.2 American Indian 12,078 14,853 23.0 Asian 141,953 195,924 38.0 Native Hawaiian 1,966 2,905 47.8 Multiracial 44,408 59,420 33.8 Non Hispanic 4,007,381 4,494,141 12.1 Hispanic 274,235 423,576 54.5 Total 4,281,616 4,917,717 14.9 Augusta-Richmond County White 191,385 193,811 1.3 Black 129,706 137,887 6.3 American Indian 894 966 8.1 Asian 6,317 6,770 7.2 Native Hawaiian 363 397 9.4 Multiracial 4,291 4,792 11.7 Non Hispanic 324,474 335,633 3.4 Hispanic 8,482 8,990 6.0 Total 332,956 344,623 3.5 Brunswick White 69,064 73,534 6.5 Black 22,793 23,183 1.7 American Indian 245 280 14.3 Asian 460 574 24.8 Native Hawaiian 18 22 22.2 Multiracial 688 840 22.1 Non Hispanic 90,981 95,215 4.7 Hispanic 2,287 3,218 40.7 Total 93,268 98,433 5.5 Georgia Business and Economic Conditions

5 Table 1 (Continued) Georgia s Metropolitan Statistical Areas, Population by Race and Hispanic Origin, 2005, July Estimates Percent change 2000 2005 2000-2005 Chattanooga White 124,845 134,249 7.5 Black 3,229 4,078 26.3 American Indian 392 391-0.3 Asian 646 940 45.5 Native Hawaiian 3 12 300.0 Multiracial 879 1,073 22.1 Non Hispanic 128,656 138,757 7.9 Hispanic 1,338 1,986 48.4 Total 129,994 140,743 8.3 Columbus White 130,171 127,748-1.9 Black 94,385 97,691 3.5 American Indian 942 944 0.2 Asian 3,276 4,293 31.0 Native Hawaiian 483 593 22.8 Multiracial 3,179 3,704 16.5 Non Hispanic 221,695 224,793 1.4 Hispanic 10,741 10,180-5.2 Total 232,436 234,973 1.1 Dalton White 114,881 124,434 8.3 Black 3,665 4,042 10.3 American Indian 490 588 20.0 Asian 884 1,312 48.4 Native Hawaiian 102 139 36.3 Multiracial 904 1,186 31.2 Non Hispanic 100,156 101,019 0.9 Hispanic 20,770 30,682 47.7 Total 120,926 131,701 8.9 Gainesville White 126,709 149,398 17.9 Black 10,468 11,615 11.0 American Indian 531 618 16.4 Asian 1,847 2,438 32.0 Native Hawaiian 503 602 19.7 Multiracial 865 1,100 27.2 Non Hispanic 113,007 124,411 10.1 Hispanic 27,916 41,360 48.2 Total 140,923 165,771 17.6 Hinesville-Fort Stewart White 38,492 36,499-5.2 Black 29,506 28,281-4.2 American Indian 412 395-4.1 Asian 1,130 1,218 7.8 Native Hawaiian 310 322 3.9 Multiracial 1,781 1,912 7.4 Non Hispanic 65,676 63,491-3.3 Hispanic 5,955 5,136-13.8 Total 71,631 68,627-4.2 (continued)

6 Table 1 (Continued) Georgia s Metropolitan Statistical Areas, Population by Race and Hispanic Origin, 2005, July Estimates Percent change 2000 2005 2000-2005 Macon White 126,191 126,951 0.6 Black 92,579 97,244 5.0 American Indian 426 480 12.7 Asian 2,008 2,582 28.6 Native Hawaiian 14 21 50.0 Multiracial 1,214 1,434 18.1 Non Hispanic 219,520 225,111 2.5 Hispanic 2,912 3,601 23.7 Total 222,432 228,712 2.8 Rome White 76,681 78,799 2.8 Black 12,240 12,878 5.2 American Indian 284 324 14.1 Asian 857 1,257 46.7 Native Hawaiian 153 208 35.9 Multiracial 597 732 22.6 Non Hispanic 85,749 87,647 2.2 Hispanic 5,063 6,551 29.4 Total 90,812 94,198 3.7 Savannah White 182,049 194,663 6.9 Black 103,325 108,879 5.4 American Indian 751 944 25.7 Asian 4,486 5,654 26.0 Native Hawaiian 167 212 26.9 Multiracial 2,845 3,531 24.1 Non Hispanic 287,247 305,942 6.5 Hispanic 6,376 7,941 24.5 Total 293,623 313,883 6.9 Valdosta White 76,554 80,214 4.8 Black 40,306 41,476 2.9 American Indian 449 487 8.5 Asian 1,226 1,364 11.3 Native Hawaiian 49 57 16.3 Multiracial 1,067 1,240 16.2 Non Hispanic 115,825 119,966 3.6 Hispanic 3,826 4,872 27.3 Total 119,651 124,838 4.3 Warner Robins White 79,584 87,291 9.7 Black 27,857 33,894 21.7 American Indian 379 443 16.9 Asian 1,773 2,409 35.9 Native Hawaiian 88 126 43.2 Multiracial 1,575 2,000 27.0 Non Hispanic 107,886 121,475 12.6 Hispanic 3,370 4,688 39.1 Total 111,256 126,163 13.4 Note: MSA totals complied from county data by the Selig Center for Economic Growth, Terry College of Business, The University of Georgia, and include Georgia parts of MSAs only. Source: U.S. Census Bureau, Population Estimates. Georgia Business and Economic Conditions

