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Savannah Sees Marginal Rise in Unemployment Rate

Savannah showcases a diverse workforce in various sectors.

News Summary

The Savannah Metropolitan Statistical Area has experienced a rise in the unemployment rate to 2.9%. Despite a slight year-over-year improvement, the labor force and employment figures have declined. Labor Commissioner notes the resilience of local workforce amidst economic fluctuations. Initial unemployment claims have decreased, indicating some positive movement in the job market. While certain sectors, like leisure and hospitality, show growth, challenges still persist in industries such as construction.

Savannah – The unemployment rate in the Savannah Metropolitan Statistical Area rose to 2.9% in May 2025, an increase of three-tenths of a percent from April 2025. This is a slight improvement compared to the 3.1% unemployment rate recorded in May 2024, indicating fluctuating employment conditions over the past year.

The Georgia Department of Labor reported that the total labor force in Savannah decreased by 269, bringing the total to 207,714 at the end of May 2025. Compared to a year earlier, the labor force has seen a significant decline, down by 2,857 since May 2024. This trend has implications for the overall economic climate within the region.

Only 201,679 residents were employed in Savannah in May, which represents a decrease of 964 from the previous month and a fall of 2,366 compared to the same month last year. Despite this, the total number of jobs in Savannah rose by 400 from April 2025, totaling 207,100. However, this still reflects a decline of 1,400 jobs since May 2024.

Initial unemployment claims also fell in May, totaling 491, which is a decrease of 67 from April 2025 and 72 fewer claims than reported in May 2024.

Even with the current struggle, Georgia Labor Commissioner Bárbara Rivera Holmes noted the resilience and adaptability of the state’s workforce, maintaining Georgia’s reputation as the top state for business. Supportive economic indicators were found in previous reports from Georgia Southern University, which highlighted business and employment growth late last year.

The Georgia Southern University Economic Monitor pointed to a 12% decrease in initial unemployment claims between Q3 and Q4 of 2024, a positive sign for the region’s labor market. Savannah’s unemployment rate had dropped to 2.9% in Q4 2024 from 3.4% in Q3 2024, backed by recovery in fields such as tourism, port activities, and retail sales.

In late 2024, significant growth was noted in the leisure and hospitality sector, with 800 new jobs added. The logistics and transportation sectors also contributed positively, adding 600 jobs. Conversely, the business and professional services sector experienced a loss of 200 jobs, predominantly attributed to trends in temporary employment agencies.

While the Savannah area showed resilience in some sectors, the construction industry faced challenges, reporting a loss of 100 workers as employment totaled 10,200 in January 2025. However, manufacturing employment remained stable at 22,900 workers, partially due to the integration of new suppliers from the Hyundai supply chain.

Additional statistics from the economic monitor pointed to a 16% increase in hotel and motel taxes, alongside a 10.3% rise in airport boardings, both indicating encouraging trends in the service industry. Nonetheless, the business forecasting index did reveal potential weaknesses driven by shorter work weeks, contrasting with observed wage increases in the private sector.

Looking ahead, the fourth-quarter declines in economic activity are projected to continue into early 2025, sparking concern among local economic analysts. These insights arise from continuous monitoring of regional economic activity through the Georgia Southern University Economic Monitor, which covers Bryan, Chatham, and Effingham counties.