Total employment in the Southeast in the 12 months ending in December 2001 dropped by 162,000 jobs, or 0.06 percent, to approximately 25 million. Only Florida and Tennessee recorded increases, each at less than 1 percent. South Carolina recorded the biggest decline, 2.1 percent, as declines in the textile and apparel industries continued to dampen the economy. Overall the unemployment rate in the region as of the end of 2001 was 5.6 percent, compared with 3.9 percent in December 2000. The lowest unemployment rate was reported in Georgia at 4.5 percent, and the highest in Mississippi at 6.7 percent.

Nonagricultural employment in Georgia during 2001 dropped 2.2 percent, a loss of 88,400 jobs. This was the first yearly decline for Georgia in 10 years. Almost every sector experienced a loss, with construction, manufacturing, and transportation-utilities each losing about 5 percent. Much of the loss occurred in the Atlanta metropolitan area, where employment fell by 60,000 jobs for the year. The area's transportation and convention businesses have suffered because of fallout from the events of September 11, and high technology industries continued to layoff workers. The outlook is for a modest recovery to begin sometime later in 2002, possibly during the third quarter.

Total employment in Mississippi in December 2001 declined 1.4 percent from December 2000. While almost all nonagricultural sectors registered declines, manufacturing employment (down 6.7 percent) suffered the most. In 1994, one in four workers in the State was employed in manufacturing; by the end of 2001, the ratio was less than one in five.

Through November 2001, single-family permit activity had increased over the same time period in 2000 in every State except Kentucky, where the decline was only a few units. Overall, for the eight States, there was a 6.1-percent increase. An 11-percent increase for Florida was the biggest for the region.

Continued lower interest rates offset the effects of the weaker economy on the sales housing market in 2001 throughout much of the Southeast. The NAR reported the annual rate of sales at a total of 1,352,100 homes, a 4.4-percent increase over 2000. The increase in existing home sales in Georgia was one of the highest in the Nation in 2001, totaling more than 161,500 homes.

The Atlanta metropolitan area continued to be the Nation's most active new home market as well, with single-family permits totaling 48,428 homes, a 3.5-percent increase. Despite the area's recent job losses, the sales market continued a strong performance in the third quarter, with sales up more than 10 percent over the third quarter of 2000. Sales of single-family homes priced below $250,000 remained strong, while sales of more expensive homes slowed. Sales on Atlanta's south side increased sharply in the third quarter. The lower new home prices contributed to the south side's strong performance. The median sales price for 2001 in the Atlanta metropolitan area was $139,100, a 6-percent gain over 2000. In Florida, existing home sales for the year totaled 511,200, 1.1 percent above 2000.

Multiple listing service data available from the North Carolina Association of REALTORS^® and data from the NAR indicate a modest 2.1-percent increase in home sales for 2001 compared with the previous year. Sales increased in 10 of 16 markets surveyed. The Greensboro/Winston-Salem/High Point area recorded a 4.5-percent decline in sales activity for the year. Multifamily permit activity in the region declined by 7.8 percent through November 2001 compared with the same time period in 2000. The only increase was in North Carolina—3.8 percent. While permit activity declined by 25 percent in Charlotte, it in-creased by 55 percent in Greensboro and remained about even in Raleigh.

With the increased production in the Greensboro/ Winston-Salem/High Point area, the rental market softened slightly in 2001. Data from Carolinas Real Data indicate that the apartment vacancy rate increased from 6.7 percent in September 2000 to 8.3 percent in September 2001. Given the size of the current pipeline and recent rates of absorption, the overall vacancy rate for the area is expected to increase during the next 12 months to approximately 9 percent, according to analysts at Carolinas Real Data.

Occupancy has declined in Atlanta's rental market as a large number of new units have been added to the market during a period of declining demand. Recent surveys show occupancy slipping by as much as 3 percentage points in the past year to a range of 91 to 94 percent. Some submarkets, particularly those with significant recent increases in new units, are recording occupancy rates in the mid 80s. Some developments are experiencing slower rent-up periods, and occupancy in existing developments has dropped in submarkets where large numbers of new units have entered the market. As a result, substantial concessions (including as much as 2 months' free rent on a 1-year lease) are becoming more common in both new and existing developments. A few developments have advertised reduced rents in response to the more competitive conditions. Given the current softening, the large pipeline of apartments under construction is a concern. MPF Research reported 17,800 apartment units under construction in the metropolitan area at the end of the third quarter.

In Miami, multifamily permit activity in 2001 totaled 7,168 units, an increase of 17 percent from 2000's volume, but only 2 percent ahead of activity in 1999. In Fort Lauderdale, multifamily permit activity also remained strong during the year. Per-mits were issued for 2,492 units, down less than 3 percent from 2000. This is the fourth consecutive year of declining production since 1997, when permits were issued for 5,487 units, resulting in a significant oversupply.

Spotlight on Jackson, Mississippi

The Jackson metropolitan area had a total population of 440,801 at the time of the 2000 census, an increase of 12 percent, or 45,405 persons, since 1990. The area's two suburban counties, Madison and Rankin, accounted for all population growth during the period, as Hinds County and the city of Jackson both lost population during the decade.

Nonagricultural employment in the metropolitan area increased at an average annual rate of 2 percent between 1990 and 2000. However, as in other areas of the Nation, the local economy has slowed with the recession. Preliminary data indicate that nonagricultural employment was relatively static in 2001, declining 0.3 percent from 2000 to 229,900 jobs.

Because of its broad economic base, the Jackson area's economy has been less affected by the current recession than have other areas of the State. In addition to being the State capital, Jackson is a regional medical, education, financial, and trade center. Federal, State, and local governments employ approximately 22 percent of the workforce. Manu-facturing employment has been declining over the past several years but still comprises 10 percent of the area's establishment-based employment.

The area has begun to feel the positive effects of the largest economic stimulus ever to hit the State—the construction of a $930 million Nissan assembly plant in Madison County. The facility is expected to employ more than 4,000 persons after operations begin in summer 2003. The assembly plant is also expected to generate thousands of additional jobs as automotive parts suppliers and other support operations build facilities in the Jackson metropolitan area and in surrounding counties.

If the recession ends during 2002, as some have predicted, employment levels in the metropolitan area are likely to increase dramatically during 2003 as employees displaced during the recession re-enter the workplace at the same time that new jobs are filled at Nissan and its suppliers.

In 2001, permits were issued for a total of 2,299 single-family homes in the metropolitan area, an increase of 15 percent compared with 2000. The area's homeownership rate increased from 65.7 percent in 1990 to 68.5 percent in 2000, with the rapidly growing Madison and Rankin Counties accounting for almost 90 percent of the increase in owner households. Construction of new sales housing, particularly in Madison County, is expected to increase significantly as Nissan's summer 2003 opening date approaches. The April 2002 opening of the 304,000-square-foot open-air mall, Dogwood Festival Market, is expected to spur additional commercial and residential development in the northwest area of Rankin County.

CB Richard Ellis, Memphis, conducted the most recent survey of the Jackson apartment market during the fourth quarter 2001. Overall occupancy at that time was 92 percent, up from 91 percent a year earlier. The average rent for apartment units as of the fourth quarter of 2001 was $561, an increase of 1.3 percent in 12 months. Apartment construction activity has resumed, however, and will accelerate in coming months as developers seek to serve anticipated renter need from new employees at Nissan and other new firms.