7 Table 2 Population of Georgia s Metropolitan Statistical Areas, 2000 and 2005, in Order of Population Size, 2005 Percent change MSA 2000 2005 2000-2005 Atlanta-Sandy Springs-Marietta 4,281,616 4,917,717 14.9 Augusta-Richmond County 516,338 520,332 0.8 Georgia part 332,956 344,623 3.5 Chattanooga 488,661 492,126 0.7 Georgia part 129,994 140,743 8.3 Savannah 293,623 313,883 6.9 Columbus 284,453 284,299-0.1 Georgia part 232,436 234,973 1.1 Macon 222,432 228,712 2.8 Athens-Clarke County 166,690 175,085 5.0 Gainesville 140,923 165,771 17.6 Albany 157,812 162,842 3.2 Dalton 120,926 131,701 8.9 Warner Robins 111,256 126,163 13.4 Valdosta 119,651 124,838 4.3 Brunswick 93,268 98,433 5.5 Rome 90,812 94,198 3.7 Hinesville-Fort Stewart 71,631 68,627-4.2 Georgia 8,230,155 9,072,576 10.2 Note: MSA totals compiled from county data by the Selig Center for Economic Growth, Terry College of Business, The University of Georgia. Source: U.S. Bureau of the Census, Population Estimates. continued from page 2 Cherokee and Barrow counties grew by over 28 percent. In the southern half of the state, Lee County (Albany MSA) registered 24.9 percent growth, and Effingham County in the Savannah MSA increased its population by 24.1 percent. In contrast, the population of Liberty County (Hinesville-Fort Stewart MSA), Twiggs County (Macon MSA), Daugherty and Terrell counties (Albany MSA), Richmond County (Augusta MSA), Brooks County (Valdosta MSA) and Columbus s Chattahoochee and Muscogee counties decreased between 2000 and 2005. Although Georgia s population was historically characterized as mostly white, with a large black minority, the ethnic composition of the state s population is undergoing significant changes. Most notably, Georgia and its metropolitan areas has one of the largest and fastest growing Hispanic populations in the country. In addition, the still relatively small Asian population has become the third largest group in Georgia. Albany, Macon, Columbus, Hinesville, and Augusta have the largest black population among Georgia s metropolitan areas, ranging from 49.7 percent of the total population in Albany to 40 percent in Augusta. In the northwest metropolitan counties, the black population comprises less than 3 percent of the total in Chattanooga, 3.1 percent in Dalton, and 7.1 percent in Gainesville. Gainesville and Dalton, however, have the state s largest proportions of Hispanic population (25 percent of the total in Gainesville and 23.3 percent in Dalton). Atlanta, Athens, and Augusta, on the other hand, have the largest concentration of Asians 4 percent in Atlanta, 2.5 percent in Athens, and 2 percent in Augusta. Labor Force and Unemployment tlanta s labor force of 2,572,978 accounts for more A than half of the labor force in Georgia in 2005. Georgia s portion of the Augusta MSA and Savannah follow with the labor forces of 167,605 and 165,732, respectively. Although the Georgia portion of the Augusta MSA has a labor force marginally larger than Savannah s,

8 the Savannah-Hinesville-Fort Stewart Combined Statistical Area reports a labor force of 194,645, second only to Atlanta. Macon s labor force is 110,272 and Columbus s totals 105,998. Both are centers of combined statistical areas. Athens, Gainesville, Chattanooga (Georgia portion), and Albany range from 98,879 (Athens) to 74,814 (Albany), while Dalton, Valdosta, Warner Robins, Brunswick, Rome, and Hinesville-Fort Stewart fall within the 66,756 to 28,913 range. Although the unemployment rate in Georgia jumped from 4.8 percent in 2004 to 5.3 percent annual average in 2005, it averaged 4.8 percent again in the first nine months of 2006. Most of the state s metropolitan areas also saw their unemployment levels climb between 2004 and 2005, and drop in the first nine months of 2006. In Macon