The Savannah metro economy’s growth continued, but slowed modestly during the second quarter of 2024, as reported in Georgia Southern University’s recently released Q2 2024 Economic Monitor.
“The economy primarily was buoyed by overall employment growth and port activity,” stated Michael Toma, Ph.D., Georgia Southern’s Fuller E. Callaway Professor of Economics. “Overall, the upcoming six to nine months are expected to be a period of sustainable growth generally consistent with longer- term trends. The economy has been generating jobs at a pace of 2% for approximately 12 months, which is expected to continue into 2025.”
Employment Trends
Metro Savannah employers added 800 workers during the quarter, raising total employment to 207,200. In the service sector, general increases in employment offset a mild pullback in business and professional services, as well as in leisure and hospitality. Education and health added workers to remain the region’s top job-providing sector with 29,100 workers.
Activity in the tourism sector moderated during the second quarter. Although airport boardings and auto rentals increased modestly, inflation-adjusted room rentals revenue dipped by several percentage points. The leisure and hospitality sector provides work for 27,300 employees.
Even as port activity increased and trends of expansion continued the regional logistics sector shed about 100 jobs during the quarter. The logistics industry employs 18,800, roughly equaling the employment level during the previous 18 months. As noted above, port activity, as measured by the number of standardized containers handled in the Georgia Ports Authority facilities, jumped 5.1% in the second quarter and posted a 16.3% over-the-year gain.
The goods-producing side of the economy added about 200 persons, rising to 33,000 workers while manufacturing employment increased by 100 jobs to total 22,500 workers. Construction employment added 100 workers in a climb to a total of 10,500.
Private sector wages, after adjusting for inflation, increased to $25.77 from $25.65 per hour during the quarter, resulting in a gain of 2.1% on an over-the-year basis. This is the second consecutive quarterly gain after a period of some weakness during the previous 12 months. The overall decline in the national inflation rate is welcomed news for workers in the region as income growth outpaced inflation in the past six months. Other good news included a modest increase in the length of the private- sector workweek, bumping up to 30.9 hours (a gain of about 12 minutes). However, the workweek remains about 4% shorter as compared to last year at this time.
Regional labor Market
The monthly number of initial claims for unemployment insurance (UI) declined sharply (-9.2%) to 689 from 759 in the previous quarter. UI claims remain about 5% lower than yearago levels. The regional unemployment rate increased to 3% from 2.8% in the opening quarter of 2024. The regional unemployment rate has averaged 3% since January 2022.
Housing Market
In the housing market, the seasonally adjusted issuance of construction permits for single- family homes declined 6% from Q1 to Q2, dropping to 633 permits from 673 permits, however, the seasonally adjusted number of permits issued remained 9% above year-ago levels. The average value for a single-family building permit issued modestly ticked up by 0.5% to $253,000 from $251,500. Note that building permit value does not include the cost of land.