Georgia Tipsheet

Hostess Brands announced Friday it will shutter and liquidate its entire operation after failing to resolve a dispute with one of the companies largest labor unions, resulting in the elimination of 586 jobs here in Georgia.

The bakery giant filed a motion with U.S. Bankruptcy Court this morning seeking permission to fold its operation nationwide, citing a labor strike that had crippled its manufacturing capacity.

The move means the end of the company’s iconic confections, including Twinkies and Ding Dongs. For now, at least: the company is looking to unload all its brands to former competitors.

But the decision to close extends beyond grocery shelves.

A Hostess spokesman said in an email to Tipsheet the company had 586 employees working in 16 facilities, all retail outlets or distribution centers, spread across the state. Once the already-baked goods have been sold, all of those jobs will dry up.

In a prepared statement, the company said a nationwide strike by one of its largest unions, the AFL-CIO-affiliated Bakery, Confectionery, Tobacco Workers and Grain Millers International, has forced the closure.

“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” Hostess CEO Gregory Rayburn said. “Hostess Brands will move to promptly lay off most of its 18,500-member workforce and focus on selling its assets to the highest bidder.”

- James Richardson

Georgia’s unemployment rate in October dipped to 8.7 percent, the lowest level of joblessness in nearly four years, state labor officials said Thursday.

The state added 36,000 new jobs last month, according to new data released by the Georgia Department of Labor, topping month-over-month new growth figures set back in December 2008.

Even as the unemployment rate dropped three-tenths of a percent from the month prior and a full point since October 2011, the state’s unemployment remains well above the national average of 7.9 percent.

But the state’s labor commissioner said the numbers were evidence of the improving confidence of Georgians in the job market,

“Our labor force has grown consistently over the past year, indicating that Georgians are more optimistic about finding a job,” Labor Commissioner Mark Butler said, “and fortunately, we’ve had the job growth necessary to put these people to work.”

- James Richardson

Georgia’s seasonally adjusted jobless rate remained flat in August, stabilizing at 9.2 percent for the second month after increases in the two previous periods, labor department officials said Thursday.

Georgia Labor Commissioner Mark Butler said the new numbers were an encouraging, if still mild, indication of growth.

“Georgia continues to have respectable job growth, which is a good sign,” Butler said in a statement. “While more than one-half of the monthly growth in August came from seasonal education workers workers returning to their jobs, what’s more encouraging is the fact that the August-to-August growth in the last year is the most we’ve had since 2007.”

Year-over-year the state’s unemployment rate had fallen more than a half-point, from 9.9 percent in August 2011, but it still remained above the national average of 8.1 percent.

- James Richardson

Even as U.S. employers expanded payrolls in June, the nation’s unemployment rose to 8.3 percent, according to new numbers out Friday.

The national economy added 163,000 new jobs last month, outstripping the mainstream forecast of 100,000, but the political implications for President Barack Obama were muddled with another mass exodus from the workforce.

Discouraged job-seekers left the workforce entirely in nearly equal measure to those who landed new gigs, measuring 150,000 in total.

Mitt Romney’s southern operation circulated a reax shortly after the numbers were released, hammering the administration for leading the nation into its forty-second consecutive month wherein unemployment has remained above 8 percent.

“President Obama doesn’t have a plan and believes that the private sector is ‘doing fine.’ Obviously, that is not the case,” the Bay Stater said. “We’ve now gone 42 consecutive months with the unemployment rate above eight percent. Middle class Americans deserve better, and I believe America can do better.”

- James Richardson

Georgia’s unemployment rate saw its first increase in nearly a year, labor department officials confirmed Thursday.

Though the unemployment rate had been reliably trending down from its 10-point high 11 months earlier, state number crunches clocked June’s seasonally adjusted unemployment at 9 percent, marking a one-tenth point hike from May.

Georgia Labor Commissioner Mark Butler explained last month’s job loss was an annual occurrence, though less severe than anticipated.

“The unemployment rate traditionally inches up in June because new graduates and people hunting summer jobs enter the job market at the same time private and public schools are laying off for the summer,” Butler said in a statement. “The June job loss is a lot less than we anticipated, based on recent trends, and despite the overall loss, we gained 1,500 manufacturing jobs and 900 in construction.”

But even as the rate ticked up, it had fallen nearly a full point year-over-year. In June 2011, the state’s unemployment registered at 9.9 percent.

Statewide initial unemployment insurance claims were up 4.5 percent month-over-month, a 4.5 percent increase, but had fallen north of 17 points year-over-year.

Butler said there were “encouraging” signs in the report, though Georgia’s unemployment remains well above the national average of 8.2 percent.

- James Richardson

A new government policy aimed at reducing welfare fraud is off without a hitch, disqualifying drug users wholesale from unemployment insurance rolls.

The Georgia Department of Labor began asking employers in March to disclose the pre-employment drug screenings of those persons collecting unemployment benefits. Those who failed risked their jobless benefits, though state officials independently verify the claims.

Labor Commissioner Mark Butler told the Associated Press on Friday that the initiative has received no complaints from employers during its now-three-month run.

- James Richardson

Georgia’s recovering economy has borne a little good news for the thrush of teens eyeing seasonal employment this summer.

A new analysis by the Employment Policies Institute of national labor statistics and Census data found the Peach State’s teen unemployment had dipped nearly ten points year-over-year for the month of April.

At 27.1% teen unemployment, Georgia remains within the top 15 most hostile work environments for teen job seekers.

But even at number 14 on the list, labor experts say, the state has made headway on its teen employment crisis.

Georgia has managed to shed the ignominy it earned in January 2011 for ranking as the state with the single-highest teen unemployment, at 37.3%, according to an earlier study by the same group. That dishonor is now held by the District of Columbia, who the report found has 51.7% teen unemployment.

Statewide unemployment figures have likewise dipped. The most recent figures by the Georgia Department of Labor showed the state’s unemployment rate had fallen to a three-year low.

- James Richardson

New figures out today by the Georgia Department of Labor revealed the Peach State’s unemployment had dipped a tenth of a point last month, down to 8.9 percent. It’s the first time in more than three years the measure had fallen below 9 points.

Per the Atlanta Business Chronicle:

“We now have the lowest unemployment rate, the fewest unemployed workers, and the most jobs in Georgia in more than three years,” said State Labor Commissioner Mark Butler, in a statement. “Our job market continues to improve at a modest and steady rate.”

There were 423,495 unemployed workers in Georgia in April — the fewest since January 2009, GDOL said.

The new numbers mark the ninth consecutive month in which the unemployment rate has fallen.

- James Richardson