Regional Update (July-September 1997)

Index The State of the States Views from the Region Southeastern Manufacturing Survey Southeastern Economic Indicators

Cover Story - Georgia Landowners Face Decision on Conservation Reserve Program Acreage

Economic Shifts Cause Florida's Major Cities to Interact Differently

The State of the States
T he following is a brief overview of recent economic events and trends in the six states of the Sixth Federal Reserve District.

  • Edward, the first hurricane to make land on the Alabama coast in years, just missed the city of Mobile, averting huge potential losses.
  • Strength in construction in the state continues to provide new jobs, which are partially offset by job losses in manufacturing, mostly in apparel.
  • Florida remains the strongest state in the District, with year-over-year employment growth approaching 4 percent.
  • While tourism accounts for much of the strength in construction and services employment, the relatively small manufacturing sector is now growing at about the national rate.
  • The post-Olympic slowdown is over, with only the construction industry showing no growth in employment from year-ago levels. This information is not surprising, however, considering the pre-Olympic construction push in early summer of last year.
  • Manufacturing employment is growing at about the same rate as in the nation, being elevated by a very strong showing in the Atlanta metro area.
  • Oil extraction and related industries continue to provide substantial high-wage job growth.
  • Manufacturing is also growing above national rates, driven directly by petroleum products and a strong shipbuilding industry.
  • The state continues to linger in the slowdown following the introduction of casinos.
  • In addition to weak construction and public utility sectors, manufacturing remains a notable drag on employment.
  • Employment growth continues to lag both the District and national levels, but with the exception of weakness in the manufacturing sector, growth is fairly well balanced.
  • The most severe labor shortages have eased somewhat, but tightness persists, suggesting that much of the slowdown in employment growth may reflect supply constraints.

Compiled by the regional section of the research department of the Federal Reserve Bank of Atlanta.