Georgia is confronting the repercussions of recent federal layoffs and budget cuts, alongside a decrease in tourism from international visitors and a notable reduction in film and television funding from major Hollywood studios.
Despite these challenges, the state’s diverse economy is seeing promising developments in other sectors.
According to Rajeev Dhawan of the Economic Forecasting Center at Georgia State University’s J. Mack Robinson College of Business, the state is experiencing a surge in data center construction, a steady influx of retirees relocating to the state, and an anticipated boost in the aerospace industry due to European NATO countries increasing their defense budgets in the coming years.
Dhawan shared insights from his semi-annual economic forecast during a conference held on August 28.
He noted that job additions in 2024 are expected to number around 41,900, a significant decline from the 66,800 jobs created in 2023.
This rate of job creation is approximately half of what Georgia witnessed between 2017 and 2019.
In the first half of 2025, the state saw only 11,700 jobs added.
The primary factor contributing to this sharp decline in job growth is the stress affecting white-collar, middle-management, and service-sector positions, which are grappling with advancements in artificial intelligence, uncertain global economic conditions, and shifts in the film and television industry.
Notably, Marvel Studios has moved its operations to London, impacting local job numbers.
Delta Air Lines, the state’s largest private employer, reported meager revenue growth of just 1.0 percent in the first half of 2025, with a decrease in coach ticket sales by 3.6 percent.
“The bread-and-butter of middle-class jobs in three well-paying service sectors — corporate, information technology (including specialized movie production) and wholesale (B2B) — constitute almost one-fourth of the state’s employment base and have lost more than 37,000 jobs since January 2023,” Dhawan explained.
As Dhawan articulated in his “Triangle of Money” theory, the sluggish job growth in these high-paying service sectors directly affects consumer spending, which is evident from the decline in sales tax revenue growth at the state level.
After witnessing solid double-digit growth in sales tax collections in 2022, this figure has now dropped to low single-digit levels.
On a more positive note, Georgia is experiencing a boom in data center construction driven by technology companies.
The state has overtaken Northern Virginia to become the nation’s leading market for data centers, with construction expanding beyond metro Atlanta into Bartow and Richmond counties, where land and energy costs are lower.
“This is beneficial for the construction industry and other supporting professions such as HVAC technicians, ready-made concrete suppliers, and electricians, who have had consistent work and will continue to benefit,” said Dhawan.
As electricity demands rise, additional power plants are likely to be built in areas outside the core Atlanta metro region, contributing to a significant construction multiplier effect.
While navigating these economic fluctuations, Georgia’s economy must capitalize on current growth opportunities before job growth starts to regain momentum by early 2026, as tariff rate structures stabilize, and anticipated aggressive rate cuts by the Federal Reserve bolster the housing market.
Furthermore, the aerospace and defense sectors, which include companies like Lockheed Martin and Gulfstream Aerospace, are projected to benefit as European NATO nations commit to increasing their defense spending to 5 percent of GDP.
This heightened demand for aerospace products will generate additional opportunities for suppliers located across Georgia.
image source from：appenmedia