and Valdosta, however, unemployment rates rose in 2005, and continued to climb in the first three quarters of 2006. The highest 2005 annual average unemployment rates were reported in Augusta and Hinesville-Fort Stewart (6.2 percent each), Columbus (5.9 percent), Albany (5.8 percent), and Macon (5.7 percent). Although Hinesville-Fort Stewart, Augusta, Macon, and Albany still had the highest unemployment rates in the state (5.9, 5.8, 5.7, and 5.7 percent, respectively), in 2006 the percentages were lower than the 2005 averages. Macon s stayed the same, however. Conversely, the already low unemployment rates in Athens (4.1 percent), Gainesville, and Savannah (4.4 percent each) fell even lower in the first three quarters of 2006 (Athens fell to 3.8 percent, Gainesville to 3.9 percent, and Savannah dropped to 4 percent). Valdosta s 4.1 unemployment rate in 2005 inched up to 4.2 percent in 2006, but the unemployment rates fell to 4.1 percent in Brunswick and in the Georgia portion of the Chattanooga MSA. Employment, Income and Earnings S tatewide, trade and government provide the largest portions of non-farm jobs in Georgia (16.8 percent and 16.2 percent, respectively), and professional and business services and manufacturing follow with 13.4 percent and 11.2 percent, respectively. While the number of jobs in manufacturing fell between 2003 and 2005, the trade and government sectors added jobs. Among the larger industry sectors, information lost the largest percentage of jobs between 2003 and 2005 (5.8 percent). Professional and business services, education and health services, construction, and leisure and hospitality gained between 9 percent (professional and business services) and 6.7 percent (leisure and hospitality). The Multicultural Economy T Georgia Business and Economic Conditions

9 Table 3 Labor Force, Employment, and Unemployment in Georgia s Metropolitan Areas, 2005 Unemployment MSA County Labor Force Employment Number Rate Rank* Albany Baker 1,846 1,749 97 5.3 31 Dougherty 41,972 39,234 2,738 6.5 9 Lee 15,831 15,260 571 3.6 79 Terrell 4,723 4,398 325 6.9 8 Worth 10,442 9,860 582 5.6 26 MSA Total 74,814 70,501 4,313 5.8 4 Athens Clarke 59,063 56,547 2,516 4.3 65 Madison 15,558 14,898 660 4.2 69 Oconee 16,697 16,177 520 3.1 84 Oglethorpe 7,561 7,234 327 4.3 65 MSA Total 98,879 94,856 4,023 4.1 15 Atlanta-Sandy Springs-Marietta Barrow 29,873 28,543 1,330 4.5 53 Bartow 45,329 42,780 2,549 5.6 26 Butts 10,057 9,486 571 5.7 23 Carroll 50,857 48,144 2,713 5.3 31 Cherokee 98,345 94,624 3,721 3.8 77 Clayton 139,948 130,872 9,076 6.5 9 Cobb 379,353 361,484 17,869 4.7 46 Coweta 55,705 53,159 2,546 4.6 51 Dawson 10,343 9,934 409 4.0 74 DeKalb 383,271 359,820 23,451 6.1 16 Douglas 58,911 55,730 3,181 5.4 29 Fayette 53,804 51,474 2,330 4.3 65 Forsyth 73,139 70,814 2,325 3.2 83 Fulton 426,288 399,949 26,339 6.2 14 Gwinnett 400,057 382,228 17,829 4.5 53 Haralson 13,259 12,555 704 5.3 31 Heard 5,137 4,834 303 5.9 18 Henry 87,387 83,209 4,178 4.8 45 Jasper 6,353 6,043 310 4.9 41 Lamar 8,133 7,624 509 6.3 12 Meriwether 10,207 9,436 771 7.6 3 Newton 41,370 39,100 2,270 5.5 28 Paulding 57,344 54,898 2,446 4.3 65 Pickens 14,459 13,905 554 3.8 77 Pike 7,833 7,413 420 5.4 29 Rockdale 39,848 37,587 2,261 5.7 23 Spalding 29,176 27,059 2,117 7.3 4 Walton 37,192 35,513 1,679 4.5 53 MSA Total 2,572,978 2,438,217 134,761 5.2 7 Augusta Burke 10,158 9,374 784 7.7 2 Columbia 55,558 53,098 2,460 4.4 59 McDuffie 10,652 9,900 752 7.1 6 Richmond 91,237 84,793 6,444 7.1 6 MSA Total 167,605 157,165 10,440 6.2 1 (continued)

