News Summary

Georgia has reported a significant decline in initial unemployment claims, with 4,646 new claims filed. This decrease comes as the state grapples with challenges in its unemployment processing system. While the overall economic outlook for Georgia remains positive, the Georgia Department of Labor continues to face issues in responding to claims and improving service. Despite a stable unemployment rate, frustrations persist as many individuals rely on personal savings while waiting for benefits.

Atlanta, Georgia – Initial unemployment claims in Georgia have seen a significant decrease, with 4,646 new jobless claims filed for the week ending July 26. This marks a reduction compared to the previous week, which reported 6,780 claims, indicating a positive trend in the state’s labor market despite ongoing challenges within the Georgia Department of Labor (GDOL).

In contrast to Georgia’s drop in claims, the U.S. Department of Labor reported an increase in national unemployment claims, reaching 218,000, which is up by 1,000 claims from the week prior. Areas such as Vermont faced a sharp rise in claims, seeing the largest percentage increase at 110.0%, while Kentucky experienced the most considerable percentage decrease, with claims falling by 78.8%.

Although Georgia’s claims have declined, GDOL still struggles with processing rates for unemployment insurance claims. The processing rate was 12 percentage points below the federal standard in the first quarter of 2025, improving to nearly 9 percentage points below the federal standard by the second quarter. The department’s fiscal year 2025 budget was set at $8.5 million, which is almost $10 million less than originally requested. Over the past five years, GDOL’s workforce has shrunk by approximately 13%, leaving 871 active employees to serve 35 offices across the state.

During the early months of the COVID-19 pandemic, GDOL faced severe challenges, managing to answer only 4% of calls, leaving 78% of callers unable to connect with representatives due to limited system capacity. As of last week, the department received a total of 14,251 calls across all service lines, with less than a third connecting to a live agent. To address these issues, GDOL has received over $14 million in federal funding for fiscal year 2024 aimed at modernizing its unemployment insurance system to improve user-friendliness.

Despite these challenges, the overall economic outlook for Georgia appears positive. The state’s unemployment rate was reported at 3.5% as of June, unchanged from May, and trailing the national average of 4.1%. Georgia has reached a historic milestone, surpassing 5 million jobs for the first time. Job growth has been especially noteworthy in sectors such as health care and social assistance, which recorded an increase of 24,300 positions; local government, which added 7,800 jobs; and arts and entertainment, which saw a gain of 5,100 jobs.

On a broader scale, Georgia has faced fluctuations in unemployment claims. Initially filed claims increased slightly in June by 522, totaling 19,657. However, this was down by 2,210 claims from the previous year. Comparatively, the unemployment rate was slightly higher than the previous year’s figure of 2.7%, with Gainesville reporting an unemployment rate of 2.8% as of January. Notably, the labor force in Gainesville grew by 245, reaching a total of 108,872, though the area experienced a decline of 1,700 jobs from December to January.

In response to ongoing challenges, GDOL has adopted a new customer relationship management system along with a virtual agent designed to better assist callers. Despite these improvements, many individuals continue to express frustration with GDOL’s response times. Some claim they have had to rely on personal savings while waiting for unemployment benefits, underscoring the ongoing need for better service and support for Georgia’s workforce.