Job openings in Georgia and South Carolina decreased in May from April. In Georgia, job openings fell 16 percent to 367,000. The fall in South Carolina was much less at just half of one percent.
There were 179,000 job openings in South Carolina in May. Job openings in Georgia are at their lowest since May 2021. However, these numbers still show there are 2.3 job openings for every unemployed worker in Georgia and South Carolina.
Job openings are one variable included in the Augusta Leading Economic Index (LEI). Other variables that have not fared well over the last few months are the Dow Jones Industrial Average and real deposits in local banks. However, initial claims for unemployment insurance are at a seasonally adjusted all-time low (data goes back through 2003). Residential building permits are robust with more than 2,000 being issued so far in 2022.
The Augusta LEI contains variables that change before changes in the real business cycle. For example, job openings change before actual employment. Building permits change before actual construction.
The improvements in permits and unemployment claims outweigh the losses in the other variables to leave the Augusta LEI up 0.3 percent in May from April and 8.8 percent higher than May 2021.
Although changes in the Augusta LEI are still positive, the rate of increase is declining. A year ago, the index was increasing by double digits on an annual basis. The mixed information in the current data, with two variables indicating a bright future and three indicating a potential downturn ahead, aligns with the national trends I mentioned last week.
Gross Domestic Product is falling, but the national labor market remains strong, adding more than half a million jobs in July.
Overall, the economic data indicate uncertainty about the economic outlook over the next 6 to 12 months.