10 Table 3 (Continued) Labor Force, Employment, and Unemployment in Georgia s Metropolitan Areas, 2005 Unemployment MSA County Labor Force Employment Number Rate Rank* Brunswick Brantley 7,640 7,239 401 5.2 38 Glynn 38,967 37,249 1,718 4.4 59 McIntosh 5,310 5,030 280 5.3 31 MSA Total 51,917 49,518 2,399 4.6 10 Chattanooga Catoosa 34,330 32,943 1,387 4.0 74 Dade 8,440 8,046 394 4.7 46 Walker 32,726 31,118 1,608 4.9 41 MSA Total 75,496 72,107 3,389 4.5 11 Columbus Chattahoochee 2,501 2,227 274 11.0 1 Harris 14,963 14,382 581 3.9 76 Marion 3,404 3,230 174 5.1 39 Muscogee 85,130 79,937 5,193 6.1 16 MSA Total 105,998 99,776 6,222 5.9 3 Dalton Murray 21,158 20,206 952 4.5 53 Whitfield 45,598 43,327 2,271 5.0 40 MSA Total 66,756 63,533 3,223 4.8 8 Gainesville Hall 82,205 78,619 3,586 4.4 59 MSA Total 82,205 78,619 3,586 4.4 13 Hinesville-Fort Stewart Liberty 23,505 21,969 1,536 6.5 9 Long 5,408 5,165 243 4.5 53 MSA Total 28,913 27,134 1,779 6.2 2 Macon Bibb 73,316 69,004 4,312 5.9 18 Crawford 6,297 5,926 371 5.9 18 Jones 13,389 12,755 634 4.7 46 Monroe 12,525 11,908 617 4.9 41 Twiggs 4,745 4,405 340 7.2 5 MSA Total 110,272 103,998 6,274 5.7 5 Rome Floyd 50,155 47,514 2,641 5.3 31 MSA Total 50,155 47,514 2,641 5.3 6 Savannah Effingham 24,598 23,706 892 3.6 79 Bryan 14,873 14,332 541 3.6 79 Chatham 126,261 120,415 5,846 4.6 51 MSA Total 165,732 158,453 7,279 4.4 12 (continued) Georgia Business and Economic Conditions

11 Table 3 (Continued) Labor Force, Employment, and Unemployment in Georgia s Metropolitan Areas, 2005 Unemployment MSA County Labor Force Employment Number Rate Rank* Valdosta Brooks 8,405 8,032 373 4.4 59 Echols 2,253 2,178 75 3.3 82 Lanier 3,807 3,650 157 4.1 71 Lowndes 50,501 48,411 2,090 4.1 71 MSA Total 64,966 62,271 2,695 4.1 14 Warner Robins Houston 62,229 59,306 2,923 4.7 46 MSA Total 62,229 59,306 2,923 4.7 9 Note: MSA totals compiled from county data by the Selig Center for Economic Growth, Terry College of Business, The University of Georgia. *Rank amoung the 78 counties, which are parts of metropolitan areas. MSA total rank refers to the 15 Metropolitan Statistical Areas in Georgia, Georgia Parts only. Source: U.S. Bureau of Labor Statistics, 2006. Metro Atlanta s per capita personal income (PCPI), or the portion of the area s total income averaged by one person, outweighs the state s average. Atlanta s 2004 PCPI of $33,838 exceeds the average PCPI of $31,534 in Georgia s metropolitan portion, towers over the state average of $29,782, and looms even larger over the state s non-metropolitan counties average of $22,497. Among metropolitan areas, Savannah s and Chattanooga s (Georgia portion) PCPIs ($30,316 and $29,912, respectively) also exceed the state s average. Brunswick and Macon register above 95 percent of the state average; Columbus, Gainesville, Warner Robins, Rome, and Augusta (Georgia portion) fall within 94 to 91 percent of the state average, and Dalton follows closely at 88.3 percent. Athens PCPI makes up almost 85 percent of state average, while Albany s, Valdosta s and Hinesville-Fort Stewart s comprise about 80 percent. Hinesville-Fort Stewart is the only MSA in Georgia with per capita personal income below the state non-metropolitan area average of $22, 497. Compared to other MSAs in Georgia, the largest portion of personal income in Atlanta comes from earnings, and a relatively small part comes from government; therefore, the area s income responds quickly to the employment market s ups and downs. Atlanta s earnings are remarkably evenly distributed among several large sectors: a relatively small government sector provides 12 percent of earnings, professional and technical services provide 10.5 percent, and manufacturing, trade, financial services, information, health care, social assistance, and construction each provide between 8.9 percent and 6.4 percent of earnings. Many of these sectors were especially vulnerable during the post-2001 economic slowdown, and some of them, such as manufacturing and information, were still losing jobs between 2004 and 2005. The trend was reversed in 2006 with slight employment gains in manufacturing