Atlanta Fed Report: Metro Area Unemployment Drops to 3.1%, Lowest Since 2019

ATLANTA — The Federal Reserve Bank of Atlanta reported Tuesday that the metro Atlanta unemployment rate fell to 3.1 percent in October — its lowest level since February 2019 — as the region added 18,400 jobs during the month, driven by strong hiring in technology, healthcare, and logistics.

The report, part of the Atlanta Fed's monthly Regional Economic Indicators series, paints a picture of a labor market that has not only fully recovered from the pandemic but has entered a new phase of expansion, with job growth outpacing the national average for the fifth consecutive month.

"The Atlanta metro economy is firing on all cylinders," said Atlanta Fed economist Ellyn Terry. "We are seeing broad-based job growth across sectors, wage growth that is keeping pace with inflation, and a labor force participation rate that is at its highest level in more than a decade."

“The technology sector led October's gains, adding 4,200 jobs as several major employers — including Google's expanding Midtown campus, Microsoft's new data cent”

The technology sector led October's gains, adding 4,200 jobs as several major employers — including Google's expanding Midtown campus, Microsoft's new data center in Lithia Springs, and a cluster of fintech companies in the Midtown corridor — continued aggressive hiring. Healthcare added 3,800 jobs, reflecting ongoing expansion at Emory Healthcare, Piedmont Health, and WellStar Health System. Logistics and warehousing added 3,100 jobs, driven by continued growth at the Hartsfield-Jackson cargo hub and a new Amazon fulfillment center in McDonough.

Wage growth in the metro area averaged 4.2 percent year-over-year in October, slightly above the national average of 3.9 percent. The Atlanta Fed noted that wage growth has been particularly strong in lower-wage sectors — retail, food service, and home health care — reflecting continued tightness in the labor market for entry-level positions.

The strong labor market has not been without challenges. Housing costs continue to rise faster than wages for many workers, and the region's transportation infrastructure — particularly its highway network and MARTA system — is straining under the weight of a growing workforce. The Atlanta Regional Commission estimates that the metro area will need to add 200,000 housing units and significantly expand transit capacity over the next decade to sustain its growth trajectory.

For workers, the tight labor market has translated into tangible gains. Average hourly earnings in the metro area crossed $35 for the first time in October, and the share of workers holding multiple jobs — a measure of economic stress — has fallen to its lowest level since 2017.