University students are likely insulated from the worst effects of the recession when they are in Athens.

“College towns have a bit of insulation,” said Tom Jackson, UGA vice president of public affairs. “They’re slower into the recession and slower out of it.”

The unemployment rate for Athens-Clarke County as of February 2009 is 7.3 percent, Department of Labor statistics show. Georgia’s seasonally adjusted unemployment rate is 9.3 percent, and the national unemployment rate is 8.1 percent.

“I wouldn’t call it recession-proof, but I do think there will be less of an impact on Athens and other college towns,” said Robert Sumichrast, dean of Terry College.

Athens Mayor Heidi Davison said, “Typically university towns are not affected as much by the ups and downs of the economy because they have a stable employer. They’re shielded from a lot of the vagaries of the economy as it shifts,” she said in a phone message.

Additionally, Sumichrast said, “you have students coming into town who have certain things they have to buy.”

And the steady flow of student consumers benefits more than just the stores and restaurants downtown.

“Purchases made by students and employees . help keep tax revenue up and help create jobs,” Sumichrast said.

The Athens economy began developing when the University was founded in 1801, and the school remains crucial to Athens today.

“Obviously [the University] is the dominant economic force in northeast Georgia,” Jackson said. “It has a tremendous impact on the economy.”

But it may not be enough.

“Although we may be doing better than other communities are because we have a university, this particular economic downturn has had some effects on Athens and the local community in terms of local businesses and certainly the local government budget,” Davison said. “Although there is some buffering, it doesn’t keep us completely shielded from the economy.”

This fact is reinforced by statistics. Between January and February 2009, Athens lost 800 jobs, according to the Department of Labor.

Sumichrast said he doubts Athens can avoid the recession entirely.

“There is a significant shortfall in state funding, and revenue for the University of Georgia is lowered,” he said. “I don’t think there’s enough stability for us to avoid recession.”

At the end of January, the University had 153 vacant faculty positions and 173 vacant staff positions, according to University President Michael Adams’ February testimony to the House Higher Education Appropriations Subcommittee.

And the University has eliminated positions for 47 graduate assistants and 52 student workers.

“There is no hiring freeze, but hiring has been greatly slowed,” Jackson said. “That’s a significant slowdown to create that number of openings . but through prudential management we’ve avoided layoffs.”

When Athens begins to feel the effects of the recession, “you’ll see less spending available in local shops and restaurants,” Sumichrast said.

“I think small businesses are going to be very affected.”

“We will see a recession in Athens, but the good news is, I don’t think it will be as bad as you’ll see in other parts of Georgia. The bad news is that the upturn in jobs related to government and the University of Georgia will probably lag behind.”