and information, and stronger gains in Atlanta s other major nonagricultural employment sectors. Albany, Athens, Macon, Rome, and Savannah are characterized by a large portion of earnings provided by the government, manufacturing, and health care sectors, with Rome distinguished among this group by large portions of earnings provided by the manufacturing and health service sectors (27 percent and 18.2 percent, respectively). Rome s PCPI of $ 27,412 ranks ninth among the 15 MSAs, and its unemployment level is the same as the state s average of 5.3 percent. Compared to the other MSAs, Rome derives the second highest portion of its personal income from transfer payments, which consist largely of medical benefits (Medicare), income maintenance payments (such as family assistance and food stamps), general assistance benefits to low income families, continued on page 14

12 Table 4 Per Capita Income in Georgia s Metropolitan Statistical Areas, 2003-2004 with Percent Change and Rankings Percent change 2004 MSA County 2003 PCPI 2004 PCPI from previous year Rank* Albany Baker 19,949 19,216-3.7 67 Dougherty 24,080 25,353 5.3 28 Lee 22,093 22,382 1.3 55 Terrell 20,660 20,635-0.1 63 Worth 22,337 22,479 0.6 53 MSA Total 23,147 23,938 3.4 13 Athens Clarke 23,241 23,800 2.4 42 Madison 23,398 25,224 7.8 30 Oconee 30,148 31,462 4.4 10 Oglethorpe 22,081 23,544 6.6 46 MSA Total 24,307 25,264 3.9 12 Atlanta-Sandy Springs-Marietta Barrow 23,185 23,800 2.7 42 Bartow 25,979 27,017 4.0 23 Butts 21,789 24,683 13.3 33 Carroll 22,701 23,649 4.2 45 Cherokee 29,737 30,590 2.9 11 Clayton 21,507 22,405 4.2 54 Cobb 36,546 37,827 3.5 3 Coweta 27,127 27,894 2.8 19 Dawson 27,271 28,918 6.0 16 DeKalb 34,410 35,837 4.1 4 Douglas 26,048 26,687 2.5 25 Fayette 37,384 38,492 3.0 2 Forsyth 30,936 31,585 2.1 9 Fulton 44,880 46,699 4.1 1 Gwinnett 29,827 30,570 2.5 12 Haralson 21,684 22,761 5.0 50 Heard 19,497 20,433 4.8 64 Henry 26,343 26,907 2.1 24 Jasper 21,910 23,056 5.2 48 Lamar 22,981 24,128 5.0 40 Meriwether 20,298 20,880 2.9 60 Newton 22,279 22,634 1.6 52 Paulding 23,030 23,536 2.2 47 Pickens 27,104 28,504 5.2 17 Pike 23,449 24,234 3.3 39 Rockdale 28,346 29,077 2.6 15 Spalding 23,500 24,679 5.0 34 Walton 24,093 24,906 3.4 32 MSA Total 32,739 33,838 3.4 1 Augusta Burke 19,005 19,584 3.0 66 Columbia 31,732 33,253 4.8 6 McDuffie 24,033 25,184 4.8 31 Richmond 24,239 25,250 4.2 29 MSA Total 25,994 27,128 4.4 10 Georgia Business and Economic Conditions

13 Table 4 (Continued) Per Capita Income in Georgia s Metropolitan Statistical Areas, 2003-2004 with Percent Change and Rankings Percent change 2004 MSA County 2003 PCPI 2004 PCPI from previous year Rank* Brunswick Brantley 19,320 20,637 6.8 62 Glynn 30,210 32,049 6.1 7 McIntosh 19,597 20,725 5.8 61 MSA Total 27,272 28,957 6.2 4 Chattanooga Catoosa 23,424 24,444 4.4 36 Dade 21,470 22,657 5.5 51 Walker 21,983 22,979 4.5 49 MSA Total 28,519 29,912 4.9 3 Columbus Chattahoochee 17,735 18,492 4.3 68 Harris 32,577 33,498 2.8 5 Marion 22,234 23,696 6.6 44 Muscogee 28,656 29,460 2.8 14 MSA Total 27,047 27,909 3.2 6 Dalton Murray 20,436 21,435 4.9 58 Whitfield 27,433 28,501 3.9 18 MSA Total 25,257 26,301 4.1 11 Gainesville Hall 25,029 26,043 4.1 27 MSA Total 25,757 27,528 6.9 7 Hinesville-Fort Stewart Liberty 20,045 21,471 7.1 57 Long 17,079 17,763 4.0 69 MSA Total 19,592 20,904 6.7 15 Macon Bibb 28,914 30,341 4.9 13 Crawford 22,726 24,119 6.1 41 Jones 23,748 24,439 2.9 37 Monroe 25,008 26,350 5.4 26 Twiggs 20,017 20,415 2.0 65 MSA Total 27,170 28,442 4.7 5 Rome Floyd 25,753 27,412 6.4 22 MSA Total 25,753 27,412 6.4 9 Savannah Effingham 23,383 24,648 5.4 35 Bryan 26,323 27,566 4.7 20 Chatham 30,146 31,691 5.1 8 MSA Total 28,870 30,316 5.0 2 (continued)

