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Atlanta is last in per capita income growth

2:16 pm July 17, 2009, by Henry Unger

We’re No. 25. Who would’ve thunk it?

A new study done for the Metro Atlanta Chamber reveals that Atlanta’s per capita income growth was 2.6 percent annually from 1998 to 2007 — last among the 25 largest metro areas.

The study conducted by Bain & Co., put Atlanta behind Detroit, which had annual income growth of 2.9 percent.

“We have not created enough new jobs, and the jobs we’ve created are fairly low paid,” Alan Colberg of Bain’s Atlanta office told AJC reporter Dan Chapman.

I know we’ve lost some high-paying airline pilot jobs, but I never would have predicted last place for Atlanta.

San Diego, which ranked first, had annual income growth of 5.2 percent — double Atlanta’s. Rounding out the top five were San Francisco, Houston, Baltimore and Boston.

Could it be that too much of our growth has come from lower-paying, service sector jobs connected with shopping centers, fast food joints and hotels? What do you think?

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9 comments Add your comment

JP

July 17th, 2009
5:06 pm

What were the population growth for these cities and time span. Could it be our growth brought more supply to the labor market, lowering price compared to the other cities?

Martin

July 17th, 2009
8:37 pm

As I keep telling my friends, “Atlanta is the next Detroit”. Now I have the statistics to back me up.

Shadow 7071

July 17th, 2009
8:50 pm

Ask the question – What Does ATL produce? Answer: Nothing (or at least very, very little).

Al

July 18th, 2009
9:10 am

I think JP hit the nail on the head. Atlanta is the 2nd fastest growing metro (Dallas is 1) since 2000. Unfortunately, large population growth combined with negative employment growth produces stats as the one highlighted in this post. But, contrary to Martin’s comment, every economist I have spoke with/listened to paints a very bright future for the Atlanta metro. Plus, everyone I know in Charlotte says they are the next Detroit.

The Dogfighter Returns

July 18th, 2009
9:25 am

This is a meaningless statistic, which is typical of a lot of things in this country. Being at the bottom is actually good from an employer’s and business perspective becasue it is an indication that wages are not skyrocketing and inflation is under control.

Of course being at the bottom and being associated with Detroit sends the sheep into a frenzy.

Frankly

July 18th, 2009
11:21 am

Al I largely agree with your post. However we have to note the fact that we have not attracted the number of high paying jobs this decade as in the past and examine the reasons for it. For one thing, we had just barely recovered the high-wage jobs lost during the 2001 recession before this recession started.

I think it does point to the fact that the way we have developed is not necessarily conducive to attracting and retaining kind of businesses and residents we want to attract. We have an increasingly negative image related to bad traffic, low water supply and sprawl. We need to transition from always pursuing a bigger Atlanta to pursuing a BETTER Atlanta.

@Edw3rd

July 18th, 2009
11:22 am

When the ATL leadership embraces a convention, tourism and retail strategy (Brand Atlanta: Where Everyday is an Opening Day) instead of supporting entrepreneurs and growth industries – what else do you expect?

FranklySpeaking

July 19th, 2009
4:37 pm

@Edw3rd makes an excellent comment about Atlantas image and economic structure. A business built on tourism and not producing any exportable product will suffer as the economy stays challenged. The city of Atlanta leadership needs to stop attempting to re-create “The ATL” and make it a smaller NYC or LA and stay unique. Lower paying service jobs and out of work managers do not a recovery make. WalMart cannot employ and maintain “mmidle-class” lifestyle. Politicans want us to believe they have the answers – wait on recovery while neighborhoods resemble shost towns and small businesses are closing. People wake up and spread the message the revolution will not be televised in HD nor will higher paying jobs return quickly.

The Depressed economy is here to stay for a while- and Atlanta tourism will not produce any new jobs. Brand Atlanta- Where we have delayed Opening on the account of the recession.

Supply of labor increase - nonsense

July 19th, 2009
8:30 pm

Atlanta’s population growth rate has been similar to Houston which is in the TOP 5 not near last. Sorry, but the increase in population watering down income growth just doesn’t make sense.