News Summary

The Savannah metropolitan area is experiencing mixed economic conditions as early 2025 unfolds. While there was notable employment growth by the end of 2024, recent data shows unemployment rates are on the rise. The region’s unemployment rate dropped to 2.9% in late 2024, but it has increased to 3.6% by March 2025. Despite challenges in some sectors, areas like leisure and hospitality have shown growth, indicating a complex recovery landscape for Savannah’s economy.

Savannah, Georgia – The Savannah metropolitan area is currently showing mixed signals in its economy as early 2025 progresses. Recent updates from the economic monitor by Georgia Southern University’s Center for Business Analytics and Economic Research reveal a notable increase in business and employment activity by the end of 2024. However, despite these advances, the area is facing a rise in unemployment rates in the first quarter of 2025.

In the fourth quarter of 2024, the region’s unemployment rate was reported at 2.9%, reflecting a decline from 3.4% in the previous quarter. Additionally, there was a 12% decrease in monthly initial unemployment insurance claims from Quarter 3 to Quarter 4 of 2024. This positive trend would later reverse as the Georgia Department of Labor corroborated a steady increase in unemployment, reaching 3.6% by March 2025.

Despite these challenges, employment numbers demonstrated a rebound towards the end of 2024. The Savannah metro region employed 208,100 individuals, adding 100 jobs during the last quarter of the year. Growth was particularly significant in the service sector, specifically in leisure and hospitality, which saw an increase of approximately 800 workers, raising total sector employment to 27,900. The logistics sector also flourished, with an increase of 600 workers, culminating in a total of 19,800 employees in that industry.

These gains were accompanied by a 0.5% increase in the metro area business index, equating to a 2.1% annualized rate in Q4 2024. The tourism, retail, and port activity sectors experienced robust recovery, indicated by a 16% increase in hotel and motel tax, a 10.3% rise in boardings at Savannah/Hilton Head Airport, a 5% growth in retail sales, and a 4.2% uptick in port activity during the same period.

Nevertheless, not all sectors shared in the prosperity. The business and professional services sector faced difficulties, losing 200 workers due to declines in temporary employment agencies. Additionally, wholesale trade fell by 400 positions, counteracting some of the earlier gains. The construction industry remained stagnant, reporting a total of 10,200 jobs after a loss of 100 workers. Goods-producing sectors stayed steady at 33,100 jobs, with manufacturing accounting for 22,900 of those roles.

Various factors impacting the local economy include recent hiring by Hyundai Motor Group Metaplant America, which confirmed the addition of approximately 60 employees after its grand opening on March 26, 2025, bringing its total to 1,291 Meta Pros. However, overall expectations for the Savannah metro economy indicate that potential declines may linger into early 2025, further complicated by a federal GDP decline of 0.3%.

Supporting nearly 600,000 jobs, Georgia’s deepwater ports are a significant driver of economic activity in the state, contributing more than $10 billion in federal taxes and $2.8 billion in state taxes. Port-related sales and GDP have increased by 22% since fiscal year 2021, showcasing the growing impact of Georgia’s ports on the local and state economy. The top commodities exported from the state include food, forest products, and automotive cargo.

The Savannah Area Chamber of Commerce reported that there are 6,774 businesses in the statistical area, employing between five and 500 individuals, which constitutes 78% of the local workforce. Critical workforce initiatives are currently in place to address challenges faced by Hyundai’s operations, focusing on areas such as housing, transportation, and childcare needs.

As of now, the average salary for positions available in Hyundai is estimated to be $58,105 plus benefits, with many competitive roles in production and engineering. While local hiring efforts are ongoing, it is expected that job openings at Hyundai and its related suppliers will not be filled immediately, indicating a prioritization of local talent in staffing the burgeoning industry.

Overall, while the Savannah metro area sees ongoing job growth and economic recovery, recent unemployment trends present challenges that will need to be addressed as 2025 unfolds.