14 Table 4 (Continued) Per Capita Income in Georgia s Metropolitan Statistical Areas, 2003-2004 with Percent Change and Rankings Percent change 2004 MSA County 2003 PCPI 2004 PCPI from previous year Rank* Valdosta Brooks 21,378 21,648 1.3 56 Echols 16,456 16,487 0.2 70 Lanier 20,428 20,901 2.3 59 Lowndes 23,390 24,315 4.0 38 MSA Total 22,716 23,498 3.4 14 Warner Robins Houston 26,688 27,417 2.7 21 MSA Total 26,688 27,417 2.7 8 Georgia 250,735,472 265,599,116 5.9 Note: MSA totals for Augusta, Chattanooga, and Columbus include areas located in other states. *Rank among the 78 counties, which are parts of metropolitan areas. MSA Total rank refers to the 15 Metropolitan Statistical Areas in Georgia. Source: U.S. Bureau of Economic Analysis, Regional Economic Information System, May 2006. continued from page 11 unemployment insurance benefits, veteran s benefits, and other government and business payments to individuals and nonprofit organizations. The Athens MSA derives 33 percent of its earnings from government employment (its relatively low PCPI ranks twelfth among the metropolitan areas), but the area enjoys consistently low unemployment--4.1 percent average in 2005. As in most metropolitan areas in the state, Athens unemployment rate dropped to 3.8 percent in the first nine months of 2006. Personal income in Athens includes a relatively large portion provided by dividends, interest, and rent, which include payments by retirement plans, and other investment and property income. The portion provided by transfer payments is relatively low. Albany, on the other hand, ranks thirteenth in per capita personal income, has the fourth highest unemployment rate among Georgia s metropolitan areas, and derives a major part of its income (20.7 percent) from transfer payments. In contrast, Savannah s and Macon s PCPIs rank second and fifth, respectively, among Georgia s MSAs. While Savannah retained its high PCPI rank, Macon has slipped one place since 2003. Savannah s unemployment rates consistently are well below the state average, but the 5.7 percent average annual unemployment rate in Macon in 2005 is noticeably above the Georgia average of 5.3 percent. The dividends, interest, and rent portion of personal income in Savannah is the third highest in the state, trailing after Brunswick and Athens. Hinesville and Warner Robins are notable because government employment provides over half of their metropolitan areas earnings 79.2 percent and 60.1 percent, respectively. In addition, Warner Robins derives a relatively large portion (7.7 percent) of its earnings from professional and technical services. While Warner Robins PCPI of $ 27,417 ranks eighth among the MSAs, Hinesville is dead last at $ 20,904, well below the state, metro, and even non-metro area average. Compared to other metropolitan areas in the state, however, Hinesville experienced a steep 2003-2004 PCPI increase (6.7 percent), second only to Gainesville s 6.9 percent. Earnings constitute the second and third highest portions of income in Hinesville and Warner Robins, compared to other metropolitan areas in the state. But, while unemployment in Warner Robins fell below the state average in the first nine months of 2006, that is not true in Hinesville-Fort Stewart, which has the highest unemployment rates among the metropolitan areas. Among Georgia s metropolitan areas, manufacturing provides the largest portion of earnings in Dalton, Rome, and Gainesville (43 percent, 27 percent, and 26.2 percent, respectively). Average weekly wages in manufacturing are relatively Georgia Business and Economic Conditions

15 low in Dalton and Gainesville, however. Conversely, Dalton follows Atlanta with the second highest portion of earnings derived from the well-paid professional and technical services sector, while Gainesville s relatively large government and healthcare sectors each provide 13 percent of the area s earnings. Gainesville and Dalton rank seventh and eleventh, respectively, in PCPI among the state s 15 metropolitan areas. The unemployment rates in Gainesville and Dalton fell well below the state average in 2005, and remained lower than average in the first nine months of 2006. Columbus s large government sector provides 34.7 percent of earnings, and the manufacturing sector provides 12.1 percent. Finance and insurance provides nearly 7 percent of earnings the fourth highest portion among the state s MSAs and the percentage of earnings from the information sector is second in relative size only to Atlanta s. Columbus s professional and technical services sector provides almost 5.1 percent of earnings, also a relatively large portion among metropolitan statistical areas. The area s PCPI ranks sixth in the state, but the 2005 average unemployment level of 5.9 percent is fifth highest among Georgia s MSAs. The 2006 January-to-September average unemployment rate of 5.4 percent ranks in the middle of the group of MSAs. Like Columbus, Augusta s government sector provides a relatively large 27.7 percent portion of earnings. Manufacturing provides nearly 14 percent of earnings, and administrative and waste services, by far the largest among MSAs, totals nearly 12 percent of earnings. Augusta s PCPI ranks tenth among the state s metropolitan areas, and is the lowest among the larger MSAs. Augusta s Columbia County, however, has one of the state s highest per capita personal incomes. Conversely, the MSA had the highest unemployment rate among the state s metropolitan areas in 2005, and one of the four highest in the first nine months of 2006. In Brunswick and Valdosta, a relatively large portion of earnings is derived from government employment (28 percent in Brunswick and 35.7 percent in Valdosta), and the rest of earnings comes from a diverse set of industries, with manufacturing, retail, and health care providing from 12 percent to 8 percent of earnings each, and the smaller sectors supplying the rest. Valdosta s PCPI is next to last in rank among the state s metro areas. A relatively small percentage of income in Valdosta come from earnings and dividends and rent, and a relatively large portion is derived from transfer payments. As is typical for an area in which government is the major employer, Valdosta s unemployment rate stay well below the state average. The unemployment rate did climb from 3.6 percent in 2004 to 4.1 percent in 2005, however, and increased to 4.2 percent between January and September of 2006. Brunswick, the capital of the Golden Isles, derives over 9 percent of earnings from the accommodations and food services sector, by far the highest proportion among metropolitan areas in Georgia. In 2004, the area s construction sector provided over 7 percent of the area s non-farm earnings, the second highest portion among the metropolitan areas in the state. Brunswick has the fourth highest PCPI among Georgia s MSAs, and, compared to other areas, derives the smallest portion of income from earnings. The size of the dividends, interest and rent portion of income, however, is the highest among the metro areas in the state. On the opposite side of the picture, Brunswick s transfer payments provide the fourth largest portion of income compared to other Georgia MSAs. The unemployment rate in the Brunswick MSA is relatively low (4.6 percent average in 2005), and it dropped to 4.1 percent in the first three quarters of 2006). Accordingly, while the PCPI in Brantley and McIntosh counties is below the state and even non-metropolitan area average, per capita income in Glynn County is among the highest in Georgia. To Our Readers This is the final year in which we will publish the printed version of Georgia Business and Economic Conditions. Beginning in 2008, GBEC will be available on our website (www.selig.uga.edu) as an online publication only.